Maryland Property Disclosure Requirements: What Personal Representatives Need to Know

If you're selling a home through probate in Maryland, you need to understand the state's disclosure requirements. Maryland law requires sellers of residential property to provide buyers with either a Disclosure Statement or a Disclaimer Statement before the sale is final.

This applies to probate sales too. As a Personal Representative, you're responsible for complying with this law — even if you've never lived in the property and don't know its condition.

The Two Options

Maryland gives sellers two choices. You must provide one or the other — not both.

Option 1: Residential Property Disclosure Statement

This is the detailed disclosure form. It requires the seller to answer questions about known defects and conditions in the property, including:

• Structural components (foundation, walls, roof)
• Plumbing, electrical, and HVAC systems
• Water and sewer systems
• Environmental hazards (lead paint, asbestos, radon)
• Pest infestations
• Zoning violations
• Flood zone status
• Previous repairs or renovations
• Known issues with the property

The key word here is "known." You're disclosing defects you're aware of — not defects you're required to discover through inspection.

Option 2: Residential Property Disclaimer Statement

This is the "as-is" option. By signing the Disclaimer Statement, the seller is stating that they're selling the property without any representations or warranties about its condition. Essentially: "I'm not telling you anything about what's wrong with this house. Buy it at your own risk."

The Disclaimer Statement is simpler and faster. But it has limitations.

What You Must Always Disclose: Latent Defects

Here's the critical part that many sellers — and even some agents — don't fully understand.

Even if you choose the Disclaimer Statement (as-is), you must still disclose latent defects.

A latent defect is a hidden problem that:

1. A buyer would not reasonably be expected to discover through a careful visual inspection
2. Would pose a direct threat to the health or safety of the buyer or any occupant

Examples of latent defects that must be disclosed even in an as-is sale:

• Known structural damage hidden behind walls
• Previous flooding or water intrusion that isn't visible
• Asbestos or lead paint (beyond what federal law already requires)
• Foundation problems not visible from a visual inspection
• Known mold contamination behind walls
• Previous termite damage that's been repaired but isn't visible
• Known contamination from underground storage tanks

The point is simple: you can sell a house as-is, but you can't hide things that could hurt someone.

What This Means for Personal Representatives

As a Personal Representative selling a probate property, you face a unique challenge: you may not know the property's condition.

You didn't live there. You may have never walked through every room. You may not know whether the roof leaks, the plumbing is original, or the foundation has issues.

Maryland law recognizes this. The disclosure requirement is based on what you know, not what you should have investigated. If you genuinely don't know about a defect because you never had access to the property or never observed it, you're not required to disclose it.

But here's where it gets tricky.

If you're the Personal Representative and you've been managing the property — paying bills, coordinating repairs, visiting the property — you may have knowledge of defects that you're expected to disclose. Ignoring problems you've seen doesn't make them go away.

As a Personal Representative, you also have a fiduciary duty to the estate and its beneficiaries, which includes making informed decisions about disclosure.

Best practices for Personal Representatives

1. Visit the property before listing. Walk through every room. Look for obvious issues: water stains, cracks, peeling paint, broken windows, mold, pest evidence.
2. Gather records. Check for repair invoices, maintenance records, insurance claims, or inspection reports that may reveal past problems.
3. Ask family members. Other heirs or family members who lived in or visited the property may have knowledge of defects you don't.
4. Be honest about what you don't know. If you genuinely don't know the condition of the plumbing because you've never turned on a faucet, say so. Don't guess.
5. Choose the right form. If you know nothing about the property's condition, the Disclaimer Statement may be more appropriate. If you know specific issues, the Disclosure Statement may be necessary.
6. Talk to your attorney. The decision of which form to use — and what to disclose — is a legal one. Your probate attorney should advise you.

Which Option Should You Choose?

Choose the Disclaimer Statement (as-is) if:

• You have limited knowledge of the property's condition
• The property is being sold as-is with no repairs
• You want to minimize your exposure to claims about the property's condition
• You genuinely don't know about specific defects

Choose the Disclosure Statement if:

• You know specific issues with the property
• You've managed the property and are aware of past problems
• You want to provide transparency to buyers
• The property has known issues that buyers should understand

Talk to your attorney if:

• You're not sure which option applies
• The property has known issues you're not sure whether to disclose
• There's been past flooding, structural work, or environmental issues
• Family members have information about the property you don't

Exemptions

Maryland's disclosure requirements don't apply in every situation. Exemptions include:

• New construction that has never been occupied
• Properties with a certificate of occupancy issued within the past year
• Foreclosure sales (court-ordered)
• Transfers between co-owners
• Transfers by gift
• Transfers pursuant to a court order (other than foreclosure)

A probate sale is NOT automatically exempt. Even though the property is being sold through the estate, the disclosure requirements still apply.

Common Mistakes Personal Representatives Make

1. Signing the Disclosure Statement without reading it

The form has specific questions about specific systems. Don't just sign it because your agent told you to. Read it. Understand what you're being asked. If you don't know the answer, say so.

2. Assuming "as-is" means "no disclosure needed"

It doesn't. Even as-is sales require disclosure of latent defects that pose health or safety risks. For more on the as-is approach, see our guide on whether to sell a probate house as-is or make repairs.

3. Relying on what the family told you

Just because your sister said "the house is fine" doesn't mean it is. Visit the property yourself. Look for issues. Document what you see.

4. Ignoring problems you've already seen

If you walked through the basement and saw water stains, you can't claim you didn't know about water issues. Document what you observe and disclose it.

5. Not consulting an attorney

The disclosure decision is a legal one. Don't make it alone. Your probate attorney should review the form before you sign it.

How This Affects the Sale

Buyers and their agents pay close attention to the disclosure form. A well-completed Disclosure Statement can actually build trust and speed up the sale. A vague or incomplete Disclosure can scare buyers away or lead to post-sale disputes.

The Disclaimer Statement can also work well, especially for as-is sales. But buyers may interpret it as the seller hiding something, which can lead to lower offers.

The best approach depends on your specific situation. An experienced probate agent can help you navigate this decision.

What If You Don't Comply?

If you fail to provide the required disclosure or disclaimer, the buyer may have legal remedies. Maryland law gives buyers the right to:

• Cancel the contract within a certain period
• Seek damages for undisclosed defects
• Rescind the sale in extreme cases

As a Personal Representative, you have a fiduciary duty to the estate. Failing to comply with disclosure requirements could expose both you and the estate to liability.

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Selling a Probate Property in Maryland?

If you're the Personal Representative of an estate and need to sell a property, I can help you understand the real estate side of the process — including disclosure requirements, pricing, and your selling options.

There is no obligation.

Schedule a no-obligation call

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Important Note: This article provides general educational information about Maryland property disclosure requirements. It is not legal advice. Every situation is different. Personal Representatives should consult a qualified Maryland probate attorney regarding their specific disclosure obligations and the decision of which form to use.