Section 15 unit 4 Maryland Property Disclosures

So now you know why you are required to disclose material facts, but how can you actively gather information about a property's material facts without acting outside of the scope of your expertise? Select all that apply.

-Have the seller complete the disclosure/disclaimer forms -Perform your own self-inspection of the property -Review the property's survey data to verify its accuracy -Verify the seller's information by checking public records

Charlotte, an associate broker, has finally saved up enough of her commission earnings to buy an oceanfront condo in Ocean City. Assuming that she's made all of the necessary disclosures and included all the necessary paperwork with her offer, what do we know she sent to the seller's agent?

A disclosure that she's a real estate licensee

Antonia just got her salesperson's license and is selling a home that's been in her family for four generations. She's done a lot of work rehabbing it and is looking forward to seeing it pay off in a nice commission check once it sells. She and her brother are both on the title. What does she need to include in the listing paperwork and disclosures?

A disclosure that she's a real estate licensee and has a personal interest in the sale

Let's begin by defining material fact. Which definition applies?

Any fact that would influence the buyer's decision to purchase the property, to purchase it at a certain price, or with certain conditions

Candy received a copy of the seller's disclosure statement two days after she entered into the sales contract.

Can Rescind

Emily received the seller's disclosure statement an hour before she entered into the sales contract.

Cannot Rescind

Which of these scenarios does NOT require a Maryland licensee to disclose their licensed status?

Deirdre just put her niece's house on the market.

Emerald wants to sell his property "as is" and not have to make any representations or warranties about the condition of the property. Based on this information, which of the following statements is true?

Emerald must complete the disclaimer section of the Maryland Residential Property Disclosure and Disclaimer Statement form.

As you've learned, the seller must provide the Maryland Residential Property Disclosure and Disclaimer Statement to the buyer upon or before entering into a contract of sale with the buyer. However, there are exceptions to this requirement. In what two situations must the statement be delivered before the contract is executed?

In the case of an option to purchase agreement, or a lease agreement containing an option to purchase provision, In the case of a land installment contract

What would you tell your clients that the disclosure statement is?

It is the seller's representation of the property's condition.

If the seller elects to complete the disclosure section of the Maryland Residential Property Disclosure and Disclaimer Statement form, who is required to sign and date it?

The buyer and seller only

Jorge's firm has just been assigned as the listing brokerage for a foreclosed condo unit in Jorge's own building. Jorge knows that given the unit's condition, it's bound to sell for far less than market value of a nicer unit such as his. Worried that the new listing will bring down his unit's value, Jorge quickly lists his unit at current market price and sells it before the foreclosed listing hits the market—at a price $100,000 less than Jorge sold his unit for. Has Jorge done anything wrong?

Yes, Jorge has engaged in self-dealing.

State that the purchaser will be receiving the real property "as is," with all defects, including latent defects, that may exist, except as otherwise provided in the contract of sale for that property.

disclaimer

State that, except for latent defects, the seller makes no representations or warranties as to the real property's or its improvements' condition.

disclaimer

Include items pertaining to the property's physical condition as required by the Maryland Real Estate Commission (MREC).

disclosure

Include a list of defects, including latent defects, or information about which the seller has actual knowledge.

disclosure statement

According to the notice, the disclosure law applies to all types of sales transactions.

false

By signing and dating the notice, the buyer is acknowledging receipt of the seller's property condition disclosure statement.

false

Even if a listing agent is aware of an interested buyer, that agent is only required to provide the buyer or the buyer's agent with a copy of the disclosure after the buyer has submitted an offer.

false

Regardless of whether a buyer is represented by a licensee or not, the seller agent is responsible for explaining to the buyer the buyer's rights and obligations with regard to the disclosure.

false

The requirement to provide a property condition disclosure or disclaimer statement applies only to sellers who are represented by a real estate licensee.

false

There is no single, standardized form that sellers have to use to provide their disclosure or disclaimer statement.

false

Failure to present the Maryland Residential Property Disclosure and Disclaimer Statement to the buyer opens the licensee up to disciplinary action.

true

If a buyer is not represented by a licensee, the seller's agent is responsible for ensuring that the buyer receives a copy of the completed disclosure and that the buyer understands their obligations with regard to the form.

true

If the listing agent is not aware of a prospective buyer until that buyer presents an offer, the listing agent should immediately provide a copy of the form upon receiving the offer.

true

Sellers of single-family residential real properties are required to provide a property condition disclosure or disclaimer statement to prospective buyers.

true

The notice identifies the type of information the disclosure and disclaimer statements must contain, according to Maryland law.

true

The notice is used as an addendum to MAR's Residential Contract of Sale agreement.

true

The purpose of the notice is to inform buyers and sellers about the type of information that must be disclosed or disclaimed and their responsibilities under Maryland's Property Condition Disclosure Law.

true

The seller must provide the disclosure or disclaimer statement upon or before entering into a contract of sale with the buyer.

true