Skip to content

Property Disclosure Statement Guide: What Landlords, Tenants, and Investors Need to Know

Learn everything about property disclosure statements, including legal requirements for sellers, what tenants should know when their rental is being sold, and how investors can protect themselves during transactions.

Introduction

A Property Disclosure Statement is a legally significant document that requires property sellers to reveal known material defects and issues with a property. Whether you're a tenant whose rental home is being sold, a landlord selling your rental property, or a real estate investor managing multiple properties, understanding disclosure requirements is crucial to protect your interests and avoid potential legal disputes. This guide explains what property disclosure statements entail, who needs to complete them, what must be disclosed, and how these documents affect different parties in real estate transactions.

0/5000

Key Things to Know

  1. 1

    Property disclosure requirements vary by state, so always check your local laws or consult with a real estate attorney to understand specific obligations in your area.

  2. 2

    Disclosure statements typically cover known issues only—sellers generally aren't required to hire inspectors to discover unknown problems.

  3. 3

    For landlords selling rental properties, tenant-reported maintenance issues should be included in your disclosures, even if you haven't personally verified them.

  4. 4

    Tenants' lease rights are generally protected when a rental property is sold; the new owner typically must honor existing lease terms.

  5. 5

    Real estate investors should maintain detailed property records and consider pre-listing inspections to facilitate accurate disclosures.

  6. 6

    Selling a property 'as-is' does not exempt sellers from disclosure requirements—you must still disclose known material defects.

  7. 7

    The consequences of inadequate disclosure can include lawsuits, monetary damages, rescission of the sale, and significant legal expenses.

  8. 8

    When in doubt about whether to disclose something, the safer legal approach is to include it in your disclosure statement.

Key decisions before you file

Before you file a Property Disclosure Statement in Maryland, a few decisions shape the document: which option to choose and what each one means. The Property Disclosure Statement guide walks through them.

Open the Property Disclosure Statement guide

Customize your Property Disclosure Statement Template with DocDraft

Maryland Requirements for Property Disclosure Statement

  • Maryland Residential Property Disclosure and Disclaimer Act (Maryland Real Property Code § 10-702)

    The primary Maryland law governing property disclosures that requires sellers to either provide a disclosure statement or a disclaimer statement to buyers. The disclosure must be given to the purchaser on or before entering into a contract of sale.

  • Latent Defect Disclosure Requirement (Maryland Real Property Code § 10-702(d)(2))

    Requires disclosure of any material latent defects that the seller has actual knowledge of and that would not be discoverable upon a reasonable inspection. This applies even when using a disclaimer statement.

  • Lead-Based Paint Disclosure (42 U.S.C. § 4852d; 24 CFR Part 35; 40 CFR Part 745)

    Federal law requiring disclosure of known lead-based paint and lead-based paint hazards in housing built before 1978, including providing buyers with an EPA-approved information pamphlet and any available records or reports.

  • Maryland Lead Risk Reduction Standards (Maryland Environment Article, Title 6, Subtitle 8)

    Maryland-specific requirements for lead paint disclosures and risk reduction in residential properties built before 1978, including compliance with the Maryland Lead Poisoning Prevention Program.

  • Water and Sewer Disclosure (Maryland Real Property Code § 10-702(e)(2)(ix))

    Requires disclosure of whether the property is connected to public water and sewer systems or has private water supply and sewage disposal systems, including information about their condition.

  • Environmental Hazards Disclosure (Maryland Real Property Code § 10-702(e)(2)(viii))

    Requires disclosure of known environmental hazards affecting the property, including but not limited to asbestos, radon, and underground storage tanks.

  • Structural Issues Disclosure (Maryland Real Property Code § 10-702(e)(2)(i))

    Requires disclosure of known material defects in the structural components of the property, including the foundation, roof, walls, and floors.

  • Homeowners Association/Condominium Disclosure (Maryland Real Property Code § 11-135 (Condominiums) and § 11B-106 (HOAs))

    Requires disclosure of whether the property is part of a homeowners association or condominium, including information about fees, restrictions, and governing documents.

  • Flood Zone Disclosure (Maryland Real Property Code § 10-702(e)(2)(x))

    Requires disclosure of whether the property is located in a designated flood zone or wetland, or if there is a history of flooding on the property.

  • Methamphetamine Laboratory Notice (Maryland Real Property Code § 10-702(e)(2)(xii))

    Requires disclosure if the property was used as a site for the production of methamphetamine and has not been properly decontaminated.

  • Military Installation Disclosure (Maryland Real Property Code § 14-117(l))

    Requires disclosure if the property is located within a certain distance of a military installation, which may subject it to aircraft noise or other impacts.

  • Smoke Detector Compliance (Maryland Public Safety Article § 9-103 to § 9-109)

    Requires disclosure of whether the property complies with Maryland's smoke detector laws, which mandate specific types and locations of smoke alarms based on when the home was built.

  • Deferred Water and Sewer Charges (Maryland Real Property Code § 14-117(a)(5))

    Requires disclosure of any deferred water and sewer charges that the buyer may be obligated to pay in the future.

  • Special Protection Area (Maryland Environment Article § 5-1901 et seq.)

    Requires disclosure if the property is located in an environmentally sensitive area designated as a Special Protection Area, which may limit development or require special permits.

  • Historic District Designation (Maryland Land Use Article § 8-101 et seq.)

    Requires disclosure if the property is located in a historic district, which may subject it to additional regulations regarding renovations and exterior changes.

  • Airport Noise Zone Disclosure (Maryland Real Property Code § 14-117(k))

    Requires disclosure if the property is located within a noise zone of an airport, which may affect quality of life and property values.

  • Mold Disclosure (Maryland Common Law; Maryland Real Property Code § 10-702)

    While not explicitly required by statute, case law and best practices dictate disclosure of known mold issues under the general duty to disclose material defects.

  • Stigmatized Property Disclosure (Maryland Common Law)

    Maryland law does not generally require disclosure of deaths (including homicides or suicides) or other psychological impacts that occurred on the property, but material misrepresentations if asked directly can create liability.

  • Underground Storage Tank Disclosure (Maryland Environment Article § 4-411 et seq.)

    Requires disclosure of known underground storage tanks on the property, which may pose environmental hazards and require remediation.

  • Federal Fair Housing Act Compliance (42 U.S.C. § 3601 et seq.)

    Prohibits discrimination in the sale or rental of housing based on race, color, religion, sex, familial status, national origin, or disability, affecting how disclosures are presented and communicated.

Frequently Asked Questions