Legal Question in Real Estate Law in Maryland
No Disclosure Provided
Recently sold our home without a real estate agent. Buyer provided forms and we completed. We never completed a disclaimer or disclosure form. We did perform 1% of sale price of house to house per the contract. Settlement occurred. Buyer is now threatening fraud suit for non-disclosure of known defect - defect was noted in his home inspectors report. Does buyer have a case
1 Answer from Attorneys
Re: No Disclosure Provided
The buyer waives his/her right to terminate the contract if the disclosure statement is not received before settlement. And if the buyer was put on notice by the inspection of the defect, it is unlikely that he/she will prevail in any legal action against you. He/she knew about the defect before settlement and failed to either (a) request that the defect be remedied or (b) demand a reduction in price to account for the defect. Either way, you would have had an opportunity to renegotiate the contract or walk away from that offer.
If you are named as a defendant in a lawsuit or are asked to schedule mediation, do not ignore it. As well, I do not recommend that you proceed without counsel in either of those circumstances.