Real Estate Practice in Maryland
Maryland practice includes strict rules on handling deposits and a distinctive residential disclosure-or-disclaimer requirement. This chapter covers trust accounts and the seller disclosure obligations in a Maryland sale.
Trust Accounts and Deposits
Deposit money and other client funds must be handled through the broker's trust (escrow) account. A salesperson who receives a deposit must deliver it promptly to the broker, and the broker must keep trust money separate from operating and personal funds. Commingling or converting trust money is a serious violation and a common basis for discipline in Maryland.
Residential Property Disclosure or Disclaimer
Under Real Property Article §10-702, the seller of most single-family residential property must give the buyer either a disclosure statement describing the property's condition and known defects, or a disclaimer statement selling the property 'as is.' A seller who chooses to disclaim still must reveal known latent defects that could pose a threat to the health or safety of occupants. Licensees should ensure the correct form is delivered on time.
Other Transaction Disclosures
Maryland transactions may involve additional state-specific matters, such as ground rents on certain properties and required lead-paint notices for older rental housing. Licensees should identify these issues early so the correct disclosures and registrations are completed. Careful, accurate disclosure protects consumers and shields licensees from later misrepresentation claims.