Important Maryland Contract Update

SIGNIFICANT CHANGES IN THE MARYLAND RESIDENTIAL PROPERTY DISCLOSURE AND DISCLAIMER ACT (HB465 SB511) WENT INTO EFFECT MONDAY OCTOBER 1, 2007:


"...on or after October 1, 2007, a seller who elects to give a disclosure statement must now provide the purchaser with information regarding the existence and operability of carbon monoxide alarms installed within the premises. In particular, a new question will be added to the Residential Property Disclosure as follows: '... If the property relies on the combustion of a fossil fuel for heat, ventilation, hot water, or clothes dryer operation, is a carbon monoxide alarm is installed on the property.'"



ALSO: A NEW CONSERVATION EASEMENT DISCLOSURE TAKING EFFECT OCTOBER 1, 2007 (HB401 SB535) WILL REQUIRE CHANGES TO THE EXCLUSIVE RIGHT TO SELL LISTING AGREEMENT. FAILURE TO MAKE NOTE OF THIS CHANGE COULD LEAD TO A RECINDED CONTRACT!

"Under the new law, every contract of sale must contain a notice to the purchaser as to whether the property is encumbered by one or more conservation easement(s) or other restrictions limiting or affecting uses of the property."

"The required contract of sale notice is specified in the statute. The Maryland Association of REALTORS® has prepared an addendum which contains the required statutory notice and will be disseminated to local Boards and Associations of REALTOR® on or before October 1, 2007."

"Under the new law, if the property is encumbered by one or more conservation easement(s), and the contract of sale does not contain the required notice as specified in the new law, then the buyer has the right to rescind the contract of sale."