Contracts

In Maryland, a seller who misrepresents a material fact in the Residential Property Disclosure may face:

ANo liability if the buyer conducted a home inspection
BLiability for fraudulent or negligent misrepresentation and potential contract rescission✓ Correct
COnly a $1,000 fine from MREC
DLiability only if the defect causes personal injury

Explanation

Misrepresentation of material facts in the Maryland Residential Property Disclosure can expose the seller to liability for fraud or negligent misrepresentation, and gives the buyer grounds to rescind the contract.

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