“Do I have to tell them about that?” is one of the most common questions I hear from sellers. In Maryland, part of the answer comes down to two words: latent defect. If you know about one, you have to disclose it, even when you’re selling the house as is.
I’m Evan Weissman. I buy houses across Maryland, many of them with problems the owner already knows about. I’m not a lawyer, and you should get legal advice for your own situation. But here’s what the law says, what kinds of problems fit the definition, and how I’ve seen sellers handle them.
The definition, piece by piece
Maryland Real Property Section 10-702 defines latent defects as material defects in the property or an improvement that:
- A buyer wouldn’t reasonably be expected to notice or observe by a careful visual inspection, and
- Would pose a direct threat to the health or safety of the buyer or an occupant, including a tenant or invitee of the buyer.
Each part matters. Let’s break it down.
Material. It has to be significant, not a nitpick.
Hidden from a careful visual inspection. If a buyer walking through with open eyes would see it, like a sagging porch or a water stain on the ceiling, it generally isn’t latent. If it’s behind drywall, under flooring, buried in the yard, or only shows up in certain conditions, it might be.
A direct threat to health or safety. This is the part people miss. A hidden cosmetic problem isn’t a latent defect under this definition. The defect has to be dangerous.
Actual knowledge. The duty applies to latent defects the seller actually knows about. You aren’t required to investigate or hire inspectors to find them.
Examples that often fit
Here are situations that, depending on the facts, could fit the definition if the seller knows about them:
- Faulty wiring hidden in walls, such as a known problem an electrician found and nobody fixed
- A cracked furnace heat exchanger that a technician flagged, which can create a carbon monoxide risk
- Structural damage covered up by paneling, carpet, or fresh drywall
- A past sewage backup that left contamination in a finished basement wall
- Mold growth inside walls from a leak the seller knows about
- A buried oil tank known to have leaked
- Termite damage to framing that was hidden by finishes
None of these are automatic. Whether something fits depends on what was visible, what the seller knew, and how serious it is.
Problems that usually don’t fit
Some issues are real and still don’t meet the latent defect definition:
- Visible problems. Cracked windows, a worn roof you can see from the street, or rotten deck boards.
- Cosmetic issues. An outdated kitchen or stained carpet.
- Hidden issues that aren’t dangerous. A slow drain or an inefficient water heater.
- Things you don’t know about. If you never knew, there’s no duty to disclose under this rule.
That said, “doesn’t meet the definition” isn’t the same as “safe to hide.” Actively concealing a problem, or answering a question falsely, creates its own risk. If you choose the disclosure statement instead of the disclaimer, you’re answering a much broader set of questions about condition.
How latent defects show up on the state form
The state form has two options, and latent defects appear on both. The disclaimer page asks directly whether the seller has actual knowledge of any latent defects, with space to describe them. The disclosure statement asks about many systems, and the definition is printed on the form. I compare the two in disclosure vs. disclaimer. If the house is in 21157 or 21158 and you’re dealing with disclosure of hidden defects, see a cash offer on a Westminster house. For disclosure of hidden defects around Dundalk, see selling a house in Dundalk.
The current form is posted by the Maryland Department of Labor. Some transfers, like sales by a personal representative during estate administration and foreclosure sales, are excluded from the form requirement.
Federal lead paint disclosure is separate
For most homes built before 1978, a federal rule adds its own duties. The EPA’s lead disclosure page explains that sellers must provide specific information about known lead-based paint and lead-based paint hazards before a buyer signs a contract. That applies on top of the Maryland form, and it isn’t limited to hidden problems. My article on lead paint in Baltimore homes covers it further.
How to write a disclosure that helps you
If you know about a hidden hazard, a clear and specific description protects everyone. Some practical tips:
- Say what it is. “Electrician found an overheating circuit in the back bedroom in 2024” is better than “some electrical issues.”
- Say what was done. If it was repaired, say when and by whom, and keep the invoice.
- Attach reports. RP 10-702(i) says a seller generally isn’t liable for errors based on a report from a licensed expert working within their field.
- Don’t guess. If you’re not sure, say what you know and that you’re not sure of the rest.
- Get help when it’s serious. A real estate attorney can review your wording.
Buyers usually react better to an honest, specific disclosure than to a surprise their inspector finds.
Selling a house with a known hazard
A known latent defect doesn’t make a house unsellable. Financed buyers may need it fixed before their lender will fund. A cash buyer may take the house as is and account for the repair in the price. When I buy, I want to know about hidden problems up front, and I factor them into my offer instead of renegotiating later. My as-is page explains that process.
What is considered a latent defect in Maryland?
A material defect that a buyer wouldn’t notice by a careful visual inspection and that poses a direct threat to the health or safety of the buyer or an occupant.
Do I have to disclose a defect I didn’t know about?
No. The latent defect duty applies to defects the seller actually knows about. You aren’t required to investigate.
Is a roof leak a latent defect?
It depends. A visible stain or obvious damage usually isn’t latent. A hidden leak causing a known safety hazard, like mold or a weakened structure, might be.
Does selling as-is let me skip latent defects?
No. The Maryland disclaimer statement still requires disclosure of latent defects you actually know about.
What if I fixed the problem already?
If it was properly fixed, describing the repair and keeping records is usually wise. If a hazard remains, it still needs to be disclosed.
Talk through your situation
If you know about a hidden problem and you’re not sure how it affects your sale, call or text me at (410) 498-7473. I’ll tell you how I’d look at it as a buyer.