Skip to main content

Ask Andrew: What Must You Disclose While Listing A Home?

By WTOP Staff

Ask Andrew

This sponsored, biweekly Q&A column is written by Andrew Goodman, broker/owner of Goodman, Realtors. Based in Bethesda, Andrew serves clients in Maryland, D.C., and Northern Virginia. Please submit comments, questions, and opinions in the comments section or via email.

Question: I am getting ready to list a property that had water damage. I have since repaired everything. What do I have to disclose?

Answer: In Maryland, you must disclose pretty much everything! As a realtor, it is instilled in our brains to disclose, disclose, disclose.

From the Maryland Association of Realtors “Notice of Buyers Rights to Property Disclosure” addendum: A written property disclosure statement listing all defects including latent defects, or information which the seller has actual knowledge in relation to the following:

  • Water and sewer systems
  • Insulation
  • Structural systems, including the roof, walls, floors, foundation, and any basement
  • Plumbing, electrical, heating, and air conditioning systems
  • Infestation of wood-destroying insects
  • Land use matters
  • Hazardous or regulates materials, including asbestos, lead-based paint, radon, underground storage tanks, and licensed landfills
  • Any other material defects, including latent defects
  • Whether the smoke alarms:
    • Will provide an alarm in the event of a power outage
    • Are over 10 years old
    • If battery operated, are sealed, tamper resistant units incorporating a silence/hush button and use long-life batteries as required in all Maryland homes by 2018
    • If the property relies on the combustion of fossil fuel for heat, ventilation, hot water, or clothes dryer operation, whether a carbon monoxide alarm is installed on the property.

“Latent defects,” means material defects in real property or any improvement to real property that:

  • A buyer would not reasonably be expected to ascertain or observe by a careful visual inspection
  • Would pose a threat to the health or safety of the buyer or an occupant of the property

When selling a home with an issue such as the one in question, I would disclose everything.

Don’t leave out any details. However, make sure to have written documentation from the licensed contractors who repaired the damage to show the buyer all of the work that was done. That will hopefully remove any fears that they may have. If the proper steps were taken to repair the damage and there is proof of those steps, the potential buyers should not be nearly as worried as they were to find the past problem on their own.

If the seller didn’t want to disclose everything, he or she can provide a written disclaimer statement providing that:

  • Except for latent defects of which the seller has actual knowledge, the seller makes no representations or warranties as to the condition of the real property or any improvements on the real property.
  • The buyer will be receiving the property “as is,” with all defects, including latent defects, that may exist

If a disclaimer is provided instead of a disclosure, the buyer could believe there is a higher risk with the property and could therefore offer less on the property. A disclosure statement tends to lead to higher offer prices and sometimes even a waived home inspection — whereas a home inspection is almost a necessity when a buyer is provided with a disclaimer statement.

If you know something is wrong with the property, repair it before listing the home and disclose it to the buyers.

That is just the best way to handle something. If something is not disclosed, the buyer will eventually find out and it will lead to a larger issue later on.

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
Read Next Story

Related News

Frustration grows in Venezuela as earthquake death toll reaches 1,430

Israel and Lebanon sign framework agreement with US in ‘first step’ toward peace, Rubio says

Trump-endorsed populist poised to become Colombia’s next president as rival challenges vote