Post-Sale Issues in Real Estate Transactions

1. “As-Is” Property Sales
   1. Maryland
      • As-Is Sales:
        • Seller Disclosure Requirements: Even in “as-is” sales, Maryland law requires sellers to provide a Property Disclosure and Disclaimer Statement, detailing known material defects that could affect the property’s value or safety (Md. Code, Real Property § 10-702).
      • Exceptions to As-Is Sales: Sellers cannot misrepresent or omit known facts about latent defects (defects not readily observable). For example, a known issue with structural integrity or water intrusion must be disclosed.
      • Case Law:
        • In Golt v. Phillips, 308 Md. 1, 517 A.2d 328 (1986), the Maryland Court of Appeals held that sellers must disclose latent defects that are not apparent to a buyer, reinforcing the importance of honesty in disclosures.
   2. Washington, D.C.
      • As-Is Sales:
        • Disclosure Obligations: In D.C., sellers must disclose material defects in a Seller Disclosure Statement, even in as-is transactions. Misrepresentation or failure to disclose known issues can result in legal liability (D.C. Code § 42-1301).
      • Consumer Protection: The D.C. Consumer Protection Procedures Act (CPPA) also protects buyers against deceptive practices, requiring sellers to be truthful in their representations.
      • Case Law:
        • In Moses v. Howard University Hospital, 606 A.2d 27 (D.C. 1992), the court highlighted that failure to disclose known material defects could lead to rescission of the contract or damages under consumer protection laws.
   3. Virginia
      • As-Is Sales:
        • Caveat Emptor Principle: Virginia generally follows the caveat emptor (“buyer beware”) principle but requires sellers to disclose known material defects if asked directly by the buyer (Va. Code Ann. § 55.1-708).
      • Virginia Residential Property Disclosure Act: This act mandates that sellers disclose specific issues, such as known zoning violations or pending legal actions, but otherwise allows for as-is sales with limited disclosures.
      • Case Law:
        • In Fitzgerald v. Loudoun County, 289 Va. 499, 770 S.E.2d 777 (2015), the court held that sellers are liable for failing to disclose material facts they knew would affect the buyer’s decision to purchase.
2. Title Issues
   1. Maryland
      • Clouded Title:
        • Definition: A title cloud occurs when there are encumbrances or disputes over ownership that may affect the marketability of the property.
        • Resolution: Buyers can file a quiet title action to resolve disputes and clear any claims against the title.
      • Common Issues:
        • Undisclosed Liens: Hidden liens from previous owners can affect the buyer’s title.
        • Improper Recording: Errors in deed recording can lead to ownership disputes.
      • Case Law:
        • In Hill v. Cross Country Settlements, LLC, 402 Md. 281, 936 A.2d 343 (2007), the court addressed issues of title fraud and emphasized the importance of thorough title searches and title insurance.
   2. Washington, D.C.
      • Boundary Disputes:
        • Encroachments: Property boundaries can lead to disputes if structures like fences are built on a neighbor’s property.
        • Resolution: Surveying and quiet title actions can resolve these disputes, as well as negotiated settlements.
      • Case Law:
        • In Himmelstein v. Comcast of the District, LLC, 908 A.2d 324 (D.C. 2006), boundary disputes were discussed, highlighting the necessity of accurate property surveys.
   3. Virginia
      • Title Defects:
        • Encroachments and Easements: Unrecorded easements or encroachments can cloud a title and lead to disputes.
        • Legal Actions: Quiet title actions and title insurance claims are common ways to resolve these issues.
      • Case Law:
        • In Maron v. Yamil, 243 Va. 149, 413 S.E.2d 914 (1992), the court ruled on the importance of resolving encroachments through proper legal channels, including quiet title actions.
3. Other Common Post-Sale Issues
   • Maryland
     • Construction Defects: Buyers may discover construction defects that were not apparent during inspection. Legal action may be taken against builders or previous owners for failure to disclose or repair significant issues.
     • Zoning Violations: If the property is in violation of zoning laws, the buyer may face fines or be required to make costly changes to bring the property into compliance.
   • Washington, D.C.
     • Condominium Disputes: Issues with condo association rules or undisclosed fees can arise, leading to legal disputes.
     • Historic Preservation Restrictions: Buyers may face restrictions if the property is located in a historic district, affecting renovation plans.
   • Virginia
     • HOA Conflicts: Homeowners association rules and fees can lead to disputes if they were not fully disclosed or understood prior to purchase.
     • Environmental Hazards: Issues such as lead paint, asbestos, or radon can be discovered post-sale, leading to health concerns and legal action.

How Our Law Firm Can Assist

• Legal Advice and Representation
  • Contract Review: Ensure buyers and sellers understand their rights and obligations, including disclosure requirements and potential liabilities.
  • Title Examination: Conduct thorough title searches and address any issues or discrepancies before closing.
• Dispute Resolution
  • Litigation Support: Represent clients in court to resolve disputes related to title defects, boundary issues, or undisclosed defects.
  • Mediation and Negotiation: Facilitate alternative dispute resolution methods to reach amicable settlements without litigation.
• Post-Sale Assistance
  • Defect Claims: Assist in pursuing claims against sellers or builders for undisclosed defects or violations of disclosure laws.
  • Zoning and Compliance Issues: Provide guidance on resolving zoning violations or compliance with local regulations.

Real estate transactions involve numerous complexities, and even after closing, various issues can arise that require legal attention. Understanding the applicable laws and potential post-sale issues in Maryland, Washington, D.C., and Virginia is essential for protecting the interests of both buyers and sellers. A law firm can provide invaluable assistance in navigating these challenges, offering legal advice, dispute resolution, and post-sale support to ensure a smooth and successful real estate transaction.