Maryland Seller Disclosures and the Condo Resale Package

When you sell an Ocean City condo, two different sets of paperwork can come up: Maryland's property disclosure or disclaimer statement, and the condominium resale package. They serve different purposes, follow different rules, and need to be understood separately.

The first addresses what the seller knows about the property's condition. The second gives the buyer information about the condominium association and ownership, including its finances, governing documents, and certain unit-specific matters. Completing one doesn't take the place of the other when both apply.

Part 1: Maryland Property Disclosure and Disclaimer

This part concerns the seller's knowledge of the property, whether the sale involves a house or an individual condo unit, subject to the law's scope and exemptions.

Choosing between disclosure and disclaimer

The Maryland Residential Property Disclosure and Disclaimer Statement offers two alternatives. The disclosure asks about known property conditions. The disclaimer generally conveys the property as is, subject to disclosed latent defects and the sales contract's terms.

I almost always recommend the disclaimer for my sellers. The overwhelming majority own second homes here, and they aren't present to observe the property every day. My concern is that they shouldn't feel pushed into giving confident answers about conditions they haven't personally observed.

That doesn't mean a seller needs perfect knowledge to choose the disclosure. The form allows “Unknown” answers where applicable and is based on actual knowledge. My recommendation reflects the circumstances of the owners I work with; it doesn't change either seller's responsibility to be truthful.

We address these forms during the listing process. For covered ordinary sales, Maryland law requires delivery on or before entering the sales contract. Certain fiduciary transfers, foreclosure transactions, and qualifying initial sales are among the exemptions. If an exemption may apply, confirm it with the attorney handling the transaction.

What a latent defect means

A recurring dryer-vent problem that causes overheating is the kind of issue that should get your attention immediately. A cabinet visibly hanging from one hinge presents a different question. But “not a latent defect” doesn't automatically mean “irrelevant to the sale.” The disclosure questions, contract, and actual circumstances still matter.

The same distinction applies to an ice maker that doesn't work. It may not meet that legal definition, but my practical advice is to disclose it. Buyers shouldn't have to discover after moving in that something you knew was broken had been left unexplained.

Why I recommend disclosing more

“At the end of the day, there's nothing wrong with disclosing or overdisclosing.”

Grant Fritschle

When a seller asks whether to mention a problem, my answer is usually to put it in writing. Water is one area where I'd much rather have a clear explanation than an uncomfortable surprise.

If a bedroom window leaks during heavy rain and you've repainted the surrounding area, explain what happened. If water repeatedly collects in the backyard, mention it. If storms leave sinkholes behind a waterfront bulkhead that you've been filling, don't assume the filled holes tell the whole story.

Repairs deserve context, too. Explain the known history, what work was performed, and whether the problem has recurred. Keep invoices or other supporting records when possible. Don't promise that a problem is permanently resolved unless you have a sound basis for that statement.

This is practical advice about preparing a transparent sale, not a claim that every example meets the statutory definition of a latent defect. Giving a buyer useful information early creates room for questions before time pressure makes them harder to resolve.

A separate flood disclosure requirement begins in 2027

Water history deserves attention now, whether you're selling in Ocean City, Ocean Pines, or Berlin. The existing disclosure form already asks about flooding and other property conditions.

Chapter 776 of Maryland's 2026 laws adds a separate flood-risk disclosure obligation for covered residential sales beginning July 1, 2027, before entering a contract. It includes the state's flood-risk form and applicable supporting information, such as an available FEMA elevation certificate, flood-claim proceeds, and the number of flooding events.

That future flood requirement is another property-condition obligation. It doesn't postpone today's applicable disclosure duties, and it isn't part of the condominium resale-package process explained below.

Part 2: Maryland Condo Resale Packages

Now we move to a different requirement under Maryland's condominium law. Beyond the seller's condition statement, a condo purchaser needs information about the association, the building's finances, and the rules governing ownership. That is the purpose of the condo resale package.

The package includes information from both the association and the seller. It doesn't replace the disclosure or disclaimer statement, an inspection, or additional insurance and title review.

What the resale package contains

Who orders the package and pays for it

As standard practice for my seller clients, we order the package from the association or its manager at contract, advance the cost, and receive reimbursement at settlement. We generally request expedited delivery because getting the information into the buyer's hands promptly helps everyone understand where the transaction stands.

Condo resale deadlines and the buyer cancellation period

These are distinct deadlines under the resale statute. An incomplete package should not be treated as starting the seven-day period. A purchaser exercising the statutory right is entitled to return of the deposit, subject to applicable broker trust-account procedures.

Read the documents when they arrive. If something is missing or unclear, raise it immediately and confirm the applicable deadline with your agent and attorney. A stack of attachments sitting unopened in an inbox doesn't help anyone.

Why my purchasers have canceled after reviewing condo documents

I've worked with purchasers who canceled their contracts after reviewing the association's documents. The concerns came from what that review revealed about the building's financial position and preparation for necessary work.

In those instances, the reserve study hadn't been completed, the association had very low reserves, and there was no near-term plan for correcting necessary items. My clients faced uncertainty about the work ahead, the money available, and how a financial shortfall might reach them as owners. After reviewing that exposure, they canceled their purchase contracts.

Maryland law requires reserve studies and funding plans for residential condominiums. A study evaluates major common-element repair and replacement needs, expected timing, and costs. It helps give financial decisions a factual foundation.

A low balance alone doesn't tell the whole story. An association may have recently completed a substantial project, for example. What matters is understanding the remaining obligations, available resources, and a credible plan for funding the work. In the situations my clients encountered, the combination of concerns was the problem.

For sellers, this is a reason to understand your building's position before a buyer asks. You can't personally fix an association's finances, but you can obtain the current information, identify unanswered questions, and prepare for an informed discussion.

What I want purchasers to read closely

“You can't read enough, is the right answer.”

Grant Fritschle

Start with the finances. Read the budget, financial statements, reserve study, and funding plan together. Ask what work is approaching, what has already been approved, and how the association expects to pay for it. A monthly condo fee tells you what ownership costs today; it doesn't answer every question about tomorrow.

Next, review the insurance information. Ask the association manager and your insurance professional about the master policy, deductibles, and the coverage you need for your unit. A general description of the building's insurance should be the beginning of that conversation.

Then read the declaration, bylaws, and rules for the details affecting your intended use. Rental restrictions, pets, renovations, parking, and boat slips can matter as much as the floor plan. A purchaser with two dogs needs to understand an applicable one-dog rule before settlement.

Ask for recent meeting minutes if they're not included. When a new budget is still proposed, request it alongside the current approved budget and keep the distinction clear. These additional materials can help explain what the board is discussing, even when they aren't part of the required resale delivery.

Parking and boat slips deserve special attention when they're part of the property's appeal. An informal assignment and a recorded ownership right aren't interchangeable. If the paperwork doesn't match what's being represented, get clarification and have the settlement attorney address the legal rights involved.

Questions sellers ask

What is the difference between the Maryland disclosure and disclaimer?

The disclosure asks about known property conditions. The disclaimer generally conveys the property as is, subject to disclosed latent defects and the sales contract's terms.

What is a latent defect in Maryland?

Maryland's definition has two essential parts: a material defect that a buyer wouldn't reasonably discover through a careful visual inspection, and a direct threat to health or safety. The disclaimer doesn't excuse a seller from reporting such a defect when they actually know about it.

How does your team handle the condo resale package for a seller?

As standard practice for my seller clients, we order the package from the association or its manager at contract, advance the cost, and receive reimbursement at settlement.

When does Maryland's flood disclosure requirement begin?

Chapter 776 of Maryland's 2026 laws adds a separate flood-risk disclosure obligation for covered residential sales beginning July 1, 2027, before entering a contract.

Should I wait until a buyer asks about the association?

I'd rather prepare earlier. Know whether the current study and financial information are available, what significant work is being discussed, and who can answer questions. Preparation won't guarantee a sale, but it can prevent avoidable confusion.

Can I assume a well-maintained building has strong reserves?

I wouldn't make that assumption. Appearance, maintenance, and financial preparation are related questions, but you need the documents to understand how the association is planning for future work.

Prepare the paperwork before it becomes a problem

If you're considering selling an Ocean City condo, let's discuss the property's history and the association documents alongside pricing and preparation. We'll help you identify what to gather, which questions need answers, and where additional professional guidance is appropriate.

Contact The Fritschle Barker Group to discuss preparing your property for sale.

Last updated: October 30, 2026.