If you’re buying or selling a home in state of Maryland, the property inspection procedure can be an essential moment in the deal. While there is no such official “pass/fail” during the inspection, it is common to refer to a situation where substantial issues are uncovered as a “failed” inspection. A home inspection doesn’t assurance a perfect property, but it does provide significant insights into its condition. So, what happens if the inspection discloses major problems? Does a “failed” inspection mean that the end of the deal, or is there room for negotiation? Let’s break it down and know what Maryland homebuyers and sellers need to know when a property inspection reveals serious issues.
What Does It Mean When a Home Inspection Fails in Maryland?
In Maryland, a “failed” home appraisal or inspection typically refers to conditions where serious issues are identified, such as structural inspections revealing foundational cracks or substantial mold growth discovered during a home assessment. While these issues don’t repeatedly mean the deal is off, they often lead to renegotiations between the home buyer and seller.
It’s important to note that in Maryland, a property assessment may be directed by the buyer’s lender to determine the market value of the property for financing purposes, but this is different from the home check-up provided by a qualified pre-purchase inspection.
Is a Home Inspection Required by Law in Maryland?
While a property inspection is not lawfully required in Maryland, it’s highly recommended for any potential homebuyer. Maryland law does require sellers to provide a property disclosure statement, which summarizes known issues with the home. However, this revelation doesn’t substitute the need for an independent home evaluation, as buyers can’t always rely on the seller’s assessment.
Common Reasons a Home Inspection Can Fail in Maryland
Several issues can lead to an unsuccessful housing inspection in Maryland. Here are some of the most common:
1. Structural Problems
Cracks in the foundation or issues with load-bearing walls can be serious, particularly in Maryland’s humid climate, which can cause water damage or destruction over time. A building inspection will look for these types of issues, which could affect the overall stability of the home.
2. Electrical or Plumbing Issues
Older homes in Maryland may have outdated electrical systems that don’t meet current safety codes, which can lead to a failed home assessment. Similarly, plumbing problems, such as leaks, old pipes, or inadequate drainage, are often discovered during a residential inspection and may require expensive repairs.
3. Mold and Environmental Hazards
Due to Maryland’s humid climate, mold growth is common in older homes, especially in basements or attics. A home evaluation will check for signs of mold and other environmental hazards like radon or asbestos. Lead paint is another common concern in homes built before 1978.
4. Roofing and HVAC Issues
Home check-ups often reveal problems with the roof or heating and cooling systems. Maryland’s varied weather, including snow, heavy rain, and humidity, can wear out roofing materials. An HVAC inspection may also reveal that the system is outdated or not functioning properly, leading to higher costs for repairs or replacement.
5. Pest Infestations
Termites are common in Maryland, especially in wooded areas, and they can do extensive damage to a home’s structure. A pre-purchase inspection will often check for signs of termite damage or other pest-related issues that could impact the home’s condition.
What Happens After a Home Inspection Fails in Maryland?
When a residential inspection fails, there are several options for both buyers and sellers to consider. Here’s a breakdown of what typically happens next:
1. Negotiation
After the property inspection reveals major issues, the buyer may request that the seller make repairs before closing. If the seller is unwilling or unable to make repairs, the buyer can request a price reduction or ask for a credit at closing to cover repair costs.
Sellers also have the option to negotiate. They can agree to make the repairs, offer a discount on the price, or provide a credit to the buyer at closing to handle the repairs. If neither party agrees, the contract may be terminated.
2. Maryland Real Estate Contracts and Inspection Contingencies
In Maryland, most real estate contracts include an inspection contingency, which allows the buyer to back out of the deal or request repairs based on the results of the home check-up. This contingency is often valid for a specific period (usually 7–10 days), after which the buyer must decide whether to proceed with the purchase or walk away.
3. Legal Considerations
Maryland law requires sellers to disclose known issues with the property through a property disclosure statement. If a seller fails to disclose significant defects that are later uncovered during the home appraisal or building inspection, the buyer may have legal grounds to terminate the contract or seek compensation.
How Buyers Can Protect Themselves During a Maryland Home Purchase
If you’re a buyer in Maryland, here are some important steps to protect yourself during the housing inspection process:
1. Ensure an Inspection Contingency is Included
Always make sure that the pre-purchase inspection eventuality is clearly stated in your contract. This clause allows you to renegotiate or walk away from the deal if significant issues are discovered during the home assessment.
2. Hire a Qualified Inspector
It’s important to hire a licensed and experienced inspector familiar with Maryland’s unique housing conditions. A professional property inspector will look for hidden issues, such as mold, electrical problems, or structural defects, which could lead to a failed house inspection.
3. Carefully Review the Property Disclosure Statement
Maryland requires sellers to provide a property disclosure statement, which can give you a heads-up on potential issues before the residential inspection takes place. However, this document isn’t foolproof, so an independent home check-up is still necessary.
Seller’s Guide: What to Do if Your Home Fails Inspection in Maryland
As a seller in Maryland, there are steps you can take to address a failed property
inspection and keep the sale moving forward:
1. Get a Pre-Listing Inspection
Consider having a home evaluation done before listing your property. A pre-purchase inspection can help identify any problems early on, allowing you to address them before buyers see the home.
2. Respond to the Buyer’s Requests
After the building inspection, you can choose to make the necessary repairs, reduce the price, or offer a credit to the buyer at closing. Be prepared to negotiate and consider the severity of the issues when deciding how to respond.
3. Understand Your Disclosure Obligations
In Maryland, sellers are required to provide a property disclosure statement. It’s crucial to be transparent about any issues you know of to avoid potential legal trouble down the line.
Conclusion: Handling a Failed Home Inspection in Maryland
A failed home assessment or property inspection doesn’t necessarily end the home-buying process in Maryland, but it can complicate things. Buyers and sellers in Maryland need to be proactive, communicate effectively, and understand their legal rights and obligations. Whether you’re dealing with a structural inspection failure or a mold issue, a failed home check-up can usually be worked through with the right strategy.
Ready to Navigate Your Maryland Home Inspection? Whether you’re buying or selling, an experienced real estate agent can help you navigate the inspection process, from handling issues uncovered during a building inspection to negotiating the best terms for all parties. Reach out today to learn more about how we can assist you with your Maryland real estate needs!