Maryland • District of Columbia • Virginia
Quick Reference Guide for Licensees
This guide summarizes the key material fact disclosure obligations for real estate licensees in:
- Maryland
- District of Columbia
- Virginia
This is a general compliance overview and is not legal advice.
What Is a “Material Fact”?
A material fact is information that:
- A reasonable buyer or seller would consider important in deciding whether to enter into a transaction, OR
- Could affect the value, desirability, or intended use of the property.
Examples may include:
- Known structural defects
- Roof, foundation, or water intrusion issues
- Environmental hazards
- Legal or zoning restrictions affecting use
- Pending condemnation or governmental action
Maryland
Standard
Licensees must disclose material facts they know or reasonably should know about a property.
Key Duties
- Disclose known defects.
- Avoid concealment or misrepresentation.
- Treat all parties honestly and fairly.
- Provide required written agency relationship disclosures.
Practical Tip
If you are aware of a material issue, disclose it. Silence can create liability if the issue is material and known.
District of Columbia
Standard
Licensees must disclose material facts they have actual knowledge of.
Key Duties
- Sellers’ agents must disclose known material defects to prospective buyers.
- Buyers’ agents must disclose known material facts to their clients.
- No knowingly false statements.
- Required written brokerage relationship disclosures.
Practical Tip
D.C. focuses on actual knowledge. If you know it, disclose it.
Virginia
Standard
Licensees must disclose material facts they have actual knowledge of.
Key Duties
- Known physical defects must be disclosed.
- Misrepresentation and concealment are prohibited.
- Required written disclosures in certain circumstances.
Practical Tip
You are not required to discover unknown latent defects — but if you know about it, you must disclose it.
Risk Management Checklist
✔ When in doubt, disclose.
✔ Never conceal known defects.
✔ Make required agency disclosures early and in writing.
✔ If you have any ownership interest — disclose in writing.
✔ Document all disclosures in your transaction file.
✔ Follow brokerage policy and MLS rules in addition to statute.
Final Reminder
Failure to disclose material facts or license status when required can result in:
- License discipline
- Civil liability
- Contract rescission
- Ethics complaints
- Reputational harm
NOTE: This is intended as a general summary only and is not to be relied upon as legal advice in connection with any specific transaction.
