Legal Update: Maryland requires testing for private water systems

Important Update for Maryland Real Estate Transactions: Understanding MD Code, Real Property § 10-713 – Water Quality Testing as a Condition of Sale

It is important to ensure that real estate transactions comply with the latest regulations pursuant to Maryland Code, Real Property § 10-713 .

Effective October 1, 2024, § 10-713 mandates water quality testing as a condition of sale for properties served by private water systems, including wells. This law applies particularly to rural or suburban properties where public water systems aren’t available, and the responsibility falls on the seller to ensure compliance.

What Realtors Need to Know:

1. Condition of Sale: Sellers are required to test the water quality of private wells before finalizing the sale of the property. The results must be provided to the buyer prior to settlement. A buyer may waive the water quality testing requirements, but the waiver must be in writing.

Settlement may not occur if the vendor and the purchaser have not each certified in writing that they have received and reviewed the results of the water quality testing; or the buyer has not waived the requirement in writing.

1. Testing Standards: The law requires the testing to cover contaminants like bacteria, nitrates, and other hazardous substances. The exact parameters may vary depending on the location of the property and local health department requirements.
2. Disclosure Obligation: Sellers must disclose the results of the water quality test in writing to the buyer. Failure to do so can lead to delays or present a voidable transaction.
3. Timeline for Compliance: Realtors should ensure that sellers arrange for testing early in the sales process, as it can take time to schedule tests and receive results. Delays could jeopardize a timely closing.
4. Impact on Financing: If the water test reveals unsafe levels of contamination, this can affect the buyer’s financing options or cause further negotiations, such as repairs or filtration systems.

Key Takeaways for Realtors:

• Educate Sellers: Make sure your seller clients are aware of this requirement early in the listing process to avoid surprises down the line.
• Coordinate with Buyers: Ensure buyers understand the importance of the test results and the impact they may have on their decision to move forward with the purchase.
• Work with Professionals: Identify licensed well water testing companies who are familiar with the regulatory requirements and provide comprehensive testing.

MD Code, Real Property § 10-713 is designed to protect buyers and promote safe, clean drinking water for occupants, but compliance is key to a smooth transaction. Realtors  can help ensure a seamless process for their clients getting familiar with these new requirements

Stay informed, and feel free to reach out with any questions about how this law impacts your transactions. As title professionals, we’re here to help!