The first paragraph states that Section 10-702 of MD code requires the owner of certain residential real property to furnish either a Disclaimer or Disclosure statement, therefore they must complete the appropriate section of the the dual purpose form.Even if the seller opts to go with the disclaimer statement and sell "AS IS" this does not relieve them from providing a full list of known latent defects.  

There could be any number of procedural defects that make the lien invalid, or the lien could be exaggerated.  

Not to steal Steve's thunder on this matter but in general @Randi Del Gatto there are some defects in this asset which act as barriers to enforcing the instrument used which was a Contract For Deed not simply a Mortgage or Deed of Trust.  

Hopefully, you had a home inspection done by a certified home inspector, and you received a certified inspection report with color photos describing each defect.

I can walk through a house and see any defects that need to be addressed.

To me, this is a huge liability for it can be seen as "defective material".  

Here in Vancouver, and more so in Portland, properties "go fast" because those that are interested want to lock them up immediately, and then they use the offer/contract they submit to weed through the property for defects.

The deadbolt lock thats on the house is defective ?  

I personally only like properties 1950 or newer, but also still need to scrutinize to rule out properties that have Poly-butyl plumbing or aluminum wiring, both of which require immediate replacement due to defects or fire concerns.

It has been our experience that such appliances usually fail within the warranty period (manufacturing defect) or failures from use occur  5-8+ years out.