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REPORTED IN THE COURT OF SPECIAL APPEALS OF MARYLAND

No. 253 September Term, 2006

GEORGE STRATAKOS, ET UX. v. STEVEN J. PARCELLS, ET UX.

Murphy, C.J. Krauser, Barbera, JJ.

Opinion by Barbera, J.

Filed: January 30, 2007

In this appeal, we construe a clause of a real estate contract that provides for the award of attorney's fees to a party to the contract who prevails in a dispute "arising out of" the contract. In particular, we must decide if a lawsuit by the buyers alleging that the sellers made false or negligent representations in the Maryland Residential Property Disclosure Statement is a dispute arising out of the real estate contract, notwithstanding that the disclosure statement was not made part of the contract. The

Circuit Court for Montgomery County (Mason, J.) concluded that the suit was such a dispute and, pursuant to the contract, awarded attorney's fees to the sellers as the prevailing parties. For the reasons that follow, we agree with the circuit court's legal conclusion and therefore affirm the fee award. FACTS In December 2000, George Stratakos and Jami Rankin,

appellants, purchased from Steven J. Parcells and Harriet Parcells, appellees, a parcel of improved residential property located in Montgomery County, Maryland ("the property"). The parties entered

into a written contract for the sale of the property. In connection with the sale, and in accordance with Maryland Code (1974, 2003 Repl. Vol., 2006 Supp.),

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Maryland Law