Sales of Residential Real Property - Offers to Purchase and Transfer Tax
In addition to regulating offers, the bill modifies the Maryland state transfer tax for transactions involving improved single-home residential real properties. For properties sold to larger real estate enterprises—those with significant holdings or assessed value—the state transfer tax rate increases substantially to 15%. This change is designed to disincentivize large-scale acquisitions of residential properties, fostering opportunities for individual buyers and smaller community-focused organizations.
House Bill 1345 focuses on the sale of residential real property in Maryland, particularly improving the transparency and fairness of offers to purchase. The bill stipulates that during the first 30 days a property is on the market, sellers can only accept offers from individual buyers, community development organizations, nonprofit organizations, or from real estate enterprises that own less than 10% of residential properties in the same county. This provision is aimed at preventing large real estate enterprises from monopolizing the housing market early in the sales process.
Debate around HB 1345 has highlighted differing perspectives on the balance between market regulation and property rights. Supporters argue that the bill provides necessary protections for individual buyers against corporate dominance in the housing market, allowing communities to maintain a more diverse and accessible range of housing options. Opponents, however, may view the measures as encroaching on property owners' rights to sell to whom they wish, suggesting that such limitations could deter investment and reduce overall market efficiency.