EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*hb0703*
HOUSE BILL 703
N1 2lr2301
CF SB 563
By: Delegate Lehman
Introduced and read first time: January 31, 2022
Assigned to: Judiciary
A BILL ENTITLED
AN ACT concerning 1
Real Property – Actions to Repossess – Judgment for Tenants and Proof of 2
Rental Licensure 3
FOR the purpose of authorizing the District Court to find in favor of the tenant and award 4
costs and expenses in an action to repossess residential rental property for a certain 5
breach of lease assertion made in bad faith or without substantial justification; 6
requiring a landlord to submit to the clerk of the court evidence of compliance with 7
certain local rental property licensure requirements and prove in court by a certain 8
evidentiary standard that the landlord is compliant with the licensure requirements; 9
and generally relating to actions to repossess property. 10
BY repealing and reenacting, without amendments, 11
Article – Real Property 12
Section 8–401(a) and (b)(1) 13
Annotated Code of Maryland 14
(2015 Replacement Volume and 2021 Supplement) 15
BY repealing and reenacting, with amendments, 16
Article – Real Property 17
Section 8–401(b)(2), 8–402(b)(1)(i), and 8–402.1 18
Annotated Code of Maryland 19
(2015 Replacement Volume and 2021 Supplement) 20
BY adding to 21
Article – Real Property 22
Section 8–406 23
Annotated Code of Maryland 24
(2015 Replacement Volume and 2021 Supplement) 25
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 26
That the Laws of Maryland read as follows: 27 2 HOUSE BILL 703
Article – Real Property 1
8–401. 2
(a) Whenever the tenant or tenants fail to pay the rent when due and payable, it 3
shall be lawful for the landlord to have again and repossess the premises in accordance 4
with this section. 5
(b) (1) Whenever any landlord shall desire to repossess any premises to which 6
the landlord is entitled under the provisions of subsection (a) of this section, the landlord 7
or the landlord’s duly qualified agent or attorney shall ensure that the landlord has 8
completed the procedures required under subsection (c) of this section. 9
(2) [After] SUBJECT TO § 8–406 OF THIS SUBTITLE AND AFTER 10
completing the procedures required under subsection (c) of this section, a landlord or the 11
landlord’s duly qualified agent or attorney may file the landlord’s written complaint under 12
oath or affirmation, in the District Court of the county wherein the property is situated: 13
(i) Describing in general terms the property sought to be 14
repossessed; 15
(ii) Setting forth the name of each tenant to whom the property is 16
rented or any assignee or subtenant; 17
(iii) Stating the amount of rent and any late fees due and unpaid, less 18
the amount of any utility bills, fees, or security deposits paid by a tenant under § 7–309 of 19
the Public Utilities Article; 20
(iv) Requesting to repossess the premises and, if requested by the 21
landlord, a judgment for the amount of rent due, costs, and any late fees, less the amount 22
of any utility bills, fees, or security deposits paid by a tenant under § 7–309 of the Public 23
Utilities Article; 24
(v) If applicable, stating that, to the best of the landlord’s knowledge, 25
the tenant is deceased, intestate, and without next of kin; and 26
(vi) If the property to be repossessed is an affected property as 27
defined in § 6–801 of the Environment Article, stating that the landlord has registered the 28
affected property as required under § 6–811 of the Environment Article and renewed the 29
registration as required under § 6–812 of the Environment Article and: 30
1. A. If the current tenant moved into the property on or 31
after February 24, 1996, stating the inspection certificate number for the inspection 32
conducted for the current tenancy as required under § 6–815(c) of the Environment Article; 33
or 34
HOUSE BILL 703 3
B. On or after February 24, 2006, stating the inspection 1
certificate number for the inspection conducted for the current tenancy as required under 2
§ 6–815(c), § 6–817(b), or § 6–819(f) of the Environment Article; or 3
2. Stating that the owner is unable to provide an inspection 4
certificate number because: 5
A. The owner has requested that the tenant allow the owner 6
access to the property to perform the work required under Title 6, Subtitle 8 of the 7
Environment Article; 8
B. The owner has offered to relocate the tenant in order to 9
allow the owner to perform work if the work will disturb the paint on the interior surfaces 10
of the property and to pay the reasonable expenses the tenant would incur directly related 11
to the relocation; and 12
C. The tenant has refused to allow access to the owner or 13
refused to vacate the property in order for the owner to perform the required work. 14
8–402. 15
(b) (1) (i) [Where] SUBJECT TO § 8–406 OF THIS SUBTITLE AND WHERE 16
any tenancy is for any definite term or at will, and the landlord shall desire to repossess 17
the property after the expiration of the term for which it was leased and shall give notice 18
as required under subsection (c) of this section to the tenant or to the person actually in 19
possession of the property to remove from the property at the end of the term, and if the 20
tenant or person in actual possession shall refuse to comply, the landlord may make 21
complaint in writing to the District Court of the county where the property is located. 22
8–402.1. 23
(a) (1) (i) [Where] SUBJECT TO § 8–406 OF THIS SUBTITLE AND WHERE 24
an unexpired lease for a stated term provides that the landlord may repossess the premises 25
prior to the expiration of the stated term if the tenant breaches the lease, the landlord may 26
make complaint in writing to the District Court of the county where the premises is located 27
if: 28
1. The tenant breaches the lease; 29
2. A. The landlord has given the tenant 30 days’ written 30
notice that the tenant is in violation of the lease and the landlord desires to repossess the 31
leased premises; or 32
B. The breach of the lease involves behavior by a tenant or a 33
person who is on the property with the tenant’s consent, which demonstrates a clear and 34
imminent danger of the tenant or person doing serious harm to themselves, other tenants, 35
the landlord, the landlord’s property or representatives, or any other person on the property 36 4 HOUSE BILL 703
and the landlord has given the tenant or person in possession 14 days’ written notice that 1
the tenant or person in possession is in violation of the lease and the landlord desires to 2
repossess the leased premises; and 3
3. The tenant or person in actual possession of the premises 4
refuses to comply. 5
(ii) The court shall summons immediately the tenant or person in 6
possession to appear before the court on a day stated in the summons to show cause, if any, 7
why restitution of the possession of the leased premises should not be made to the landlord. 8
(2) (i) If, for any reason, the tenant or person in actual possession 9
cannot be found, the constable or sheriff shall affix an attested copy of the summons 10
conspicuously on the property. 11
(ii) After notice is sent to the tenant or person in possession by 12
first–class mail, the affixing of the summons on the property shall be conclusively presumed 13
to be a sufficient service to support restitution. 14
(3) If either of the parties fails to appear before the court on the day stated 15
in the summons, the court may continue the case for not less than six nor more than 10 16
days and notify the parties of the continuance. 17
(b) (1) If the court determines that the tenant breached the terms of the lease 18
and that the breach was substantial and warrants an eviction, the court shall give 19
judgment for the restitution of the possession of the premises and issue its warrant to the 20
sheriff or a constable commanding the tenant to deliver possession to the landlord in as full 21
and ample manner as the landlord was possessed of the same at the time when the lease 22
was entered into. The court shall give judgment for costs against the tenant or person in 23
possession. 24
(2) IF THE COURT DETERMIN ES THAT A LANDLORD A SSERTED A 25
BREACH OF LEASE UNDE R SUBSECTION (A)(1)(I)2B OF THIS SECTION IN B AD FAITH 26
OR WITHOUT SUBSTANTI AL JUSTIFICATION , THE COURT MAY ENTER JUDGMENT FOR 27
THE TENANT AND AWARD COSTS AND EXPENSES , INCLUDING ATTORNEY ’S FEES. 28
[(2)] (3) Either party may appeal to the circuit court for the county, 29
within ten days from entry of the judgment. If the tenant (i) files with the District Court 30
an affidavit that the appeal is not taken for delay; (ii) files sufficient bond with one or more 31
securities conditioned upon diligent prosecution of the appeal; (iii) pays all rent in arrears, 32
all court costs in the case; and (iv) pays all losses or damages which the landlord may suffer 33
by reason of the tenant’s holding over, the tenant or person in possession of the premises 34
may retain possession until the determination of the appeal. Upon application of either 35
party, the court shall set a day for the hearing of the appeal not less than five nor more 36
than 15 days after the application, and notice of the order for a hearing shall be served on 37
the other party or that party’s counsel at least five days before the hearing. If the judgment 38 HOUSE BILL 703 5
of the District Court is in favor of the landlord, a warrant shall be issued by the court which 1
hears the appeal to the sheriff, who shall execute the warrant. 2
(c) (1) Acceptance of any payment after notice but before eviction shall not 3
operate as a waiver of any notice of breach of lease or any judgment for possession unless 4
the parties specifically otherwise agree in writing. 5
(2) Any payment accepted shall be first applied to the rent or the 6
equivalent of rent apportioned to the date that the landlord actually recovers possession of 7
the premises, then to court costs, including court awarded damages and legal fees and then 8
to any loss of rent caused by the breach of lease. 9
(3) Any payment which is accepted in excess of the rent referred to in 10
paragraph (2) of this subsection shall not bear interest but will be returned to the tenant 11
in the same manner as security deposits as defined under § 8–203 of this title but shall not 12
be subject to the penalties of that section. 13
8–406. 14
(A) THIS SECTION APPLIES ONLY IN A COUNTY , MUNICIPALITY, OR OTHER 15
JURISDICTION THAT RE QUIRES A LICENSE FOR THE LAWFUL OPERATION OF 16
RESIDENTIAL RENTAL P ROPERTY. 17
(B) (1) EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS SUBSECTION , 18
ON THE FILING OF A W RITTEN COMPLAINT TO REPOSSESS RESIDENTIA L PROPERTY 19
UNDER § 8–401, § 8–402, OR § 8–402.1 OF THIS SUBTITLE , THE LANDLORD SHALL 20
SUBMIT TO THE CLERK OF THE DISTRICT COURT IN THE COUNTY W HERE THE 21
PROPERTY IS LOCATED RECORDS D EMONSTRATING THAT TH E PROPERTY IS: 22
(I) LICENSED IN COMPLIANC E WITH APPLICABLE LO CAL 23
RENTAL LICENSING REQ UIREMENTS; OR 24
(II) EXEMPT FROM APPLICABL E LOCAL RENTAL LICEN SING 25
REQUIREMENTS . 26
(2) THIS SUBSECTION DOES NOT APPLY TO AN ACTI ON TO REPOSSESS 27
FOR BREACH OF LEASE U NDER § 8–402.1(A)(1)(I)2B OF THIS SUBTITLE . 28
(C) (1) AT TRIAL, THE LANDLORD MUST PR OVE BY A PREPONDERAN CE OF 29
THE EVIDENCE THAT TH E PROPERTY LISTED IN THE WRITTEN COMPLAIN T IS 30
LICENSED WITH THE JU RISDICTION OR IS EXE MPT FROM APPLICABLE LICENSING 31
REQUIREMENTS . 32
(2) (I) TO SATISFY THE REQUIR EMENTS OF THIS SUBSE CTION, A 33
LANDLORD MAY PROVIDE ELECTRONIC PROOF OF LICENSURE. 34 6 HOUSE BILL 703
(II) A TEMPORARY OR PROVISI ONAL LICENSE IN ANY FORM IS 1
INSUFFICIENT PROOF O F LICENSURE. 2
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 3
October 1, 2022. 4