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