EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*hb0091*
HOUSE BILL 91
N1 2lr0756
(PRE–FILED)
By: Delegate Holmes
Requested: October 12, 2021
Introduced and read first time: January 12, 2022
Assigned to: Environment and Transportation
A BILL ENTITLED
AN ACT concerning 1
Irredeemable Ground Rent s – Notice and Filing Requirements 2
FOR the purpose of requiring the online registry of properties subject to ground leases 3
maintained by the State Department of Assessments and Taxation to include certain 4
information; requiring the holder of an irredeemable ground rent to file a renewal 5
notice of intention to preserve irredeemability of the ground rent with the 6
Department within a certain period of time; and generally relating to ground leases 7
and ground rents. 8
BY repealing and reenacting, with amendments, 9
Article – Real Property 10
Section 8–703 and 8–805 11
Annotated Code of Maryland 12
(2015 Replacement Volume and 2021 Supplement) 13
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 14
That the Laws of Maryland read as follows: 15
Article – Real Property 16
8–703. 17
(a) (1) The Department shall maintain an online registry of ALL properties 18
that are subject to ground leases. 19
(2) THE ONLINE REGISTRY S HALL: 20
2 HOUSE BILL 91
(I) IDENTIFY PROPERTIES FOR WHICH A RENEWAL NOTI CE TO 1
PRESERVE THE IRREDEE MABILITY OF AN IRRED EEMABLE GROUND LEASE HAS BEEN 2
FILED; AND 3
(II) INCLUDE A CLEAR NOTAT ION OF THE EXPIRATIO N DATE 4
FOR EACH RENEWAL NOT ICE. 5
(b) The Department is not responsible for the completeness or accuracy of the 6
contents of the online registry. 7
8–805. 8
(a) (1) In this section the following words have the meanings indicated. 9
(2) “DEPARTMENT ” MEANS THE STATE DEPARTMENT OF 10
ASSESSMENTS AND TAXATION. 11
(3) “Irredeemable ground rent” means a ground rent created under a 12
ground lease executed before April 9, 1884, that does not contain a provision allowing the 13
leasehold tenant to redeem the ground rent. 14
[(3)] (4) “Redeemable ground rent” means a ground rent that may be 15
redeemed in accordance with this section or redeemed or extinguished in accordance with 16
§ 8–804(f) of this subtitle. 17
(b) (1) An irredeemable ground rent shall be converted to, and become, a 18
redeemable ground rent, unless within the [time] TIMES specified in subsection (e) of this 19
section, a notice of intention to preserve irredeemability is recorded AMONG THE LAND 20
RECORDS OF THE COUNT Y WHERE THE PROPERTY IS LOCATED AND FILED WITH THE 21
DEPARTMENT . 22
(2) The conversion of an irredeemable ground rent to a redeemable ground 23
rent occurs on the day following the end of the period in which the notice may be recorded 24
AMONG THE LAND RECOR DS OF THE COUNTY WHE RE THE PROPERTY IS L OCATED OR 25
FILED WITH THE DEPARTMENT . 26
(3) A disability or lack of knowledge of any kind does not prevent the 27
conversion of an irredeemable ground rent to a redeemable ground rent if no notice of 28
intention to preserve irredeemability is filed within the [time] TIMES specified in 29
subsection (e) of this section. 30
(c) (1) Any ground lease holder of an irredeemable ground rent may record a 31
notice of intention to preserve irredeemability among the land records of the county where 32
the land is located. 33
HOUSE BILL 91 3
(2) The notice may be recorded by: 1
(i) The person claiming to be the ground lease holder; or 2
(ii) If the ground lease holder is under a disability or otherwise 3
unable to assert a claim on the ground lease holder’s own behalf, any other person acting 4
on the ground lease holder’s behalf. 5
(d) (1) To be effective and to be entitled to be recorded, the notice shall be 6
executed by the ground lease holder, acknowledged before a notary public, and contain 7
substantially the following information: 8
(i) An accurate description of the leasehold interest affected by the 9
notice, including, if known, the property improvement address; 10
(ii) The name of every ground lease holder of an irredeemable ground 11
rent; 12
(iii) The name of every leasehold tenant as of the time the notice is 13
filed according to the land records or the records of the State Department of Assessments 14
and Taxation; 15
(iv) The recording reference of the ground lease; 16
(v) The recording reference of every leasehold tenant’s leasehold 17
deed, as of the time the notice is filed, according to the land records or the records of the 18
State Department of Assessments and Taxation; 19
(vi) The recording reference of every irredeemable ground rent 20
ground lease holder’s deed; and 21
(vii) The block number for the leasehold interest if the property is 22
located in Baltimore City. 23
(2) (i) A notice that substantially meets the requirements of this section 24
shall be accepted for recording among the land records on payment of the same fees as are 25
charged for the recording of deeds. 26
(ii) The filing of a notice is exempt from the imposition of a State or 27
local excise tax. 28
(3) The notice shall be indexed as “Notice of Intention to Preserve 29
Irredeemability”: 30
(i) In the grantee indices of deeds under the name of every ground 31
lease holder of an irredeemable ground rent; 32
4 HOUSE BILL 91
(ii) In the grantor indices of deeds under the name of every leasehold 1
tenant as of the time the notice is filed according to the land records or the records of the 2
State Department of Assessments and Taxation; and 3
(iii) In the block index in Baltimore City. 4
(e) (1) To preserve the irredeemability of an irredeemable ground rent, a 5
notice of intention to preserve shall be recorded on or before December 31, 2010. 6
(2) If a notice of intention to preserve is not recorded on or before December 7
31, 2010, the ground rent becomes a redeemable ground rent. 8
(3) If a notice is recorded on or before December 31, 2010, the ground rent 9
shall remain irredeemable for a period of 10 years from January 1, 2011, to December 31, 10
2020, both inclusive. 11
(4) (i) The effectiveness of a filed notice to preserve irredeemability 12
shall lapse on January 1, 2021, and the ground rent shall become a redeemable ground 13
rent, unless [a]: 14
1. A renewal notice containing substantially the same 15
information as the notice of intention to preserve irredeemability is recorded within 6 16
months before the expiration of the 10–year period set forth in paragraph (3) of this 17
subsection; AND 18
2. THE RENEWAL NOTICE IS FILED WITH THE 19
DEPARTMENT ON OR BEFO RE APRIL 1, 2023. 20
(ii) The effectiveness of any subsequently filed renewal notice shall 21
lapse after the expiration of the applicable 10–year period and the ground rent shall become 22
a redeemable ground rent, unless [further]: 23
1. FURTHER renewal notices are recorded within 6 months 24
before the expiration of the applicable 10–year period; AND 25
2. EACH RENEWAL NOTICE IS FILED WITH THE 26
DEPARTMENT WITHIN 3 MONTHS AFTER THE DATE OF RECORDATION IN THE LAND 27
RECORDS. 28
(f) A ground rent made redeemable in accordance with this section: 29
(1) Is redeemable at any time following the date of conversion of the 30
irredeemable ground rent to a redeemable ground rent; and 31
(2) Shall be redeemable for a sum equal to the annual rent reserved 32
multiplied by 16.66, which is capitalization at 6 percent. 33 HOUSE BILL 91 5
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 1
October 1, 2022. 2