LAWRENCE J. HOGAN, JR., Governor Ch. 326
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Chapter 326
(House Bill 91)
AN ACT concerning
Irredeemable Ground Rent s – Notice and Filing Requirements
FOR the purpose of requiring the online registry of properties subject to ground leases
maintained by the State Department of Assessments and Taxation to include certain
information; requiring the holder of an irredeemable ground rent to file a renewal
notice of intention to preserve irredeemability of the ground rent with the
Department within a certain period of time; and generally relating to ground leases
and ground rents.
BY repealing and reenacting, with amendments,
Article – Real Property
Section 8–703 and 8–805
Annotated Code of Maryland
(2015 Replacement Volume and 2021 Supplement)
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
That the Laws of Maryland read as follows:
Article – Real Property
8–703.
(a) (1) The Department shall maintain an online registry of ALL properties
that are subject to ground leases.
(2) THE ONLINE REGISTRY S HALL:
(I) IDENTIFY PROPERTIES FOR WHICH A RENEWAL NOTI CE TO
PRESERVE THE IRREDEE MABILITY OF AN IRRED EEMABLE GROUND LEASE HAS BEEN
FILED; AND
(II) INCLUDE A CLEAR NOTAT ION OF THE EXPIRATIO N DATE
FOR EACH RENEWAL NOT ICE.
(b) The Department is not responsible for the completeness or accuracy of the
contents of the online registry.
8–805.
(a) (1) In this section the following words have the meanings indicated. Ch. 326 2022 LAWS OF MARYLA ND
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(2) “DEPARTMENT ” MEANS THE STATE DEPARTMENT OF
ASSESSMENTS AND TAXATION.
(3) “Irredeemable ground rent” means a ground rent created under a
ground lease executed before April 9, 1884, that does not contain a provision allowing the
leasehold tenant to redeem the ground rent.
[(3)] (4) “Redeemable ground rent” means a ground rent that may be
redeemed in accordance with this section or redeemed or extinguished in accordance with
§ 8–804(f) of this subtitle.
(b) (1) An irredeemable ground rent shall be converted to, and become, a
redeemable ground rent, unless within the [time] TIMES specified in subsection (e) of this
section, a notice of intention to preserve irredeemability is recorded AMONG THE LAND
RECORDS OF THE COUNT Y WHERE THE PROPERTY IS LOCATED AND FILED WITH THE
DEPARTMENT .
(2) The conversion of an irredeemable ground rent to a redeemable ground
rent occurs on the day following the end of the period in which the notice may be recorded
AMONG THE LAND RECOR DS OF THE COUNTY WHE RE THE PROPERTY IS L OCATED OR
FILED WITH THE DEPARTMENT .
(3) A disability or lack of knowledge of any kind does not prevent the
conversion of an irredeemable ground rent to a redeemable ground rent if no notice of
intention to preserve irredeemability is filed within the [time] TIMES specified in
subsection (e) of this section.
(c) (1) Any ground lease holder of an irredeemable ground rent may record a
notice of intention to preserve irredeemability among the land records of the county where
the land is located.
(2) The notice may be recorded by:
(i) The person claiming to be the ground lease holder; or
(ii) If the ground lease holder is under a disability or otherwise
unable to assert a claim on the ground lease holder’s own behalf, any other person acting
on the ground lease holder’s behalf.
(d) (1) To be effective and to be entitled to be recorded, the notice shall be
executed by the ground lease holder, acknowledged before a notary public, and contain
substantially the following information:
LAWRENCE J. HOGAN, JR., Governor Ch. 326
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(i) An accurate description of the leasehold interest affected by the
notice, including, if known, the property improvement address;
(ii) The name of every ground lease holder of an irredeemable ground
rent;
(iii) The name of every leasehold tenant as of the time the notice is
filed according to the land records or the records of the State Department of Assessments
and Taxation;
(iv) The recording reference of the ground lease;
(v) The recording reference of every leasehold tenant’s leasehold
deed, as of the time the notice is filed, according to the land records or the records of the
State Department of Assessments and Taxation;
(vi) The recording reference of every irredeemable ground rent
ground lease holder’s deed; and
(vii) The block number for the leasehold interest if the property is
located in Baltimore City.
(2) (i) A notice that substantially meets the requirements of this section
shall be accepted for recording among the land records on payment of the same fees as are
charged for the recording of deeds.
(ii) The filing of a notice is exempt from the imposition of a State or
local excise tax.
(3) The notice shall be indexed as “Notice of Intention to Preserve
Irredeemability”:
(i) In the grantee indices of deeds under the name of every ground
lease holder of an irredeemable ground rent;
(ii) In the grantor indices of deeds under the name of every leasehold
tenant as of the time the notice is filed according to the land records or the records of the
State Department of Assessments and Taxation; and
(iii) In the block index in Baltimore City.
(e) (1) To preserve the irredeemability of an irredeemable ground rent, a
notice of intention to preserve shall be recorded on or before December 31, 2010.
(2) If a notice of intention to preserve is not recorded on or before December
31, 2010, the ground rent becomes a redeemable ground rent. Ch. 326 2022 LAWS OF MARYLA ND
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(3) If a notice is recorded on or before December 31, 2010, the ground rent
shall remain irredeemable for a period of 10 years from January 1, 2011, to December 31,
2020, both inclusive.
(4) (i) The effectiveness of a filed notice to preserve irredeemability
shall lapse on January 1, 2021, and the ground rent shall become a redeemable ground
rent, unless [a]:
1. A renewal notice containing substantially the same
information as the notice of intention to preserve irredeemability is recorded within 6
months before the expiration of the 10–year period set forth in paragraph (3) of this
subsection; AND
2. THE RENE WAL NOTICE IS FILED WITH THE
DEPARTMENT ON OR BEFO RE APRIL 1, 2023.
(ii) The effectiveness of any subsequently filed renewal notice shall
lapse after the expiration of the applicable 10–year period and the ground rent shall become
a redeemable ground rent, unless [further]:
1. FURTHER renewal notices are recorded within 6 months
before the expiration of the applicable 10–year period; AND
2. EACH RENEWAL NOTICE IS FILED WITH THE
DEPARTMENT WITHIN 3 MONTHS AFTER THE DATE OF RECORDATION IN THE LAND
RECORDS.
(f) A ground rent made redeemable in accordance with this section:
(1) Is redeemable at any time following the date of conversion of the
irredeemable ground rent to a redeemable ground rent; and
(2) Shall be redeemable for a sum equal to the annual rent reserved
multiplied by 16.66, which is capitalization at 6 percent.
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect
October 1, 2022.
Approved by the Governor, May 12, 2022.