Maryland 2022 Regular Session

Maryland Senate Bill SB967 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2
3	3	EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
4	4	[Brackets] indicate matter deleted from existing law.
5	5	sb0967
6	6
7	7	SENATE BILL 967
8	8	Q1 2lr3049
9	9
10	10	By: Senator Edwards
11	11	Introduced and read first time: February 15, 2022
12	12	Assigned to: Rules
13	13
14	14	A BILL ENTITLED
15	15
16	16	AN ACT concerning 1
17	17
18	18	Tax Sales – Final Judgments in Foreclosure Actions – Revisions 2
19	19
20	20	FOR the purpose of authorizing a court, under certain circumstances, to strike the final 3
21	21	judgment in a tax sale action foreclosing the right of redemption in a property and 4
22	22	grant the governing body of a county or a municipal corporation the right to pay the 5
23	23	balance of the purchase price due on the property; requiring a court to direct a tax 6
24	24	collector to execute a deed to the governing body of a county or a municipal 7
25	25	corporation on payment by the governing body of the purchase price due on the 8
26	26	property; requiring the governing body of a county or a municipal corporation to take 9
27	27	title to the property in a certain manner; applying this Act retroactively; and 10
28	28	generally relating to tax sale foreclosure actions. 11
29	29
30	30	BY repealing and reenacting, with amendments, 12
31	31	Article – Tax – Property 13
32	32	Section 14–847 14
33	33	Annotated Code of Maryland 15
34	34	(2019 Replacement Volume and 2021 Supplement) 16
35	35
36	36	SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 17
37	37	That the Laws of Maryland read as follows: 18
38	38
39	39	Article – Tax – Property 19
40	40
41	41	14–847. 20
42	42
43	43	(a) (1) (I) Except as provided in paragraph (2) of this subsection, the 21
44	44	judgment of the court shall direct the collector to execute a deed to the holder of the 22
45	45	certificate of sale in fee simple or in leasehold, as appropriate, on payment to the collector 23
46	46	of the balance of the purchase price, due on account of the purchase price of the property, 24
47	47	together with all taxes and interest and penalties on the property that accrue after the date 25 2 SENATE BILL 967
48	48
49	49
50	50	of sale. 1
51	51
52	52	(II) The judgment shall direct the supervisor to enroll the holder of 2
53	53	the certificate of sale in fee simple or in leasehold, as appropriate, as the owner of the 3
54	54	property. 4
55	55
56	56	(2) In Frederick County, if the collector is absent, the deed may be executed 5
57	57	by a deputy collector designated by the collector. 6
58	58
59	59	(b) The deed shall be prepared by the holder of the certificate of sale or the 7
60	60	attorney for the holder of the certificate of sale and all expenses incident to the preparation 8
61	61	and execution of the deed shall be paid by the holder of the certificate of sale. 9
62	62
63	63	(c) The clerk of the court in which the suit is instituted shall issue a certified copy 10
64	64	of the judgment of the court to the collector and supervisor and the collector is not obligated 11
65	65	to execute the deed provided for in this section until that certified copy of the judgment is 12
66	66	delivered to the collector. 13
67	67
68	68	(d) (1) If the holder of the certificate of sale does not comply with the terms of 14
69	69	the final judgment of the court within 90 days as to payments to the collector of the balance 15
70	70	of the purchase price due on account of the purchase price of the property and of all taxes, 16
71	71	interest, and penalties that accrue after the date of sale, that judgment may be stricken by 17
72	72	the court on the motion of an interested party for good cause shown. 18
73	73
74	74	(2) In Baltimore City, a certificate holder who has been enrolled as the 19
75	75	owner of the property under subsection (a) of this section is not an interested party within 20
76	76	the meaning of this subsection. 21
77	77
78	78	(E) (1) IF THE HOLDER OF THE CE RTIFICATE OF SALE DOES NOT COMPLY 22
79	79	WITH THE TERMS OF TH E FINAL JUDGMENT OF THE COURT WITHIN 120 DAYS AS TO 23
80	80	PAYMENTS TO THE COLLECTOR OF THE BALANCE OF THE P URCHASE PRICE DUE ON 24
81	81	ACCOUNT OF THE PURCH ASE PRICE OF THE PRO PERTY AND OF ALL TAXES , 25
82	82	INTEREST, AND PENALTIES THAT A CCRUE AFTER THE DATE OF SALE, THE COURT 26
83	83	MAY, ON MOTION OF THE GOV ERNING BODY OF THE C OUNTY OR THE MUNICIP AL 27
84	84	CORPORATION IN WHICH THE PROPERT Y IS LOCATED, FOR GOOD CAUSE SHOWN : 28
85	85
86	86	(I) STRIKE THE FINAL JUD GMENT OF THE COURT; AND 29
87	87
88	88	(II) GRANT THE GOVERNING BODY OF THE COUNTY O R THE 30
89	89	MUNICIPAL CORPORATIO N THE RIGHT TO PAY T HE BALANCE OF THE PU RCHASE 31
90	90	PRICE DUE. 32
91	91
92	92	(2) ON PAYMENT TO THE COL LECTOR OF THE BALANC E OF THE 33
93	93	PURCHASE PRICE DUE : 34
94	94	SENATE BILL 967 3
95	95
96	96
97	97	(I) THE COURT SHALL DIRECT THE COLLECTOR TO EXECUTE A 1
98	98	DEED PREPARED BY AND TO THE GOVERNING BOD Y OF THE COUNTY OR T HE 2
99	99	MUNICIPAL CORPORATIO N IN FEE SIMPLE OR IN LEASEHOLD, AS APPROPRIATE ; AND 3
100	100
101	101	(II) THE GOVERNING BODY O F THE COUNTY OR THE MUNICIPAL 4
102	102	CORPORATION SHALL TA KE TITLE TO THE PROPERTY : 5
103	103
104	104	1. IN FEE SIMPLE , FREE AND CLEAR OF AL L 6
105	105	ALIENATIONS AND DESC ENTS OF THE PROPERTY OCCURRING BEFORE THE DATE OF 7
106	106	THE FINAL JUDGMENT AND ENCUMBR ANCES ON THE PROPERT Y, EXCEPT ANY 8
107	107	OTHER EASEMENT THAT MAY BE OBSERVED BY A N INSPECTION OF THE PROPERTY 9
108	108	TO WHICH THE PROPERT Y IS SUBJECT; OR 10
109	109
110	110	2. IF THE COLLECTOR SOLD T HE PROPERTY SUBJECT TO 11
111	111	A GROUND RENT OR THE HOLDER OF THE CERTIF ICATE OF SALE ELECTE D NOT TO 12
112	112	INCLUDE THE GROUND R ENT HOLDER AS A PART Y IN THE FORECLOSURE ACTION, IN 13
113	113	LEASEHOLD. 14
114	114
115	115	SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall be construed to 15
116	116	apply retroactively and shall be applied to and interpreted to affect tax sale actions 16
117	117	foreclosing the right of redemption in properties that are pending on enactment of this Act. 17
118	118
119	119	SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect June 18
120	120	1, 2022. 19
121	121