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