MD
Maryland House Bill HB118

Maryland 2023 Regular Session

Maryland House Bill HB118 Compare Versions

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1- WES MOORE, Governor Ch. 184
21
3-– 1 –
4-Chapter 184
5-(House Bill 118)
62
7-AN ACT concerning
3+EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
4+ [Brackets] indicate matter deleted from existing law.
5+ Underlining indicates amendments to bill.
6+ Strike out indicates matter stricken from the bill by amendment or deleted from the law by
7+amendment.
8+ *hb0118*
89
9-Ground Leases – Notices and Billing – Forms and Requirements
10+HOUSE BILL 118
11+N1 3lr0511
12+ (PRE–FILED) CF SB 194
13+By: Delegate Holmes
14+Requested: October 5, 2022
15+Introduced and read first time: January 11, 2023
16+Assigned to: Environment and Transportation
17+Committee Report: Favorable with amendments
18+House action: Adopted
19+Read second time: February 25, 2023
1020
11-FOR the purpose of prohibiting a leasehold tenant of an unregistered ground lease from
12-being required to hold more than a certain amount of ground rent in escrow;
13-requiring a ground lease holder to mail certain notices and bills to a leasehold tenant
14-in a certain manner under certain circumstances and prohibiting the ground lease
15-holder from requiring the leasehold tenant to reimburse the ground lease holder for
16-the mailing expenses; requiring the State Department of Assessments and Taxation
17-to develop and make available on its website certain form notices and bills; requiring
18-a ground lease transferee to send notice of a ground lease transfer to the State
19-Department of Assessments and Taxation within a certain period of time; and
20-generally relating to ground leases.
21+CHAPTER ______
2122
22-BY renumbering
23- Article – Real Property
24-Section 8–801(b) through (f)
25-to be Section 8–801(c) through (g), respectively
26- Annotated Code of Maryland
27- (2015 Replacement Volume and 2022 Supplement)
23+AN ACT concerning 1
2824
29-BY repealing and reenacting, with amendments,
30- Article – Real Property
31-Section 8–707, 8–805(a) and (d)(1)(iii) and (v) and (3)(ii), 8–807(a), (c), and (d), 8–809,
32-and 8–810
33- Annotated Code of Maryland
34- (2015 Replacement Volume and 2022 Supplement)
25+Ground Leases – Notices and Billing – Forms and Requirements 2
3526
36-BY repealing and reenacting, without amendments,
37- Article – Real Property
38-Section 8–801(a)
39- Annotated Code of Maryland
40- (2015 Replacement Volume and 2022 Supplement)
27+FOR the purpose of prohibiting a leasehold tenant of an unregistered ground lease from 3
28+being required to hold more than a certain amount of ground rent in escrow; 4
29+requiring a ground lease holder to mail certain notices and bills to a leasehold tenant 5
30+in a certain manner under certain circumstances and prohibiting the ground lease 6
31+holder from requiring the leasehold tenant to reimburse the ground lease holder for 7
32+the mailing expenses; requiring the State Department of Assessments and Taxation 8
33+to develop and make available on its website certain form notices and bills; requiring 9
34+a ground lease transferee to send notice of a ground lease transfer to the State 10
35+Department of Assessments and Taxation within a certain period of time; and 11
36+generally relating to ground leases. 12
4137
42-BY adding to
43- Article – Real Property
44-Section 8–801(b) and 8–801.1
45- Annotated Code of Maryland
46- (2015 Replacement Volume and 2022 Supplement)
47- Ch. 184 2023 LAWS OF MARYLAND
38+BY renumbering 13
39+ Article – Real Property 14
40+Section 8–801(b) through (f) 15
41+to be Section 8–801(c) through (g), respectively 16
42+ Annotated Code of Maryland 17
43+ (2015 Replacement Volume and 2022 Supplement) 18
4844
49-– 2 –
50- SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
51-That Section(s) 8–801(b) through (f) of Article – Real Property of the Annotated Code of
52-Maryland be renumbered to be Section(s) 8–801(c) through (g), respectively.
45+BY repealing and reenacting, with amendments, 19
46+ Article – Real Property 20
47+Section 8–707, 8–805(a) and (d)(1)(iii) and (v) and (3)(ii), 8–807(a), (c), and (d), 8–809, 21
48+and 8–810 22 2 HOUSE BILL 118
5349
54- SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland read
55-as follows:
5650
57-Article – Real Property
51+ Annotated Code of Maryland 1
52+ (2015 Replacement Volume and 2022 Supplement) 2
5853
59-8–707.
54+BY repealing and reenacting, without amendments, 3
55+ Article – Real Property 4
56+Section 8–801(a) 5
57+ Annotated Code of Maryland 6
58+ (2015 Replacement Volume and 2022 Supplement) 7
6059
61- If a ground lease is not registered in accordance with this [subtitle, the] SUBTITLE:
60+BY adding to 8
61+ Article – Real Property 9
62+Section 8–801(b) and 8–801.1 10
63+ Annotated Code of Maryland 11
64+ (2015 Replacement Volume and 2022 Supplement) 12
6265
63- (1) THE ground lease holder may not:
66+ SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 13
67+That Section(s) 8–801(b) through (f) of Article – Real Property of the Annotated Code of 14
68+Maryland be renumbered to be Section(s) 8–801(c) through (g), respectively. 15
6469
65- [(1)] (I) Collect any ground rent payments due under the ground lease;
70+ SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 16
71+as follows: 17
6672
67- [(2)] (II) Bring a civil action against the leasehold tenant to enforce any
68-rights the ground lease holder may have under the ground lease; or
73+Article – Real Property 18
6974
70- [(3)] (III) Bring an action against the leasehold tenant under Subtitle 8 of
71-this title; AND
75+8–707. 19
7276
73- (2) THE LEASEHOLD TENANT OF THE UNREGISTERED GROUND LEASE
74-MAY NOT BE REQUIRED TO HOLD MORE THAN 3 YEARS OF GROUND RENT IN ESCROW
75-FOR THE UNREGISTERED GROUND LEASE .
77+ If a ground lease is not registered in accordance with this [subtitle, the] SUBTITLE: 20
7678
77-8–801.
79+ (1) THE ground lease holder may not: 21
7880
79- (a) In this subtitle the following words have the meanings indicated.
81+ [(1)] (I) Collect any ground rent payments due under the ground lease; 22
8082
81- (B) “DEPARTMENT ” MEANS THE STATE DEPARTMENT OF ASSESSMENTS
82-AND TAXATION.
83+ [(2)] (II) Bring a civil action against the leasehold tenant to enforce any 23
84+rights the ground lease holder may have under the ground lease; or 24
8385
84-8–801.1.
86+ [(3)] (III) Bring an action against the leasehold tenant under Subtitle 8 of 25
87+this title; AND 26
8588
86- (A) THE GENERAL ASSEMBLY DECLARES THA T IT IS IN THE PUBLI C
87-INTEREST FOR GROUND RENTS TO BE REDEEMED .
89+ (2) THE LEASEHOLD TENANT OF THE UNREGISTERED GROUND LEASE 27
90+MAY NOT BE REQUIRED TO HOLD MORE THAN 3 YEARS OF GROUND RENT IN ESCROW 28
91+FOR THE UNREGISTERED GROUND LEASE . 29
8892
89- (B) IT IS THE INTENT OF THE GENERAL ASSEMBLY THAT THE DEPARTMENT
90-USE ITS GROUND RENT REDEMPTION PROGRAM T O ASSIST IN THE REDE MPTION OF
91-GROUND RENTS .
93+8–801. 30
9294
93-8–805.
94- WES MOORE, Governor Ch. 184
95+ (a) In this subtitle the following words have the meanings indicated. 31
96+ HOUSE BILL 118 3
9597
96-– 3 –
97- (a) (1) In this section the following words have the meanings indicated.
9898
99- (2) [“Department” means the State Department of Assessments and
100-Taxation.
99+ (B) “DEPARTMENT ” MEANS THE STATE DEPARTMENT OF ASSESSMENTS 1
100+AND TAXATION. 2
101101
102- (3)] “Irredeemable ground rent” means a ground rent created under a
103-ground lease executed before April 9, 1884, that does not contain a provision allowing the
104-leasehold tenant to redeem the ground rent.
102+8–801.1. 3
105103
106- [(4)] (3) “Redeemable ground rent” means a ground rent that may be
107-redeemed in accordance with this section or redeemed or extinguished in accordance with
108-§ 8–804(f) of this subtitle.
104+ (A) THE GENERAL ASSEMBLY DECLARES THA T IT IS IN THE PUBLI C 4
105+INTEREST FOR GROUND RENTS TO BE REDEEMED . 5
109106
110- (d) (1) To be effective and to be entitled to be recorded, the notice shall be
111-executed by the ground lease holder, acknowledged before a notary public, and contain
112-substantially the following information:
107+ (B) IT IS THE INTENT OF THE GENERAL ASSEMBLY THAT THE DEPARTMENT 6
108+USE ITS GROUND RENT REDEMPTION PROGRAM T O ASSIST IN THE REDE MPTION OF 7
109+GROUND RENTS . 8
113110
114- (iii) The name of every leasehold tenant as of the time the notice is
115-filed according to the land records or the records of the [State] Department [of Assessments
116-and Taxation];
111+8–805. 9
117112
118- (v) The recording reference of every leasehold tenant’s leasehold
119-deed, as of the time the notice is filed, according to the land records or the records of the
120-[State] Department [of Assessments and Taxation];
113+ (a) (1) In this section the following words have the meanings indicated. 10
121114
122- (3) The notice shall be indexed as “Notice of Intention to Preserve
123-Irredeemability”:
115+ (2) [“Department” means the State Department of Assessments and 11
116+Taxation. 12
124117
125- (ii) In the grantor indices of deeds under the name of every leasehold
126-tenant as of the time the notice is filed according to the land records or the records of the
127-[State] Department [of Assessments and Taxation]; and
118+ (3)] “Irredeemable ground rent” means a ground rent created under a 13
119+ground lease executed before April 9, 1884, that does not contain a provision allowing the 14
120+leasehold tenant to redeem the ground rent. 15
128121
129-8–807.
122+ [(4)] (3) “Redeemable ground rent” means a ground rent that may be 16
123+redeemed in accordance with this section or redeemed or extinguished in accordance with 17
124+§ 8–804(f) of this subtitle. 18
130125
131- (a) For property subject to a ground lease in effect on or after July 1, 2007, a
132-ground lease holder may bring an action for possession for nonpayment of ground rent only:
126+ (d) (1) To be effective and to be entitled to be recorded, the notice shall be 19
127+executed by the ground lease holder, acknowledged before a notary public, and contain 20
128+substantially the following information: 21
133129
134- (1) If the ground lease holder has the lawful right to claim possession for
135-nonpayment of ground rent;
130+ (iii) The name of every leasehold tenant as of the time the notice is 22
131+filed according to the land records or the records of the [State] Department [of Assessments 23
132+and Taxation]; 24
136133
137- (2) If the ground lease is registered with the [State] Department [of
138-Assessments and Taxation] under Subtitle 7 of this title;
134+ (v) The recording reference of every leasehold tenant’s leasehold 25
135+deed, as of the time the notice is filed, according to the land records or the records of the 26
136+[State] Department [of Assessments and Taxation]; 27
139137
140- (3) If the payment of ground rent is at least 6 months in arrears; and
138+ (3) The notice shall be indexed as “Notice of Intention to Preserve 28
139+Irredeemability”: 29
141140
142- (4) As provided under this section. Ch. 184 2023 LAWS OF MARYLAND
141+ (ii) In the grantor indices of deeds under the name of every leasehold 30
142+tenant as of the time the notice is filed according to the land records or the records of the 31
143+[State] Department [of Assessments and Taxation]; and 32
144+ 4 HOUSE BILL 118
143145
144-– 4 –
145146
146- (c) (1) (I) No less than 60 days before filing an action for possession, the
147-ground lease holder shall send a notice, in the form required under paragraph (2) of this
148-subsection, to the leasehold tenant’s last known address AND TO THE PREMISES ADDRESS
149-as shown in the records of the [State] Department [of Assessments and Taxation, or other
150-place of business or residence if known,] by[:
147+8–807. 1
151148
152- (i) First–class mail;] FIRST–CLASS MAIL and
149+ (a) For property subject to a ground lease in effect on or after July 1, 2007, a 2
150+ground lease holder may bring an action for possession for nonpayment of ground rent only: 3
153151
154- [(ii) Certified] CERTIFIED mail, return receipt requested.
152+ (1) If the ground lease holder has the lawful right to claim possession for 4
153+nonpayment of ground rent; 5
155154
156- (II) IF A LEASEHOLD TENANT ’S LAST KNOWN MAILING ADDRESS
157-AND THE PREMISES ADD RESS LISTED IN THE R ECORDS OF THE DEPARTMENT ARE
158-DIFFERENT, THE GROUND LEASE HOL DER SHALL MAIL ONE C OPY OF THE NOTICE BY
159-FIRST–CLASS MAIL AND ONE C OPY OF THE NOTICE BY CERTIFIED MAIL , RETURN
160-RECEIPT REQUESTED , TO EACH ADDRESS , RESPECTIVELY .
155+ (2) If the ground lease is registered with the [State] Department [of 6
156+Assessments and Taxation] under Subtitle 7 of this title; 7
161157
162- (III) A GROUND LEASE HOLDER MAY NOT REQUIRE A LE ASEHOLD
163-TENANT TO REIMBURSE THE GROUND LEASE HOL DER FOR COSTS INCURR ED IN
164-PROVIDING NOTICE REQUIRED UNDE R THIS SUBSECTION .
158+ (3) If the payment of ground rent is at least 6 months in arrears; and 8
165159
166- (2) The DEPARTMENT SHALL DEVE LOP AND MAKE AVAILAB LE ON ITS
167-WEBSITE A FORM NOTICE FOR US E BY A GROUND LEASE HOLDER THE FORM A
168-GROUND LEASE HOLDER MUST USE TO PROVIDE TO A LEAS EHOLD TENANT THE
169-notice required under paragraph (1) of this subsection [shall be in substantially the same
170-form as the notice contained on the Web site of the State Department of Assessments and
171-Taxation].
160+ (4) As provided under this section. 9
172161
173- (3) If authorized under the ground lease, a ground lease holder may be
174-reimbursed for reasonable late fees, interest, collection costs, and expenses not exceeding
175-$100, provided the outstanding amount due is paid after the notice sent under paragraph
176-(1) of this subsection and before a notice is sent under subsection (d) of this section.
162+ (c) (1) (I) No less than 60 days before filing an action for possession, the 10
163+ground lease holder shall send a notice, in the form required under paragraph (2) of this 11
164+subsection, to the leasehold tenant’s last known address AND TO THE PREMISES ADDRESS 12
165+as shown in the records of the [State] Department [of Assessments and Taxation, or other 13
166+place of business or residence if known,] by[: 14
177167
178- (d) (1) (I) After notice has been sent under subsection (c) of this section and
179-no [less] FEWER than 30 days before filing an action for possession, the ground lease holder
180-shall send a notice, in the form required under paragraph (2) of this subsection, to the
181-leasehold tenant’s last known address AND TO THE PREMISES ADDRESS as shown in the
182-records of the [State] Department [of Assessments and Taxation, or other place of business
183-or residence if known,] by[:
168+ (i) First–class mail;] FIRST–CLASS MAIL and 15
184169
185- (i) First–class mail;] FIRST–CLASS MAIL and
170+ [(ii) Certified] CERTIFIED mail, return receipt requested. 16
186171
187- [(ii) Certified] CERTIFIED mail, return receipt requested.
188- WES MOORE, Governor Ch. 184
172+ (II) IF A LEASEHOLD TENANT ’S LAST KNOWN MAILING ADDRESS 17
173+AND THE PREMISES ADD RESS LISTED IN THE R ECORDS OF THE DEPARTMENT ARE 18
174+DIFFERENT, THE GROUND LEASE HOL DER SHALL MAIL ONE C OPY OF THE NOTICE B Y 19
175+FIRST–CLASS MAIL AND ONE C OPY OF THE NOTICE BY CERTIFIED MAIL , RETURN 20
176+RECEIPT REQUESTED , TO EACH ADDRESS , RESPECTIVELY . 21
189177
190-– 5 –
191- (II) IF A LEASEHOLD TENANT ’S LAST KNOWN MAILING ADDRESS
192-AND THE PREMISES ADD RESS LISTED IN THE R ECORDS OF THE DEPARTMENT ARE
193-DIFFERENT, THE GROUND LEASE HOL DER SHALL MAIL ONE C OPY OF THE NOTICE BY
194-FIRST–CLASS MAIL AND ONE C OPY OF THE NOTICE BY CERTIFIED MAIL , RETURN
195-RECEIPT REQUESTED , TO EACH ADDRESS , RESPECTIVELY .
178+ (III) A GROUND LEASE HOLDER MAY NOT REQUIRE A LE ASEHOLD 22
179+TENANT TO REIMBURSE THE GROUND LEASE HOL DER FOR COSTS INCURR ED IN 23
180+PROVIDING NOTICE REQUIRED UN DER THIS SUBSECTION . 24
196181
197- (III) A GROUND LEASE HOLDER MAY NOT REQUIRE A LE ASEHOLD
198-TENANT TO REIMBURSE THE GROUND LEASE HOL DER FOR COSTS INCURR ED IN
199-PROVIDING NOTICE REQ UIRED UNDER THIS SUB SECTION.
182+ (2) The DEPARTMENT SHALL DEVE LOP AND MAKE AVAILAB LE ON ITS 25
183+WEBSITE A FORM NOTICE FOR US E BY A GROUND LEASE HOLDER THE FORM A 26
184+GROUND LEASE HOLDER MUST USE TO PROVIDE TO A LEAS EHOLD TENANT THE 27
185+notice required under paragraph (1) of this subsection [shall be in substantially the same 28
186+form as the notice contained on the Web site of the State Department of Assessments and 29
187+Taxation]. 30
200188
201- (2) (I) The DEPARTMEN T SHALL DEVELOP AND MAKE AVAILABLE
202-ON ITS WEBSITE A FORM NOTICE FOR US E BY A GROUND LEASE HOLDER THE FORM
203-A GROUND LEASE HOLDE R MUST USE TO PROVIDE TO A LEAS EHOLD TENANT THE
204-notice required under paragraph (1) of this subsection.
189+ (3) If authorized under the ground lease, a ground lease holder may be 31
190+reimbursed for reasonable late fees, interest, collection costs, and expenses not exceeding 32 HOUSE BILL 118 5
205191
206- (II) THE FORM shall be in 14 point bold font and [include] REQUIRE
207-THE FOLLOWING :
208192
209- [(i)] 1. An itemized bill for the payment due;
193+$100, provided the outstanding amount due is paid after the notice sent under paragraph 1
194+(1) of this subsection and before a notice is sent under subsection (d) of this section. 2
210195
211- [(ii)] 2. The amount necessary to cure the default, including late
212-fees, interest, collection costs, and expenses authorized under paragraph (3) of this
213-subsection;
196+ (d) (1) (I) After notice has been sent under subsection (c) of this section and 3
197+no [less] FEWER than 30 days before filing an action for possession, the ground lease holder 4
198+shall send a notice, in the form required under paragraph (2) of this subsection, to the 5
199+leasehold tenant’s last known address AND TO THE PREMISES ADDRESS as shown in the 6
200+records of the [State] Department [of Assessments and Taxation, or other place of business 7
201+or residence if known,] by[: 8
214202
215- [(iii)] 3. The name and address of the person to whom to send the
216-payment due;
203+ (i) First–class mail;] FIRST–CLASS MAIL and 9
217204
218- [(iv)] 4. The name and contact information of the person to contact
219-for questions about the notice; and
205+ [(ii) Certified] CERTIFIED mail, return receipt requested. 10
220206
221- [(v)] 5. A statement that unless the default is cured in 30 days:
207+ (II) IF A LEASEHOLD TENANT ’S LAST KNOWN MAILING ADDRESS 11
208+AND THE PREMISES ADD RESS LISTED IN THE R ECORDS OF THE DEPARTMENT ARE 12
209+DIFFERENT, THE GROUND LEASE HOL DER SHALL MAIL ONE C OPY OF THE NOTICE BY 13
210+FIRST–CLASS MAIL AND ONE C OPY OF THE NOTICE BY CERTIFIED MAIL , RETURN 14
211+RECEIPT REQUESTED , TO EACH ADDRESS , RESPECTIVELY . 15
222212
223- [1.] A. The ground lease holder intends to file an action for
224-possession; and
213+ (III) A GROUND LEASE HOLDER MAY NOT REQUIRE A LE ASEHOLD 16
214+TENANT TO REIMBURSE THE GROUND LEASE HOL DER FOR COSTS INCURR ED IN 17
215+PROVIDING NOTICE REQ UIRED UNDER THIS SUB SECTION. 18
225216
226- [2.] B. The leasehold tenant may be liable for reimbursing
227-the ground lease holder for expenses and costs incurred in connection with the collection of
228-past due ground rent and the filing of the action for possession.
217+ (2) (I) The DEPARTMEN T SHALL DEVELOP AND MAKE AVAILABLE 19
218+ON ITS WEBSITE A FORM NOTICE FOR US E BY A GROUND LEASE HOLDER THE FORM 20
219+A GROUND LEASE HOLDE R MUST USE TO PROVIDE TO A LEAS EHOLD TENANT THE 21
220+notice required under paragraph (1) of this subsection. 22
229221
230- (3) If authorized under the ground lease, a ground lease holder may be
231-reimbursed for reasonable late fees, interest, collection costs, and expenses not exceeding
232-$650, including:
222+ (II) THE FORM shall be in 14 point bold font and [include] REQUIRE 23
223+THE FOLLOWING : 24
233224
234- (i) Title abstract and examination fees;
235- Ch. 184 2023 LAWS OF MARYLAND
225+ [(i)] 1. An itemized bill for the payment due; 25
236226
237-– 6 –
238- (ii) Judgment report costs;
227+ [(ii)] 2. The amount necessary to cure the default, including late 26
228+fees, interest, collection costs, and expenses authorized under paragraph (3) of this 27
229+subsection; 28
239230
240- (iii) Photocopying and postage fees; and
231+ [(iii)] 3. The name and address of the person to whom to send the 29
232+payment due; 30
241233
242- (iv) Attorney’s fees.
234+ [(iv)] 4. The name and contact information of the person to contact 31
235+for questions about the notice; and 32
243236
244-8–809.
237+ [(v)] 5. A statement that unless the default is cured in 30 days: 33 6 HOUSE BILL 118
245238
246- (a) (1) A ground lease holder may not collect a yearly or half –yearly
247-installment payment of a ground rent due under the ground lease unless:
248239
249- [(1)] (I) The ground lease is registered with the [State] Department [of
250-Assessments and Taxation] under Subtitle 7 of this title; and
251240
252- [(2)] (II) At least 60 days before the payment is due, the ground lease
253-holder mails a bill, IN THE FORM REQUIRED UNDER SUBSECTION (B) OF THIS
254-SECTION, to the last known address of the leasehold tenant and to the PREMISES address
255-of the property subject to the ground lease LISTED IN THE RECORD S OF THE
256-DEPARTMENT .
241+ [1.] A. The ground lease holder intends to file an action for 1
242+possession; and 2
257243
258- (2) IF A LEASEHOLD TENANT ’S LAST KNOWN MAILING ADDRESS AND
259-THE PREMISES ADDRESS LISTED IN THE RECORD S OF THE DEPARTMENT ARE
260-IDENTICAL, THE GROUND LEASE HOL DER SHALL MAIL ONE C OPY OF THE BILL TO
261-THE ADDRESS BY FIRST –CLASS MAIL AND ONE C OPY OF THE BILL TO T HE ADDRESS
262-BY CERTIFIED MAIL , RETURN RECEIPT REQUE STED.
244+ [2.] B. The leasehold tenant may be liable for reimbursing 3
245+the ground lease holder for expenses and costs incurred in connection with the collection of 4
246+past due ground rent and the filing of the action for possession. 5
263247
264- (3) IF A LEASEHOLD TENANT ’S LAST KNOWN MAILING ADDRESS AND
265-PREMISES ADDRESS LIS TED IN THE RECORDS O F THE DEPARTMENT ARE
266-DIFFERENT, THE GROUND LEASE HOL DER SHALL MAIL ONE C OPY OF THE BILL BY
267-FIRST–CLASS MAIL AND ONE COPY OF THE BILL BY CERTIFIE D MAIL, RETURN
268-RECEIPT REQUESTED , TO EACH ADDRESS , RESPECTIVELY .
248+ (3) If authorized under the ground lease, a ground lease holder may be 6
249+reimbursed for reasonable late fees, interest, collection costs, and expenses not exceeding 7
250+$650, including: 8
269251
270- (4) A GROUND LEASE HOLDER MAY NOT REQUIRE THE LEASEHOLD
271-TENANT TO REIMBURSE THE GROUND LEASE HOL DER FOR COSTS INCURR ED TO
272-PROVIDE A BILL UNDER THIS SUBSECTION.
252+ (i) Title abstract and examination fees; 9
273253
274- (b) (1) THE DEPARTMENT SHALL DEVE LOP AND MAKE AVAILAB LE ON ITS
275-WEBSITE A FORM BILL FOR USE BY A GROUND LEASE HO LDER THE FORM A GROUND
276-LEASE HOLDER MUST US E TO PROVIDE TO A LE ASEHOLD TENANT THE B ILL
277-REQUIRED UNDER SUBSE CTION (A)(1)(II) OF THIS SECTION.
254+ (ii) Judgment report costs; 10
278255
279- (2) The FORM bill MADE AVAILABLE ON TH E DEPARTMENT ’S WEBSITE
280-shall include a notice in boldface type, at least as large as 14 point, in substantially the
281-following form: WES MOORE, Governor Ch. 184
256+ (iii) Photocopying and postage fees; and 11
282257
283-– 7 –
258+ (iv) Attorney’s fees. 12
284259
285-“NOTICE REQUIRED BY MARYLAND LAW
286-REGARDING YOUR GROUND RENT
260+8–809. 13
287261
288-This property (address) is subject to a ground lease. The annual payment on the ground
289-lease (“ground rent”) is $(dollar amount), payable in yearly or half–yearly installments on
290-(date or dates).
262+ (a) (1) A ground lease holder may not collect a yearly or half –yearly 14
263+installment payment of a ground rent due under the ground lease unless: 15
291264
292-The next ground rent payment is due (day, month, year) in the amount of $(dollar amount).
265+ [(1)] (I) The ground lease is registered with the [State] Department [of 16
266+Assessments and Taxation] under Subtitle 7 of this title; and 17
293267
294-The payment of the ground rent should be sent to:
295-(name of ground lease holder)
296-(address)
297-(phone number)
268+ [(2)] (II) At least 60 days before the payment is due, the ground lease 18
269+holder mails a bill, IN THE FORM REQUIRED UNDER SUBSECTION (B) OF THIS 19
270+SECTION, to the last known address of the leasehold tenant and to the PREMISES address 20
271+of the property subject to the ground lease LISTED IN THE RECORD S OF THE 21
272+DEPARTMENT . 22
298273
299-NOTE REGARDING YOUR RIGHTS AND RESPONSIBILITIES UNDER MARYLAND
300-LAW:
274+ (2) IF A LEASEHOLD TENANT ’S LAST KNOWN MAILING ADDRESS AND 23
275+THE PREMISES ADDRESS LISTED IN THE RECORD S OF THE DEPARTMENT ARE 24
276+IDENTICAL, THE GROUND LEASE HOL DER SHALL MAIL ONE C OPY OF THE BILL TO 25
277+THE ADDRESS BY FI RST–CLASS MAIL AND ONE C OPY OF THE BILL TO T HE ADDRESS 26
278+BY CERTIFIED MAIL , RETURN RECEIPT REQUE STED. 27
301279
302-The ground lease holder is required to register the ground lease with the State Department
303-of Assessments and Taxation and is prohibited from collecting ground rent payments unless
304-the ground lease is registered. If the ground lease is registered, as the owner of this
305-property, you are obligated to pay the ground rent to the ground lease holder. To determine
306-whether the ground lease is registered, you may check the [Web site] WEBSITE of the State
307-Department of Assessments and Taxation. It is also your responsibility to notify the ground
308-lease holder if you change your address or transfer ownership of the property.
280+ (3) IF A LEASEHOLD TENANT ’S LAST KNOWN MAILING ADDRESS AND 28
281+PREMISES ADDRESS LIS TED IN THE RECORDS O F THE DEPARTMENT ARE 29
282+DIFFERENT, THE GROUND LEASE HOL DER SHALL MAIL ONE COP Y OF THE BILL BY 30
283+FIRST–CLASS MAIL AND ONE C OPY OF THE BILL BY C ERTIFIED MAIL , RETURN 31
284+RECEIPT REQUESTED , TO EACH ADDRESS , RESPECTIVELY . 32 HOUSE BILL 118 7
309285
310-If you fail to pay the ground rent on time, you are still responsible for paying the ground
311-rent. In addition, if the ground lease holder files an action in court to collect the past due
312-ground rent, you may be required to pay the ground lease holder for fees and costs
313-associated with the collection of the past due ground rent. In addition, the ground lease
314-holder may also file an action in court to take possession of the property, which may result
315-in your being responsible for additional fees and costs and ultimately in your loss of the
316-property. Please note that under Maryland law, a ground lease holder may demand not
317-more than 3 years of past due ground rent, and there are limits on how much a ground
318-lease holder may be reimbursed for fees and costs. If you fail to pay the ground rent on
319-time, you should contact a lawyer for advice.
320286
321-As the owner of this property, you are entitled to redeem, or purchase, the ground lease
322-from the ground lease holder and obtain absolute ownership of the property. Unless you
323-and the ground lease holder agree to a lesser amount, the amount to redeem your ground
324-lease is _______. If you wish to redeem the ground lease, contact the ground lease holder. If
325-the identity of the ground lease holder is unknown, the State Department of Assessments
326-and Taxation provides a process to redeem the ground lease that may result in your
327-obtaining absolute ownership of the property. If you would like to obtain absolute
328-ownership of this property, you should contact a lawyer for advice.”.
329- Ch. 184 2023 LAWS OF MARYLAND
330287
331-– 8 –
332-8–810.
288+ (4) A GROUND LEASE HOLDER MAY NOT REQUIRE THE LEASEHOLD 1
289+TENANT TO REIMBURSE THE GROUND LEASE HOL DER FOR COSTS INCURRED TO 2
290+PROVIDE A BILL UNDER THIS SUBSECTION . 3
333291
334- (a) Within 30 days after any transfer of a ground lease, the transferee shall notify
335-the leasehold tenant AND THE DEPARTMENT of the transfer.
292+ (b) (1) THE DEPARTMENT SHALL DEVE LOP AND MAKE AVAILAB LE ON ITS 4
293+WEBSITE A FORM BILL FOR USE BY A GROUND LEASE HO LDER THE FORM A GROUND 5
294+LEASE HOLDER MUST US E TO PROVIDE TO A LE ASEHOLD TENANT THE BILL 6
295+REQUIRED UNDER SUBSE CTION (A)(1)(II) OF THIS SECTION. 7
336296
337- (b) (1) The notification shall include the name and address of the new ground
338-lease holder and the date of the transfer.
297+ (2) The FORM bill MADE AVAILABLE ON TH E DEPARTMENT ’S WEBSITE 8
298+shall include a notice in boldface type, at least as large as 14 point, in substantially the 9
299+following form: 10
339300
340- (2) If the property is subject to a redeemable ground rent, the notification
341-shall also include the following notice:
301+“NOTICE REQUIRED BY MA RYLAND LAW 11
302+REGARDING YOUR GROUND RENT 12
342303
343- “As the owner of the property subject to this ground lease, you are entitled to redeem,
344-or purchase, the ground lease from the ground lease holder and obtain absolute ownership
345-of the property. The redemption amount is fixed by law but may also be negotiated with
346-the ground lease holder for a different amount. For information on redeeming the ground
347-lease, contact the ground lease holder.”
304+This property (address) is subject to a ground lease. The annual payment on the ground 13
305+lease (“ground rent”) is $(dollar amount), payable in yearly or half–yearly installments on 14
306+(date or dates). 15
348307
349- (c) (1) A ground lease holder shall send notice under this section to the last
350-known address of the leasehold tenant AND THE PREMISES ADDRESS LIS TED IN THE
351-RECORDS OF THE DEPARTMENT BY FIRST –CLASS MAIL AND CERTI FIED MAIL,
352-RETURN RECEIPT REQUE STED.
308+The next ground rent payment is due (day, month, year) in the amount of $(dollar amount). 16
353309
354- (2) IF A LEASEHOLD TENANT ’S LAST KNOWN MAILING ADDRESS AND
355-PREMISES ADDRESS LIS TED IN THE RECORDS O F THE DEPARTMENT ARE
356-DIFFERENT, THE GROUND LEASE HOL DER SHALL MAIL ONE C OPY OF THE NOTICE BY
357-FIRST–CLASS MAIL AND ONE C OPY OF THE NOTICE BY CERTIFIED MAIL , RETURN
358-RECEIPT REQUESTED , TO EACH ADDRESS , RESPECTIVELY .
310+The payment of the ground rent should be sent to: 17
311+(name of ground lease holder) 18
312+(address) 19
313+(phone number) 20
359314
360- (3) A GROUND LEASE HOLDER MAY NOT REQUIRE A LE ASEHOLD
361-TENANT TO REIMBU RSE THE GROUND LEASE HOLDER FOR COSTS INC URRED IN
362-PROVIDING NOTICE REQ UIRED UNDER THIS SEC TION.
315+NOTE REGARDING YOUR RIGHTS AND RESPONSIBILITIES UNDER MARYLAND 21
316+LAW: 22
363317
364- SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect
365-October 1, 2023.
318+The ground lease holder is required to register the ground lease with the State Department 23
319+of Assessments and Taxation and is prohibited from collecting ground rent payments unless 24
320+the ground lease is registered. If the ground lease is registered, as the owner of this 25
321+property, you are obligated to pay the ground rent to the ground lease holder. To determine 26
322+whether the ground lease is registered, you may check the [Web site] WEBSITE of the State 27
323+Department of Assessments and Taxation. It is also your responsibility to notify the ground 28
324+lease holder if you change your address or transfer ownership of the property. 29
366325
367-Approved by the Governor, April 24, 2023.
326+If you fail to pay the ground rent on time, you are still responsible for paying the ground 30
327+rent. In addition, if the ground lease holder files an action in court to collect the past due 31
328+ground rent, you may be required to pay the ground lease holder for fees and costs 32
329+associated with the collection of the past due ground rent. In addition, the ground lease 33
330+holder may also file an action in court to take possession of the property, which may result 34
331+in your being responsible for additional fees and costs and ultimately in your loss of the 35
332+property. Please note that under Maryland law, a ground lease holder may demand not 36 8 HOUSE BILL 118
333+
334+
335+more than 3 years of past due ground rent, and there are limits on how much a ground 1
336+lease holder may be reimbursed for fees and costs. If you fail to pay the ground rent on 2
337+time, you should contact a lawyer for advice. 3
338+
339+As the owner of this property, you are entitled to redeem, or purchase, the ground lease 4
340+from the ground lease holder and obtain absolute ownership of the property. Unless you 5
341+and the ground lease holder agree to a lesser amount, the amount to redeem your ground 6
342+lease is _______. If you wish to redeem the ground lease, contact the ground lease holder. If 7
343+the identity of the ground lease holder is unknown, the State Department of Assessments 8
344+and Taxation provides a process to redeem the ground lease that may result in your 9
345+obtaining absolute ownership of the property. If you would like to obtain absolute 10
346+ownership of this property, you should contact a lawyer for advice.”. 11
347+
348+8–810. 12
349+
350+ (a) Within 30 days after any transfer of a ground lease, the transferee shall notify 13
351+the leasehold tenant AND THE DEPARTMENT of the transfer. 14
352+
353+ (b) (1) The notification shall include the name and address of the new ground 15
354+lease holder and the date of the transfer. 16
355+
356+ (2) If the property is subject to a redeemable ground rent, the notification 17
357+shall also include the following notice: 18
358+
359+ “As the owner of the property subject to this ground lease, you are entitled to redeem, 19
360+or purchase, the ground lease from the ground lease holder and obtain absolute ownership 20
361+of the property. The redemption amount is fixed by law but may also be negotiated with 21
362+the ground lease holder for a different amount. For information on redeeming the ground 22
363+lease, contact the ground lease holder.” 23
364+
365+ (c) (1) A ground lease holder shall send notice under this section to the last 24
366+known address of the leasehold tenant AND THE PREMISES ADDRESS LIS TED IN THE 25
367+RECORDS OF THE DEPARTMENT BY FIRST –CLASS MAIL AND CERTI FIED MAIL, 26
368+RETURN RECEIPT REQUE STED. 27
369+
370+ (2) IF A LEASEHOLD TENANT ’S LAST KNOWN MAILING ADDRESS AND 28
371+PREMISES ADDRESS LIS TED IN THE RECORDS O F THE DEPARTMENT ARE 29
372+DIFFERENT, THE GROUND LEASE HOL DER SHALL MAIL ONE C OPY OF THE NOTICE BY 30
373+FIRST–CLASS MAIL AND ONE C OPY OF THE NOTICE BY CERTIFIED MAIL , RETURN 31
374+RECEIPT REQUESTED , TO EACH ADDRESS , RESPECTIVELY . 32
375+
376+ (3) A GROUND LEASE HOLDER MAY NOT REQUIRE A LE ASEHOLD 33
377+TENANT TO REIMBU RSE THE GROUND LEASE HOLDER FOR COSTS INC URRED IN 34
378+PROVIDING NOTICE REQ UIRED UNDER THIS SEC TION. 35
379+ HOUSE BILL 118 9
380+
381+
382+ SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect 1
383+October 1, 2023. 2
384+
385+
386+
387+
388+Approved:
389+________________________________________________________________________________
390+ Governor.
391+________________________________________________________________________________
392+ Speaker of the House of Delegates.
393+________________________________________________________________________________
394+ President of the Senate.