EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
Underlining indicates amendments to bill.
Strike out indicates matter stricken from the bill by amendment or deleted from the law by
amendment.
*hb0182*
HOUSE BILL 182
N1, L3 3lr1166
CF SB 335
By: Delegates Reznik and Lopez, Addison, Allen, Boyce, Foley, Healey, Holmes,
Lehman, Lopez, Love, T. Morgan, Nawrocki, Ruth, Stein, Stewart, Terrasa,
and Ziegler
Introduced and read first time: January 18, 2023
Assigned to: Environment and Transportation
Committee Report: Favorable with amendments
House action: Adopted
Read second time: February 25, 2023
CHAPTER ______
AN ACT concerning 1
Real Property – Unlawfully Restrictive Covenants – Modification by Counties or 2
Municipalities 3
FOR the purpose of authorizing a county or municipality to execute and record a restrictive 4
covenant modification to an unlawfully restrictive covenant for a property within the 5
boundaries of the county or municipality subject to a certain notice requirement; 6
providing that persons with an ownership interest in property that is subject to an 7
unlawfully restrictive covenant may decline action by a county or municipality to 8
execute and record a restrictive covenant modification; and generally relating to 9
unlawfully restrictive covenants. 10
BY repealing and reenacting, with amendments, 11
Article – Real Property 12
Section 3–112 13
Annotated Code of Maryland 14
(2015 Replacement Volume and 2022 Supplement) 15
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 16
That the Laws of Maryland read as follows: 17
Article – Real Property 18
3–112. 19 2 HOUSE BILL 182
(a) In this section, “unlawfully restrictive covenant” means any recorded covenant 1
or restriction that restricts ownership based on race, religious belief, or national origin. 2
(b) This section does not apply to an unlawfully restrictive covenant that is part 3
of a declaration, uniform general scheme, or plan of development of a homeowners 4
association, as defined in § 11B–101 of this article. 5
(c) (1) A person may execute and record a restrictive covenant modification to 6
an unlawfully restrictive covenant in accordance with this section if the person: 7
[(1)] (I) Holds an ownership interest in property that the person believes 8
is subject to the unlawfully restrictive covenant; or 9
[(2)] (II) Is a nonprofit entity that is required to enforce within a defined 10
residential neighborhood: 11
[(i)] 1. Covenants that limit architectural alterations, 12
renovations, landscaping elements, or other modifications to residential lots in the 13
neighborhood; and 14
[(ii)] 2. The unlawfully restrictive covenant. 15
(2) (I) SUBJECT TO SUBPARAGRA PH (II) OF THIS PARAGRAPH , A 16
COUNTY OR MUNICIPALITY MAY EXE CUTE AND RECORD A RE STRICTIVE COVENANT 17
MODIFICATION TO AN U NLAWFULLY RESTRICTIV E COVENANT IN ACCORD ANCE WITH 18
THIS SECTION IF: 19
1. THE PROPERTY THAT THE COUNTY OR MUNICIPALITY 20
BELIEVES IS SUBJECT TO AN UNLAWFULLY RES TRICTIVE COVENANT IS WITHIN THE 21
BOUNDARIES OF THE COUNTY OR MUNICIPALITY; AND 22
2. AT LEAST 30 DAYS BEFORE EXECUTIN G AND 23
RECORDING THE RESTRI CTIVE COVENANT MODIF ICATION, THE COUNTY OR 24
MUNICIPALITY PROVIDE S WRITTEN NOTICE IN ACCORDANCE WITH SUBP ARAGRAPH 25
(III) OF THIS PARAGRAPH OF THE COUNTY’S OR MUNICIPALITY’S INTENT TO 26
EXECUTE AND RECORD T HE RESTRICTIVE COVEN ANT MODIFICATION TO ALL 27
PERSONS WITH AN OWNE RSHIP INTEREST IN T HE PROPERTY . 28
(II) A PERSON WITH AN OWNER SHIP INTEREST IN THE 29
PROPERTY MAY DECLINE TO HAVE THE RESTRICT IVE COVENANT MODIFIC ATION 30
EXECUTED AND RECORDE D BY THE COUNTY OR MUNICIPALITY BY NOTI FYING THE 31
COUNTY OR MUNICIPALITY WITHIN 30 DAYS AFTER THE DATE OF NOTICE. 32
HOUSE BILL 182 3
(III) NOTICE UNDER SUBPARAG RAPH (I)2 OF THIS PARAGRAPH 1
SHALL: 2
1. BE SENT BY FIRST–CLASS MAIL; AND 3
2. PROVIDE INFORMATION O N HOW A PERSON WITH AN 4
OWNERSHIP INTEREST I N THE PROPERTY MAY D ECLINE TO HAVE THE R ESTRICTIVE 5
COVENANT MODIFICATIO N EXECUTED AND RECOR DED BY THE COUNTY OR 6
MUNICIPALITY. 7
(d) (1) A restrictive covenant modification shall: 8
(i) Consist of a complete copy of the original instrument containing 9
the unlawfully restrictive covenant with the language of the unlawfully restrictive covenant 10
stricken; and 11
(ii) Be accompanied by a complete restrictive covenant modification 12
intake sheet, on the form that the Administrative Office of the Courts provides. 13
(2) The restrictive covenant modification intake sheet described in 14
paragraph (1)(ii) of this subsection shall: 15
(i) 1. Be signed by the record owner of the property; or 16
2. In the case of a nonprofit entity, be accompanied by a 17
statement that a majority of the governing body of the nonprofit entity has agreed to the 18
restrictive covenant modification; 19
(ii) Reference the book and page number or other place where the 20
original instrument containing the unlawfully restrictive covenant is recorded; and 21
(iii) Include any other information that the Administrative Office of 22
the Courts considers necessary in carrying out the requirements of this section. 23
(e) (1) On receipt of a restrictive covenant modification, the clerk of the circuit 24
court shall submit the restrictive covenant modification together with a copy of the original 25
instrument referenced in the restrictive covenant modification to the county attorney. 26
(2) The county attorney shall: 27
(i) Review the restrictive covenant modification and the copy of the 28
original instrument to determine: 29
1. Whether the original instrument contains an unlawfully 30
restrictive covenant; and 31
4 HOUSE BILL 182
2. Whether the restrictive covenant modification correctly 1
strikes through only the language of the unlawfully restrictive covenant; and 2
(ii) On completion of the review, return the restrictive covenant 3
modification and copy of the original to the clerk of the circuit court together with the 4
county attorney’s determination. 5
(3) The clerk of the circuit court may not record a restrictive covenant 6
modification unless the county attorney determines that the modification is appropriate in 7
accordance with paragraph (2) of this subsection. 8
(f) A restrictive covenant modification shall be indexed in the same manner as 9
the original instrument. 10
(g) (1) Subject to all covenants, conditions, and restrictions that were recorded 11
after the recording of the original instrument, the restrictions contained in the restrictive 12
covenant modification, once recorded, are the only restrictions based on the original 13
instrument that apply to the property. 14
(2) The effective date of the terms and conditions contained in the 15
restrictive covenant modification shall be the same as the effective date of the original 16
instrument. 17
(h) If a person causes to be recorded a restrictive covenant modification that 18
contains modifications not authorized under this section: 19
(1) The clerk of the circuit court may not incur any liability for recording 20
the restrictive covenant modification; 21
(2) The county may not incur any liability as a result of a determination 22
rendered by the county attorney under subsection (e) of this section; and 23
(3) Any liability that results from the unauthorized recordation shall be 24
the sole responsibility of the person that executed the restrictive covenant modification. 25
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 26
October 1, 2023. 27