WES MOORE, Governor Ch. 476
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Chapter 476
(House Bill 182)
AN ACT concerning
Real Property – Unlawfully Restrictive Covenants – Modification by Counties or
Municipalities
FOR the purpose of authorizing a county or municipality to execute and record a restrictive
covenant modification to an unlawfully restrictive covenant for a property within the
boundaries of the county or municipality subject to a certain notice requirement;
providing that persons with an ownership interest in property that is subject to an
unlawfully restrictive covenant may decline action by a county or municipality to
execute and record a restrictive covenant modification; and generally relating to
unlawfully restrictive covenants.
BY repealing and reenacting, with amendments,
Article – Real Property
Section 3–112
Annotated Code of Maryland
(2015 Replacement Volume and 2022 Supplement)
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
That the Laws of Maryland read as follows:
Article – Real Property
3–112.
(a) In this section, “unlawfully restrictive covenant” means any recorded covenant
or restriction that restricts ownership based on race, religious belief, or national origin.
(b) This section does not apply to an unlawfully restrictive covenant that is part
of a declaration, uniform general scheme, or plan of development of a homeowners
association, as defined in § 11B–101 of this article.
(c) (1) A person may execute and record a restrictive covenant modification to
an unlawfully restrictive covenant in accordance with this section if the person:
[(1)] (I) Holds an ownership interest in property that the person believes
is subject to the unlawfully restrictive covenant; or
[(2)] (II) Is a nonprofit entity that is required to enforce within a defined
residential neighborhood:
Ch. 476 2023 LAWS OF MARYLAND
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[(i)] 1. Covenants that limit architectural alterations,
renovations, landscaping elements, or other modifications to residential lots in the
neighborhood; and
[(ii)] 2. The unlawfully restrictive covenant.
(2) (I) SUBJECT TO SUBPARAGRA PH (II) OF THIS PARAGRAPH , A
COUNTY OR MUNICIPALITY MAY EXE CUTE AND RECORD A RE STRICTIVE COVENANT
MODIFICATION TO AN U NLAWFULLY RESTRICTIV E COVENANT IN ACCORD ANCE WITH
THIS SECTION IF:
1. THE PROPERTY THAT THE COUNTY OR MUNICIPALITY
BELIEVES IS SUBJECT TO AN UNLAWFULLY RES TRICTIVE COVENANT IS WITHIN THE
BOUNDARIES OF THE COUNTY OR MUNICIPALITY; AND
2. AT LEAST 30 DAYS BEFORE EXECUTIN G AND
RECORDING THE RESTRI CTIVE COVENANT MODIF ICATION, THE COUNTY OR
MUNICIPALITY PROVIDE S WRITTEN NOTICE IN ACCORDANCE WITH SUBP ARAGRAPH
(III) OF THIS PARAGRAPH OF THE COUNTY’S OR MUNICIPALITY’S INTENT TO
EXECUTE AND RECORD T HE RESTRICTIVE COVEN ANT MODIFICATION TO ALL
PERSONS WITH AN OWNE RSHIP INTEREST IN THE PROPERTY .
(II) A PERSON WITH AN OWNER SHIP INTEREST IN THE
PROPERTY MAY DECLINE TO HAVE THE RESTRICT IVE COVENANT MODIFIC ATION
EXECUTED AND RECORDE D BY THE COUNTY OR MUNICIPALITY BY NOTI FYING THE
COUNTY OR MUNICIPALITY WITHIN 30 DAYS AFTER THE DA TE OF NOTICE.
(III) NOTICE UNDER SUBPARAG RAPH (I)2 OF THIS PARAGRAPH
SHALL:
1. BE SENT BY FIRST–CLASS MAIL; AND
2. PROVIDE INFORMATION O N HOW A PERSON WITH AN
OWNERSHIP INTEREST I N THE PROPERTY MAY D ECLINE TO HAVE THE R ESTRICTIVE
COVENANT MOD IFICATION EXECUTED A ND RECORDED BY THE COUNTY OR
MUNICIPALITY.
(d) (1) A restrictive covenant modification shall:
(i) Consist of a complete copy of the original instrument containing
the unlawfully restrictive covenant with the language of the unlawfully restrictive covenant
stricken; and
WES MOORE, Governor Ch. 476
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(ii) Be accompanied by a complete restrictive covenant modification
intake sheet, on the form that the Administrative Office of the Courts provides.
(2) The restrictive covenant modification intake sheet described in
paragraph (1)(ii) of this subsection shall:
(i) 1. Be signed by the record owner of the property; or
2. In the case of a nonprofit entity, be accompanied by a
statement that a majority of the governing body of the nonprofit entity has agreed to the
restrictive covenant modification;
(ii) Reference the book and page number or other place where the
original instrument containing the unlawfully restrictive covenant is recorded; and
(iii) Include any other information that the Administrative Office of
the Courts considers necessary in carrying out the requirements of this section.
(e) (1) On receipt of a restrictive covenant modification, the clerk of the circuit
court shall submit the restrictive covenant modification together with a copy of the original
instrument referenced in the restrictive covenant modification to the county attorney.
(2) The county attorney shall:
(i) Review the restrictive covenant modification and the copy of the
original instrument to determine:
1. Whether the original instrument contains an unlawfully
restrictive covenant; and
2. Whether the restrictive covenant modification correctly
strikes through only the language of the unlawfully restrictive covenant; and
(ii) On completion of the review, return the restrictive covenant
modification and copy of the original to the clerk of the circuit court together with the
county attorney’s determination.
(3) The clerk of the circuit court may not record a restrictive covenant
modification unless the county attorney determines that the modification is appropriate in
accordance with paragraph (2) of this subsection.
(f) A restrictive covenant modification shall be indexed in the same manner as
the original instrument.
(g) (1) Subject to all covenants, conditions, and restrictions that were recorded
after the recording of the original instrument, the restrictions contained in the restrictive Ch. 476 2023 LAWS OF MARYLAND
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covenant modification, once recorded, are the only restrictions based on the original
instrument that apply to the property.
(2) The effective date of the terms and conditions contained in the
restrictive covenant modification shall be the same as the effective date of the original
instrument.
(h) If a person causes to be recorded a restrictive covenant modification that
contains modifications not authorized under this section:
(1) The clerk of the circuit court may not incur any liability for recording
the restrictive covenant modification;
(2) The county may not incur any liability as a result of a determination
rendered by the county attorney under subsection (e) of this section; and
(3) Any liability that results from the unauthorized recordation shall be
the sole responsibility of the person that executed the restrictive covenant modification.
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect
October 1, 2023.
Approved by the Governor, May 8, 2023.