WES MOORE, Governor Ch. 274
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Chapter 274
(House Bill 21)
AN ACT concerning
Property Tax – Tax Sales – Notices and Payoff Amount for Redemption
FOR the purpose of requiring that the holder of a certificate of sale include the e–mail
address of certain persons in certain notices required to be sent to certain persons
with an interest in a property that is sold at a tax sale; authorizing the owner of
certain persons with an interest in owner–occupied property sold at a tax sale to
request the current payoff amount to redeem the property; and generally relating to
tax sales.
BY repealing and reenacting, without amendments,
Article – Tax – Property
Section 14–833(a–1)(1)
Annotated Code of Maryland
(2019 Replacement Volume and 2022 Supplement)
BY repealing and reenacting, with amendments,
Article – Tax – Property
Section 14–833(a–1)(3) and (5)(ii)
Annotated Code of Maryland
(2019 Replacement Volume and 2022 Supplement)
BY adding to
Article – Tax – Property
Section 14–833(a–1)(5)(ii)
Annotated Code of Maryland
(2019 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 – Tax – Property
14–833.
(a–1) (1) The holder of a certificate of sale may not file a complaint to foreclose
the right of redemption until at least 2 months after sending the first notice and at least 30
days after sending the second notice required under this subsection to:
(i) the person who last appears as owner of the property on the
collector’s tax roll; and
Ch. 274 2023 LAWS OF MARYLAND
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(ii) 1. the current mortgagee of the property, assignee of a
mortgagee of record, or servicer of the current mortgage; or
2. the current holder of a beneficial interest in a deed of trust
recorded against the property.
(3) The notices required under this subsection shall include at least the
following:
(i) a statement of the fact of the issuance of a certificate of sale;
(ii) a copy of the certificate of sale, if the holder of the certificate of
sale received the certificate of sale before the notice was sent under this paragraph;
(iii) a statement that the owner, a mortgage holder, or any other
person that has an estate or interest in the property may redeem the property at any time
until the right of redemption has been finally foreclosed under the provisions of this
subtitle;
(iv) a statement that the holder of the certificate of sale may file an
action to foreclose the right of redemption at any time after 2 months from the date of the
first notice;
(v) a statement that if the property is redeemed before an action to
foreclose the right of redemption is filed, the amount that shall be paid to redeem the
property is:
1. the total lien amount on the property at the time of sale,
with interest;
2. any taxes, interest, and penalties paid by the holder of the
certificate of sale;
3. any delinquent taxes, interest, and penalties accruing
after the date of the tax sale; and
4. the following expenses incurred by the holder of the
certificate of sale:
A. costs for recording the certificate of sale;
B. a title search fee, not to exceed $250;
C. the postage and certified mailing costs actually incurred
for the notices; and
WES MOORE, Governor Ch. 274
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D. reasonable attorney’s fees, not to exceed $500;
(vi) a statement that if the property is redeemed after an action to
foreclose the right of redemption has been filed, the amount that shall be paid to redeem
the property is the sum of:
1. the total lien amount on the property at the time of sale,
with interest;
2. any taxes, interest, and penalties paid by the holder of the
certificate of sale;
3. any delinquent taxes, interest, and penalties accruing
after the date of the tax sale; and
4. attorney’s fees and expenses to which the holder of the
certificate of sale may be entitled under § 14–843(a)(4) and (5) of this subtitle;
(vii) the provisions of § 14–843(a) of this subtitle, reproduced as they
appear in the Code;
(viii) a statement that, in Baltimore City only, the holder of the
certificate of sale is entitled to taxes, interest, and penalties paid in accordance with §
14–843(c) of this subtitle and interest at the rate of redemption under § 14–820 of this
subtitle from the date of payment to the date of redemption; and
(ix) the name, address, E–MAIL ADDRESS, and telephone number of:
1. the holder of the certificate of sale, or the holder’s agent or
attorney; and
2. the collector who made the sale.
(5) (II) 1. THIS SUBPARAGRAPH DOE S NOT APPLY IN
BALTIMORE CITY.
2. FOR OWNER –OCCUPIED RESIDENTIAL PROPERTY
SOLD UNDER THIS SUBT ITLE, PRIOR TO BEFORE THE FILING OF A COMP LAINT TO
FORECLOSE THE RIGHT OF REDEMPTION , AN OWNER OF PROPERTY SOLD UNDER
THIS SUBTITLE MAY RE QUEST THE CURRENT PAYOFF A MOUNT TO REDEEM THE
PROPERTY MAY BE REQUESTED BY THE:
A. OWNER OF THE PROPERT Y;
B. CURRENT MORTGAGEE OF THE PROPERTY , ASSIGNEE
OF A MORTGAGEE OF RE CORD, OR SERVICER OF THE C URRENT MORTGAGE ; OR Ch. 274 2023 LAWS OF MARYLAND
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C. CURRENT HOLDER OF A BENEFICIAL INTEREST IN A
DEED OF TRUST RECORD ED AGAINST THE PROPE RTY.
3. A REQUEST MADE UNDER S UBSUBPARAGRAPH 2 OF
THIS SUBPARAGRAPH SHALL BE MADE TO THE HOLDER OF THE CERTIF ICATE OF
SALE BY PHONE , E–MAIL, OR OTHER CONTACT MET HOD PROVIDED BY THE HOLDER
TO THE COLLECTOR .
4. THE PAYOFF AMOUNT TO REDEEM THE PROPERTY
PROVIDED BY THE HOLD ER OF THE CERTIFICAT E OF SALE IN ACCORDA NCE WITH
SUBSUBPARAGRAPH 2 OF THIS SUBPARAGRAPH SHALL:
A. INCLUDE ONLY THOSE E XPENSES INCURRED BEF ORE
THE HOLDER OF THE CE RTIFICATE OF SALE RE CEIVED THE REQUEST F OR THE
PAYOFF AMOUNT ; AND
B. BE DEEMED VALID FOR A PERIOD OF 30 DAYS FROM
THE DATE THE HOLDER OF THE CERTIFICATE O F SALE PROVIDES THE OWNER OF
THE PROPERTY PAYOFF AMOUNT TO THE PERSON WHO REQUESTED THE PAYOFF
AMOUNT.
[(ii)] (III) 1. In Baltimore City, for owner–occupied residential
property, prior to the filing of a complaint to foreclose the right of redemption, an owner of
property sold under this subtitle may send a request for the current payoff amount to
redeem the property.
2. A request made under subsubparagraph 1 of this
subparagraph shall be sent to the holder of the certificate of sale by first–class certified
mail, postage prepaid, return receipt requested, bearing a postmark from the United States
Postal Service.
3. Within 10 days of delivery of a notice sent under
subsubparagraph 1 of this subparagraph, the holder of a certificate of sale shall send the
owner of the property, by first–class certified mail, postage prepaid, return receipt
requested, bearing a postmark from the United States Postal Service, the current payoff
amount to redeem the property, as of the date the request was made.
4. Except as provided in subsubparagraph 6 of this
subparagraph, a holder of a certificate of sale who receives a request for a current payoff
amount to redeem property under this subparagraph may not file a complaint to foreclose
the right of redemption until the later of:
A. 20 days after the request under subsubparagraph 1 of this
subparagraph is received by the holder of the certificate of sale; WES MOORE, Governor Ch. 274
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B. 10 days after the holder of the certificate of sale sends the
owner of the property the current payoff amount to redeem the property; or
C. the date on which a holder of the certificate of sale may file
a complaint to foreclose the right of redemption under paragraphs (1) and (4) of this
subsection.
5. The payoff amount to redeem the property provided by the
holder of the certificate of sale in accordance with subsubparagraph 3 of this subparagraph
shall be deemed valid for a period of 30 days from the date the holder of the certificate of
sale sends the owner of the property the payoff amount.
6. If the owner of property sends more than 2 requests under
subsubparagraph 1 of this subparagraph, the restrictions on filing a complaint to foreclose
the right of redemption may not apply to a third or subsequent request.
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July
1, 2023.
Approved by the Governor, May 3, 2023.