EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXIS TING 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.
*hb0729*
HOUSE BILL 729
N1, D3 3lr1306
CF SB 277
By: Delegates Grossman, Buckel, Henson, and Hinebaugh
Introduced and read first time: February 8, 2023
Assigned to: Judiciary
Committee Report: Favorable with amendments
House action: Adopted
Read second time: March 24, 2023
CHAPTER ______
AN ACT concerning 1
Real Property – Sheriff’s Sales – Notice, Procedures, and Subordinate Interests 2
FOR the purpose of requiring a judgment creditor to provide certain notice to certain 3
persons of the time, place, and terms of the sale of any real property under execution 4
before the property can be sold and to file a certain affidavit; establishing that a 5
sheriff’s sale of real property extinguishes subordinate liens on the land being sold 6
under certain circumstances; authorizing a sheriff at the time of levy for real 7
property to use the assessment record in lieu of an appraisal of the property; 8
providing that certain provisions of this Act do not impair certain liens on land; 9
authorizing the Judiciary to transfer up to a certain amount of a General Fund 10
appropriation to a certain special fund; and generally relating to the enforcement of 11
liens and the sale of real property. 12
BY repealing and reenacting, with amendments, 13
Article – Courts and Judicial Proceedings 14
Section 11–502, 11–504(c), and 11–507 15
Annotated Code of Maryland 16
(2020 Replacement Volume and 2022 Supplement) 17
BY repealing and reenacting, without amendments, 18
Article – Courts and Judicial Proceedings 19
Section 11–504(a) and (b) 20
Annotated Code of Maryland 21
(2020 Replacement Volume and 2022 Supplement) 22
2 HOUSE BILL 729
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 1
That the Laws of Maryland read as follows: 2
Article – Courts and Judicial Proceedings 3
11–502. 4
(a) A sheriff shall give notice of the time, place, and terms of the sale of any 5
property under execution before the property can be sold. 6
(b) In the case of a sale of an interest in property, the notice shall be posted on 7
the courthouse door or on a bulletin board in the immediate vicinity of the door of the 8
courthouse and printed in a newspaper, published in the county where the property is 9
located at least: 10
(1) Ten days before the sale of personal property; or 11
(2) 20 days before the sale of real property. 12
(c) If the sheriff gives notice by publication in a newspaper, he may recover the 13
costs of publication from the defendant. If the defendant is unable to pay the costs, the 14
sheriff may recover the costs of publication from the plaintiff. 15
(D) IN ADDITION TO THE NO TICE REQUIREMENT UND ER SUBSECTION (A) OF 16
THIS SECTION, AT LEAST 20 DAYS BEFORE THE SALE OF REAL PROPERTY UNDER 17
EXECUTION, THE JUDGMENT CREDITO R SHALL: 18
(1) SEND NOTICE OF THE TI ME, PLACE, AND TERMS OF THE SAL E BY 19
CERTIFIED MAIL AND F IRST–CLASS MAIL TO: 20
(I) THE RECORD OWNER OF T HE PROPERTY ; 21
(II) THE HOLDER OF ANY SUB ORDINATE MORTGAGE , DEED OF 22
TRUST, OR OTHER SUBORDINATE INTEREST, INCLUDING A JUDGMENT ; AND 23
(III) ANY CONDOMINIUM ASSOC IATION OR HOMEOWNERS 24
ASSOCIATION THAT , AT LEAST 20 DAYS BEFORE THE DATE OF THE PROPOSED SALE , 25
HAS RECORDED A STATE MENT OF LIEN AGAINST THE PROPERTY UNDER T HE 26
MARYLAND CONTRACT LIEN ACT; AND 27
(2) SEND NOTICE OF THE TI ME, PLACE, AND TERMS OF THE SAL E BY 28
FIRST–CLASS MAIL TO ALL OC CUPANTS AT THE ADDRE SS OF THE PROPERTY . 29
(E) (1) THE MAILINGS REQUIRED UNDER SUBSECTION (D) OF THIS 30
SECTION SHALL BE SEN T TO THE LAS T KNOWN ADDRESS OF E ACH PERSON , 31
INCLUDING TO THE LAS T ADDRESS REASONABLY ASCERTAINABLE FROM A 32 HOUSE BILL 729 3
DOCUMENT RECORDED , INDEXED, AND AVAILABLE FOR PU BLIC INSPECTION AT T HE 1
TIME OF THE MAILING . 2
(2) IN THE CASE OF A SUBO RDINATE MORTGAGE OR DEED OF TRUST , 3
THE NOTICE SHALL BE SENT TO THE LAST KNOWN HO LDER OF THE MORTGAGE , THE 4
LAST KNOWN BENEFICIA RY OF A DEED OF TRUS T, OR A TRUSTEE OR BENE FICIARY 5
OF A DEED OF TRUST R EASONABLY ASCERTAINA BLE ON A REVIEW OF T HE LAND 6
RECORDS FOR THE APPL ICABLE COUNTY . 7
(F) THE JUDGMENT CREDITOR SHALL FILE AN AFFIDAVIT WI TH THE COURT: 8
(1) STATING THAT THE INDI VIDUAL HAS COMPLIED WITH THE NOTICE 9
REQUIREMENTS UNDER S UBSECTION (D) OF THIS SECTION; OR 10
(2) (I) STATING THAT THE IDEN TITY OR ADDRESS OF T HE 11
BORROWER , RECORD OWNER , OR HOLDER OF A SUBORDINA TE INTEREST IS NOT 12
REASONABLY ASCERTAIN ABLE; AND 13
(II) DESCRIBING THE REASON ABLE, GOOD FAITH EFFORTS 14
THAT THE INDIVIDUAL MADE TO ASCERTAIN TH E IDENTITY OR ADDRES S OF THE 15
BORROWER , RECORD OWNER , OR HOLDER OF A SUBOR DINATE INTEREST . 16
(G) IF THE REQUIREMENTS O F THIS SECTION ARE S ATISFIED AND THE 17
JUDGMENT CREDITOR HA S COMPLIED WITH ANY APPLICABLE RULES ADO PTED BY 18
THE SUPREME COURT OF MARYLAND, A A SHERIFF’S SALE OF REAL PROPE RTY 19
EXTINGUISHES ANY SUB ORDINATE LIEN OR INT EREST ON THE LAND SU BJECT TO 20
THE SALE. 21
11–504. 22
(a) In this section, “value” means fair market value as of the date upon which the 23
execution or other judicial process becomes effective against the property of the debtor, or 24
the date of filing the petition under the federal Bankruptcy Code. 25
(b) The following items are exempt from execution on a judgment: 26
(1) Wearing apparel, books, tools, instruments, or appliances, in an amount 27
not to exceed $5,000 in value necessary for the practice of any trade or profession except 28
those kept for sale, lease, or barter. 29
(2) Except as provided in subsection (i) of this section, money payable in 30
the event of sickness, accident, injury, or death of any person, including compensation for 31
loss of future earnings. This exemption includes but is not limited to money payable on 32
account of judgments, arbitrations, compromises, insurance, benefits, compensation, and 33 4 HOUSE BILL 729
relief. Disability income benefits are not exempt if the judgment is for necessities contracted 1
for after the disability is incurred. 2
(3) Professionally prescribed health aids for the debtor or any dependent of 3
the debtor. 4
(4) The debtor’s interest, not to exceed $1,000 in value, in household 5
furnishings, household goods, wearing apparel, appliances, books, animals kept as pets, 6
and other items that are held primarily for the personal, family, or household use of the 7
debtor or any dependent of the debtor. 8
(5) Cash or property of any kind equivalent in value to $6,000 is exempt, if 9
within 30 days from the date of the attachment or the levy by the sheriff, the debtor elects 10
to exempt cash or selected items of property in an amount not to exceed a cumulative value 11
of $6,000. 12
(6) Money payable or paid in accordance with an agreement or court order 13
for child support. 14
(7) Money payable or paid in accordance with an agreement or court order 15
for alimony to the same extent that wages are exempt from attachment under § 16
15–601.1(b)(1)(ii) or (2)(i) of the Commercial Law Article. 17
(8) The debtor’s beneficial interest in any trust property that is immune 18
from the claims of the debtor’s creditors under § 14.5–511 of the Estates and Trusts Article. 19
(9) With respect to claims by a separate creditor of a husband or wife, trust 20
property that is immune from the claims of the separate creditors of the husband or wife 21
under § 14.5–511 of the Estates and Trusts Article. 22
(c) (1) (I) [In] EXCEPT AS PROVIDED IN SUBPARAGRAPH (II) OF THIS 23
PARAGRAPH , IN order to determine whether the property listed in subsection (b)(4) and 24
(5) of this section is subject to execution, the sheriff shall appraise the property at the time 25
of levy. 26
(II) IF PROPERTY LISTED IN SUBSECTION (B)(4) AND (5) OF THIS 27
SECTION IS REAL PROPERTY , THE SHERIFF MAY USE THE ASSESSMENT RECOR D IN 28
LIEU OF AN APPRAISAL . 29
(2) The sheriff shall return the appraisal with the writ. 30
[(2)] (3) An appraisal made by the sheriff under this subsection is subject 31
to review by the court on motion of the debtor. 32
[(3)] (4) Procedures will be as prescribed by rules issued by the Supreme 33
Court of Maryland. 34 HOUSE BILL 729 5
11–507. 1
[The] NOTWITHSTANDING ANY O THER PROVISION OF TH IS SUBTITLE, THE 2
provisions of this subtitle relative to exemptions do not impair a: 3
(1) Vendor’s purchase money lien on land; 4
(2) Mechanics’ lien; 5
(3) Tax lien; 6
(4) Mortgage; deed of trust; or other security interest; OR 7
(5) LIEN ON LAND AFFECTED BY A JUDGMENT IN FAV OR OF A LOCAL 8
GOVERNMENT FOR REAL PROPERTY MAINTENANCE VIOLATIONS OR NUISANCE 9
CONDITION VIOLATIONS THAT IS INDEXED AND RECORDED IN ACCORDAN CE WITH 10
THE MARYLAND RULES. 11
SECTION 2. AND BE IT FURTHER ENACTED, That: 12
(a) Notwithstanding any other provision of law, on or before June 30, 2023, the 13
Judiciary may transfer up to $12,000,000 of the fiscal year 2023 General Fund 14
appropriation for the Judiciary to the Circuit Court Real Property Records Improvement 15
Fund established under § 13–602 of the Courts and Judicial Proceedings Article. 16
(b) Notwithstanding § 7–302 of the State Finance and Procurement Article or any 17
other provision of law, any amount transferred under subsection (a) of this section may not 18
revert to the General Fund of the State. 19
SECTION 2. 3. AND BE IT FURTHER ENACTED, That this Act shall ta ke effect 20
October 1, 2023. 21
Approved:
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Governor.
________________________________________________________________________________
Speaker of the House of Delegates.
________________________________________________________________________________
President of the Senate.