MD
Maryland House Bill HB729

Maryland 2023 Regular Session

Maryland House Bill HB729 Compare Versions

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33 EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
44 [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.
85 *hb0729*
96
107 HOUSE BILL 729
118 N1, D3 3lr1306
129 CF SB 277
1310 By: Delegates Grossman, Buckel, Henson, and Hinebaugh
1411 Introduced and read first time: February 8, 2023
1512 Assigned to: Judiciary
16-Committee Report: Favorable with amendments
17-House action: Adopted
18-Read second time: March 24, 2023
1913
20-CHAPTER ______
14+A BILL ENTITLED
2115
2216 AN ACT concerning 1
2317
2418 Real Property – Sheriff’s Sales – Notice, Procedures, and Subordinate Interests 2
2519
2620 FOR the purpose of requiring a judgment creditor to provide certain notice to certain 3
2721 persons of the time, place, and terms of the sale of any real property under execution 4
2822 before the property can be sold and to file a certain affidavit; establishing that a 5
2923 sheriff’s sale of real property extinguishes subordinate liens on the land being sold 6
3024 under certain circumstances; authorizing a sheriff at the time of levy for real 7
3125 property to use the assessment record in lieu of an appraisal of the property; 8
32-providing that certain provisions of this Act do not impair certain liens on land; 9
33-authorizing the Judiciary to transfer up to a certain amount of a General Fund 10
34-appropriation to a certain special fund; and generally relating to the enforcement of 11
35-liens and the sale of real property. 12
26+providing that certain provisions of this Act do not impair certain liens on land; and 9
27+generally relating to the enforcement of liens and the sale of real property. 10
3628
37-BY repealing and reenacting, with amendments, 13
38- Article – Courts and Judicial Proceedings 14
39-Section 11–502, 11–504(c), and 11–507 15
40- Annotated Code of Maryland 16
41- (2020 Replacement Volume and 2022 Supplement) 17
29+BY repealing and reenacting, with amendments, 11
30+ Article – Courts and Judicial Proceedings 12
31+Section 11–502, 11–504(c), and 11–507 13
32+ Annotated Code of Maryland 14
33+ (2020 Replacement Volume and 2022 Supplement) 15
4234
43-BY repealing and reenacting, without amendments, 18
44- Article – Courts and Judicial Proceedings 19
45-Section 11–504(a) and (b) 20
46- Annotated Code of Maryland 21
47- (2020 Replacement Volume and 2022 Supplement) 22
35+BY repealing and reenacting, without amendments, 16
36+ Article – Courts and Judicial Proceedings 17
37+Section 11–504(a) and (b) 18
38+ Annotated Code of Maryland 19
39+ (2020 Replacement Volume and 2022 Supplement) 20
40+
41+ SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 21
42+That the Laws of Maryland read as follows: 22
43+
44+Article – Courts and Judicial Proceedings 23
45+
46+11–502. 24
4847 2 HOUSE BILL 729
4948
5049
51- SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 1
52-That the Laws of Maryland read as follows: 2
50+ (a) A sheriff shall give notice of the time, place, and terms of the sale of any 1
51+property under execution before the property can be sold. 2
5352
54-Article – Courts and Judicial Proceedings 3
53+ (b) In the case of a sale of an interest in property, the notice shall be posted on 3
54+the courthouse door or on a bulletin board in the immediate vicinity of the door of the 4
55+courthouse and printed in a newspaper, published in the county where the property is 5
56+located at least: 6
5557
56-11–502. 4
58+ (1) Ten days before the sale of personal property; or 7
5759
58- (a) A sheriff shall give notice of the time, place, and terms of the sale of any 5
59-property under execution before the property can be sold. 6
60+ (2) 20 days before the sale of real property. 8
6061
61- (b) In the case of a sale of an interest in property, the notice shall be posted on 7
62-the courthouse door or on a bulletin board in the immediate vicinity of the door of the 8
63-courthouse and printed in a newspaper, published in the county where the property is 9
64-located at least: 10
62+ (c) If the sheriff gives notice by publication in a newspaper, he may recover the 9
63+costs of publication from the defendant. If the defendant is unable to pay the costs, the 10
64+sheriff may recover the costs of publication from the plaintiff. 11
6565
66- (1) Ten days before the sale of personal property; or 11
66+ (D) IN ADDITION TO THE NO TICE REQUIREMENT UND ER SUBSECTION (A) OF 12
67+THIS SECTION, AT LEAST 20 DAYS BEFORE THE SALE OF REAL PROPERTY UND ER 13
68+EXECUTION, THE JUDGMENT CREDITO R SHALL: 14
6769
68- (2) 20 days before the sale of real property. 12
70+ (1) SEND NOTICE OF THE TI ME, PLACE, AND TERMS OF THE SAL E BY 15
71+CERTIFIED MAIL AND F IRST–CLASS MAIL TO: 16
6972
70- (c) If the sheriff gives notice by publication in a newspaper, he may recover the 13
71-costs of publication from the defendant. If the defendant is unable to pay the costs, the 14
72-sheriff may recover the costs of publication from the plaintiff. 15
73+ (I) THE RECORD OWNER OF THE PROPERTY ; 17
7374
74- (D) IN ADDITION TO THE NO TICE REQUIREMENT UND ER SUBSECTION (A) OF 16
75-THIS SECTION, AT LEAST 20 DAYS BEFORE THE SALE OF REAL PROPERTY UNDER 17
76-EXECUTION, THE JUDGMENT CREDITO R SHALL: 18
75+ (II) THE HOLDER OF ANY SUB ORDINATE MORTGAGE , DEED OF 18
76+TRUST, OR OTHER SUBORDINATE INTEREST, INCLUDING A JUDGMENT ; AND 19
7777
78- (1) SEND NOTICE OF THE TI ME, PLACE, AND TERMS OF THE SAL E BY 19
79-CERTIFIED MAIL AND F IRST–CLASS MAIL TO: 20
78+ (III) ANY CONDOMINIUM ASSOC IATION OR HOMEOWNERS 20
79+ASSOCIATION THAT , AT LEAST 20 DAYS BEFORE THE DATE OF THE PROPOSED S ALE, 21
80+HAS RECORDED A STATE MENT OF LIEN AGAINST THE PROPERTY UNDER T HE 22
81+MARYLAND CONTRACT LIEN ACT; AND 23
8082
81- (I) THE RECORD OWNER OF T HE PROPERTY ; 21
83+ (2) SEND NOTICE OF THE TI ME, PLACE, AND TERMS OF THE SAL E BY 24
84+FIRST–CLASS MAIL TO ALL OC CUPANTS AT THE ADDRE SS OF THE PROPERTY . 25
8285
83- (II) THE HOLDER OF ANY SUB ORDINATE MORTGAGE , DEED OF 22
84-TRUST, OR OTHER SUBORDINATE INTEREST, INCLUDING A JUDGMENT ; AND 23
86+ (E) (1) THE MAILINGS R EQUIRED UNDER SUBSEC TION (D) OF THIS 26
87+SECTION SHALL BE SEN T TO THE LAST KNOWN ADDRESS OF EACH PERS ON, 27
88+INCLUDING TO THE LAS T ADDRESS REASONABLY ASCERTAINABLE FROM A 28
89+DOCUMENT RECORDED , INDEXED, AND AVAILABLE FOR PU BLIC INSPECTION AT T HE 29
90+TIME OF THE MAILING . 30
8591
86- (III) ANY CONDOMINIUM ASSOC IATION OR HOMEOWNERS 24
87-ASSOCIATION THAT , AT LEAST 20 DAYS BEFORE THE DATE OF THE PROPOSED SALE , 25
88-HAS RECORDED A STATE MENT OF LIEN AGAINST THE PROPERTY UNDER T HE 26
89-MARYLAND CONTRACT LIEN ACT; AND 27
90-
91- (2) SEND NOTICE OF THE TI ME, PLACE, AND TERMS OF THE SAL E BY 28
92-FIRST–CLASS MAIL TO ALL OC CUPANTS AT THE ADDRE SS OF THE PROPERTY . 29
93-
94- (E) (1) THE MAILINGS REQUIRED UNDER SUBSECTION (D) OF THIS 30
95-SECTION SHALL BE SEN T TO THE LAS T KNOWN ADDRESS OF E ACH PERSON , 31
96-INCLUDING TO THE LAS T ADDRESS REASONABLY ASCERTAINABLE FROM A 32 HOUSE BILL 729 3
92+ (2) IN THE CASE OF A SUBO RDINATE MORTGAGE OR DEED OF TRUST , 31
93+THE NOTICE SHALL BE SENT TO THE LAST KNO WN HOLDER OF THE MOR TGAGE, THE 32
94+LAST KNOWN BENEFICIA RY OF A DEED OF TRUS T, OR A TRUSTEE OR BENE FICIARY 33 HOUSE BILL 729 3
9795
9896
99-DOCUMENT RECORDED , INDEXED, AND AVAILABLE FOR PU BLIC INSPECTION AT T HE 1
100-TIME OF THE MAILING . 2
97+OF A DEED OF TRUST R EASONABLY ASCERTAINA BLE ON A REV IEW OF THE LAND 1
98+RECORDS FOR THE APPL ICABLE COUNTY . 2
10199
102- (2) IN THE CASE OF A SUBO RDINATE MORTGAGE OR DEED OF TRUST , 3
103-THE NOTICE SHALL BE SENT TO THE LAST KNOWN HO LDER OF THE MORTGAGE , THE 4
104-LAST KNOWN BENEFICIA RY OF A DEED OF TRUS T, OR A TRUSTEE OR BENE FICIARY 5
105-OF A DEED OF TRUST R EASONABLY ASCERTAINA BLE ON A REVIEW OF T HE LAND 6
106-RECORDS FOR THE APPL ICABLE COUNTY . 7
100+ (F) THE JUDGMENT CREDITOR SHALL FILE AN AFFIDA VIT WITH THE COURT : 3
107101
108- (F) THE JUDGMENT CREDITOR SHALL FILE AN AFFIDAVIT WI TH THE COURT: 8
102+ (1) STATING THAT THE INDI VIDUAL HAS COMPLIED WITH THE NOTICE 4
103+REQUIREMENTS UNDER S UBSECTION (D) OF THIS SECTION; OR 5
109104
110- (1) STATING THAT THE INDI VIDUAL HAS COMPLIED WITH THE NOTICE 9
111-REQUIREMENTS UNDER S UBSECTION (D) OF THIS SECTION; OR 10
105+ (2) (I) STATING THAT THE IDENTITY OR ADDRESS OF THE 6
106+BORROWER , RECORD OWNER , OR HOLDER OF A SUBOR DINATE INTEREST IS N OT 7
107+REASONABLY ASCERTAIN ABLE; AND 8
112108
113- (2) (I) STATING THAT THE IDEN TITY OR ADDRESS OF T HE 11
114-BORROWER , RECORD OWNER , OR HOLDER OF A SUBORDINA TE INTEREST IS NOT 12
115-REASONABLY ASCERTAIN ABLE; AND 13
109+ (II) DESCRIBING THE REASON ABLE, GOOD FAITH EFFORTS 9
110+THAT THE INDIVIDUAL MADE TO ASCERTAIN TH E IDENTITY OR ADDRES S OF THE 10
111+BORROWER , RECORD OWNER , OR HOLDER OF A SUBOR DINATE INTEREST . 11
116112
117- (II) DESCRIBING THE REASON ABLE, GOOD FAITH EFFORTS 14
118-THAT THE INDIVIDUAL MADE TO ASCERTAIN TH E IDENTITY OR ADDRES S OF THE 15
119-BORROWER , RECORD OWNER , OR HOLDER OF A SUBOR DINATE INTEREST . 16
113+ (G) IF THE REQUIREMENTS O F THIS SECTION ARE S ATISFIED AND THE 12
114+JUDGMENT CREDITOR HA S COMPLIED WITH ANY APPLICABLE RULES ADO PTED BY 13
115+THE SUPREME COURT OF MARYLAND, A SHERIFF’S SALE OF REAL PRO PERTY 14
116+EXTINGUISHES ANY SUB ORDINATE LIEN OR INT EREST ON THE LAND SU BJECT TO 15
117+THE SALE. 16
120118
121- (G) IF THE REQUIREMENTS O F THIS SECTION ARE S ATISFIED AND THE 17
122-JUDGMENT CREDITOR HA S COMPLIED WITH ANY APPLICABLE RULES ADO PTED BY 18
123-THE SUPREME COURT OF MARYLAND, A A SHERIFF’S SALE OF REAL PROPE RTY 19
124-EXTINGUISHES ANY SUB ORDINATE LIEN OR INT EREST ON THE LAND SU BJECT TO 20
125-THE SALE. 21
119+11–504. 17
126120
127-11–504. 22
121+ (a) In this section, “value” means fair market value as of the date upon which the 18
122+execution or other judicial process becomes effective against the property of the debtor, or 19
123+the date of filing the petition under the federal Bankruptcy Code. 20
128124
129- (a) In this section, “value” means fair market value as of the date upon which the 23
130-execution or other judicial process becomes effective against the property of the debtor, or 24
131-the date of filing the petition under the federal Bankruptcy Code. 25
125+ (b) The following items are exempt from execution on a judgment: 21
132126
133- (b) The following items are exempt from execution on a judgment: 26
127+ (1) Wearing apparel, books, tools, instruments, or appliances, in an amount 22
128+not to exceed $5,000 in value necessary for the practice of any trade or profession except 23
129+those kept for sale, lease, or barter. 24
134130
135- (1) Wearing apparel, books, tools, instruments, or appliances, in an amount 27
136-not to exceed $5,000 in value necessary for the practice of any trade or profession except 28
137-those kept for sale, lease, or barter. 29
131+ (2) Except as provided in subsection (i) of this section, money payable in 25
132+the event of sickness, accident, injury, or death of any person, including compensation for 26
133+loss of future earnings. This exemption includes but is not limited to money payable on 27
134+account of judgments, arbitrations, compromises, insurance, benefits, compensation, and 28
135+relief. Disability income benefits are not exempt if the judgment is for necessities contracted 29
136+for after the disability is incurred. 30
138137
139- (2) Except as provided in subsection (i) of this section, money payable in 30
140-the event of sickness, accident, injury, or death of any person, including compensation for 31
141-loss of future earnings. This exemption includes but is not limited to money payable on 32
142-account of judgments, arbitrations, compromises, insurance, benefits, compensation, and 33 4 HOUSE BILL 729
138+ (3) Professionally prescribed health aids for the debtor or any dependent of 31
139+the debtor. 32
140+ 4 HOUSE BILL 729
143141
144142
145-relief. Disability income benefits are not exempt if the judgment is for necessities contracted 1
146-for after the disability is incurred. 2
143+ (4) The debtor’s interest, not to exceed $1,000 in value, in household 1
144+furnishings, household goods, wearing apparel, appliances, books, animals kept as pets, 2
145+and other items that are held primarily for the personal, family, or household use of the 3
146+debtor or any dependent of the debtor. 4
147147
148- (3) Professionally prescribed health aids for the debtor or any dependent of 3
149-the debtor. 4
148+ (5) Cash or property of any kind equivalent in value to $6,000 is exempt, if 5
149+within 30 days from the date of the attachment or the levy by the sheriff, the debtor elects 6
150+to exempt cash or selected items of property in an amount not to exceed a cumulative value 7
151+of $6,000. 8
150152
151- (4) The debtor’s interest, not to exceed $1,000 in value, in household 5
152-furnishings, household goods, wearing apparel, appliances, books, animals kept as pets, 6
153-and other items that are held primarily for the personal, family, or household use of the 7
154-debtor or any dependent of the debtor. 8
153+ (6) Money payable or paid in accordance with an agreement or court order 9
154+for child support. 10
155155
156- (5) Cash or property of any kind equivalent in value to $6,000 is exempt, if 9
157-within 30 days from the date of the attachment or the levy by the sheriff, the debtor elects 10
158-to exempt cash or selected items of property in an amount not to exceed a cumulative value 11
159-of $6,000. 12
156+ (7) Money payable or paid in accordance with an agreement or court order 11
157+for alimony to the same extent that wages are exempt from attachment under § 12
158+15–601.1(b)(1)(ii) or (2)(i) of the Commercial Law Article. 13
160159
161- (6) Money payable or paid in accordance with an agreement or court order 13
162-for child support. 14
160+ (8) The debtor’s beneficial interest in any trust property that is immune 14
161+from the claims of the debtor’s creditors under § 14.5–511 of the Estates and Trusts Article. 15
163162
164- (7) Money payable or paid in accordance with an agreement or court order 15
165-for alimony to the same extent that wages are exempt from attachment under § 16
166-15–601.1(b)(1)(ii) or (2)(i) of the Commercial Law Article. 17
163+ (9) With respect to claims by a separate creditor of a husband or wife, trust 16
164+property that is immune from the claims of the separate creditors of the husband or wife 17
165+under § 14.5–511 of the Estates and Trusts Article. 18
167166
168- (8) The debtor’s beneficial interest in any trust property that is immune 18
169-from the claims of the debtor’s creditors under § 14.5–511 of the Estates and Trusts Article. 19
167+ (c) (1) (I) [In] EXCEPT AS PROVIDED IN SUBPARAGRAPH (II) OF THIS 19
168+PARAGRAPH , IN order to determine whether the property listed in subsection (b)(4) and 20
169+(5) of this section is subject to execution, the sheriff shall appraise the property at the time 21
170+of levy. 22
170171
171- (9) With respect to claims by a separate creditor of a husband or wife, trust 20
172-property that is immune from the claims of the separate creditors of the husband or wife 21
173-under § 14.5–511 of the Estates and Trusts Article. 22
172+ (II) IF PROPERTY LISTED IN SUBSECTION (B)(4) AND (5) OF THIS 23
173+SECTION IS REAL PROPERTY , THE SHERIFF MAY USE THE ASSESSMENT RECOR D IN 24
174+LIEU OF AN APPRAISAL . 25
174175
175- (c) (1) (I) [In] EXCEPT AS PROVIDED IN SUBPARAGRAPH (II) OF THIS 23
176-PARAGRAPH , IN order to determine whether the property listed in subsection (b)(4) and 24
177-(5) of this section is subject to execution, the sheriff shall appraise the property at the time 25
178-of levy. 26
176+ (2) The sheriff shall return the appraisal with the writ. 26
179177
180- (II) IF PROPERTY LISTED IN SUBSECTION (B)(4) AND (5) OF THIS 27
181-SECTION IS REAL PROPERTY , THE SHERIFF MAY USE THE ASSESSMENT RECOR D IN 28
182-LIEU OF AN APPRAISAL . 29
178+ [(2)] (3) An appraisal made by the sheriff under this subsection is subject 27
179+to review by the court on motion of the debtor. 28
183180
184- (2) The sheriff shall return the appraisal with the writ. 30
181+ [(3)] (4) Procedures will be as prescribed by rules issued by the Supreme 29
182+Court of Maryland. 30
185183
186- [(2)] (3) An appraisal made by the sheriff under this subsection is subject 31
187-to review by the court on motion of the debtor. 32
184+11–507. 31
188185
189- [(3)] (4) Procedures will be as prescribed by rules issued by the Supreme 33
190-Court of Maryland. 34 HOUSE BILL 729 5
186+ [The] NOTWITHSTANDING ANY O THER PROVISION OF TH IS SUBTITLE, THE 32
187+provisions of this subtitle relative to exemptions do not impair a: 33
188+ HOUSE BILL 729 5
191189
192190
191+ (1) Vendor’s purchase money lien on land; 1
193192
194-11–507. 1
193+ (2) Mechanics’ lien; 2
195194
196- [The] NOTWITHSTANDING ANY O THER PROVISION OF TH IS SUBTITLE, THE 2
197-provisions of this subtitle relative to exemptions do not impair a: 3
195+ (3) Tax lien; 3
198196
199- (1) Vendor’s purchase money lien on land; 4
197+ (4) Mortgage; deed of trust; or other security interest; OR 4
200198
201- (2) Mechanics’ lien; 5
199+ (5) LIEN ON LAND AFFECTED BY A JUDGMENT IN FAV OR OF A LOCAL 5
200+GOVERNMENT FOR REAL PROPERTY MAINTENANCE VIOLATIONS OR NUISANCE 6
201+CONDITION VIOLATIONS THAT IS INDEXED AND RECORDED IN ACCORDAN CE WITH 7
202+THE MARYLAND RULES. 8
202203
203- (3) Tax lien; 6
204+ SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 9
205+October 1, 2023. 10
204206
205- (4) Mortgage; deed of trust; or other security interest; OR 7
206-
207- (5) LIEN ON LAND AFFECTED BY A JUDGMENT IN FAV OR OF A LOCAL 8
208-GOVERNMENT FOR REAL PROPERTY MAINTENANCE VIOLATIONS OR NUISANCE 9
209-CONDITION VIOLATIONS THAT IS INDEXED AND RECORDED IN ACCORDAN CE WITH 10
210-THE MARYLAND RULES. 11
211-
212- SECTION 2. AND BE IT FURTHER ENACTED, That: 12
213-
214- (a) Notwithstanding any other provision of law, on or before June 30, 2023, the 13
215-Judiciary may transfer up to $12,000,000 of the fiscal year 2023 General Fund 14
216-appropriation for the Judiciary to the Circuit Court Real Property Records Improvement 15
217-Fund established under § 13–602 of the Courts and Judicial Proceedings Article. 16
218-
219- (b) Notwithstanding § 7–302 of the State Finance and Procurement Article or any 17
220-other provision of law, any amount transferred under subsection (a) of this section may not 18
221-revert to the General Fund of the State. 19
222-
223- SECTION 2. 3. AND BE IT FURTHER ENACTED, That this Act shall ta ke effect 20
224-October 1, 2023. 21
225-
226-
227-
228-
229-
230-Approved:
231-________________________________________________________________________________
232- Governor.
233-________________________________________________________________________________
234- Speaker of the House of Delegates.
235-________________________________________________________________________________
236- President of the Senate.