Maryland 2023 Regular Session

Maryland House Bill HB865 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2
3	3	EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
4	4	[Brackets] indicate matter deleted from existing law.
5	5	hb0865
6	6
7	7	HOUSE BILL 865
8	8	N1, N2, Q1 3lr2081
9	9	CF SB 769
10	10	By: Baltimore City Delegation
11	11	Introduced and read first time: February 9, 2023
12	12	Assigned to: Judiciary
13	13
14	14	A BILL ENTITLED
15	15
16	16	AN ACT concerning 1
17	17
18	18	Baltimore City – Residential Real Property – Disclaimed Property and 2
19	19	Exemptions From Prepayment 3
20	20
21	21	FOR the purpose of authorizing Baltimore City to acquire certain disclaimed residential 4
22	22	real property of a decedent’s estate under certain circumstances; prohibiting a person 5
23	23	from seeking to recover an interest in certain residential real property, or the value 6
24	24	of that property, if Baltimore City acquires title to the property in accordance with 7
25	25	this Act; exempting, under certain circumstances, grants of certain residential real 8
26	26	property from the estate of a decedent to a certain heir of the decedent and transfers 9
27	27	of certain residential real property disclaimed by an estate from certain provisions 10
28	28	of law requiring the prepayment of certain real property taxes; and generally 11
29	29	relating to residential real property in Baltimore City. 12
30	30
31	31	BY repealing and reenacting, with amendments, 13
32	32	Article – Estates and Trusts 14
33	33	Section 3–105 and 10–103(b) 15
34	34	Annotated Code of Maryland 16
35	35	(2022 Replacement Volume and 2022 Supplement) 17
36	36
37	37	BY adding to 18
38	38	Article – Estates and Trusts 19
39	39	Section 10–106 20
40	40	Annotated Code of Maryland 21
41	41	(2022 Replacement Volume and 2022 Supplement) 22
42	42
43	43	BY repealing and reenacting, without amendments, 23
44	44	Article – Real Property 24
45	45	Section 3–104(a) and (b) 25
46	46	Annotated Code of Maryland 26
47	47	(2015 Replacement Volume and 2022 Supplement) 27
48	48	2 HOUSE BILL 865
49	49
50	50
51	51	BY repealing and reenacting, with amendments, 1
52	52	Article – Real Property 2
53	53	Section 3–104(c) 3
54	54	Annotated Code of Maryland 4
55	55	(2015 Replacement Volume and 2022 Supplement) 5
56	56
57	57	SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 6
58	58	That the Laws of Maryland read as follows: 7
59	59
60	60	Article – Estates and Trusts 8
61	61
62	62	3–105. 9
63	63
64	64	(a) (1) (i) The provisions of this subsection are applicable if there is no 10
65	65	person entitled to take under §§ 3–102 through 3–104 of this subtitle. 11
66	66
67	67	(ii) The provisions of this subsection do not apply to [any]: 12
68	68
69	69	1. ANY portion of a decedent’s estate that is comprised of 13
70	70	land that is the subject of an application for a certificate of reservation for public use under 14
71	71	Title 13, Subtitle 3 of the Real Property Article; OR 15
72	72
73	73	2. RESIDENTIAL REAL PROPERTY OF A DECEDENT ’S 16
74	74	ESTATE THAT IS DISCLAIMED B Y A PERSON IN ACCORDAN CE WITH TITLE 9, 17
75	75	SUBTITLE 2 OF THIS ARTICLE AND TITLE TO WHICH I S ACQUIRED BY BALTIMORE 18
76	76	CITY UNDER § 10–106 OF THIS ARTICLE. 19
77	77
78	78	(2) (i) If an individual was a recipient of long–term care benefits under 20
79	79	the Maryland Medical Assistance Program at the time of the individual’s death, the net 21
80	80	estate shall be converted to cash and paid to the Maryland Department of Health, and shall 22
81	81	be applied for the administration of the program. 23
82	82
83	83	(ii) If the provisions of subparagraph (i) of this paragraph are not 24
84	84	applicable, the net estate shall be converted to cash and paid to the board of education in 25
85	85	the county in which the letters were granted, and shall be applied for the use of the public 26
86	86	schools in the county. 27
87	87
88	88	(b) (1) After payment has been made to the Maryland Department of Health 28
89	89	or to the board of education, if a claim for refund is filed by a relative within the fifth degree 29
90	90	living at the death of the decedent or by the personal representative of the relative, and the 30
91	91	claim is allowed, the claimant shall be entitled to a refund, without interest, of the sum 31
92	92	paid. 32
93	93
94	94	(2) A claim for refund under this subsection may not be filed after the later 33
95	95	of: 34
96	96	HOUSE BILL 865 3
97	97
98	98
99	99	(i) 3 years after the death of the decedent; or 1
100	100
101	101	(ii) 1 year after the time of distribution of the property. 2
102	102
103	103	10–103. 3
104	104
105	105	(b) (1) Except as provided in [§ 10–102] §§ 10–102 AND 10–106 of this 4
106	106	subtitle and § 7–308 of the Tax – General Article, the right of a person seeking to recover 5
107	107	property improperly distributed, or the value of it, from a person to whom property has 6
108	108	been distributed is forever barred at the later of: 7
109	109
110	110	(i) Three years from the death of the decedent; or 8
111	111
112	112	(ii) One year from the time of distribution of the property. 9
113	113
114	114	(2) This subsection does not bar recovery of property or the value of it 10
115	115	received as the result of the heir’s or legatee’s participation in a fraudulent distribution. 11
116	116
117	117	10–106. 12
118	118
119	119	(A) THIS SECTION SHALL APPLY ONLY IN BALTIMORE CITY. 13
120	120
121	121	(B) IF RESIDENTIAL REAL PRO PERTY HAS BEEN DISCLAIMED FROM A 14
122	122	DECEDENT’S ESTATE AS A DISCLA IMED INTEREST UNDER TITLE 9, SUBTITLE 2 OF 15
123	123	THIS ARTICLE, BALTIMORE CITY MAY ACQUIRE TITLE TO THE PROPERT Y IF: 16
124	124
125	125	(1) THE RESIDENTIAL REAL PRO PERTY IS LOCATED IN BALTIMORE 17
126	126	CITY; 18
127	127
128	128	(2) THE ESTATE WAS CLOSED IN BALTIMORE CITY; AND 19
129	129
130	130	(3) THE APPOINTMENT OF THE P ERSONAL REPRESENTATIVE HAS 20
131	131	TERMINATED UNDER § 10–101 OF THIS SUBTITLE. 21
132	132
133	133	(C) IF BALTIMORE CITY SEEKS TO ACQUIRE TITLE TO THE RESIDEN TIAL 22
134	134	REAL PROPERTY UNDER THIS SECTION, THE ESTATE NEED NOT BE REOPENED AND 23
135	135	NOTICE NEED NOT BE PROVIDED TO ANY INTERESTED PA RTIES. 24
136	136
137	137	(D) THE RIGHT OF A PERSON SEEKING TO RECOVER AN INTEREST IN THE 25
138	138	DISCLAIMED RESIDENTIAL REAL PRO PERTY, OR THE VALUE OF THAT PROPERTY , IS 26
139	139	FOREVER BARRED UNDER THIS SECTION I F BALTIMORE CITY ACQUIRES TITLE T O 27
140	140	THE PROPERTY IN ACCORDANCE WITH T HIS SECTION. 28
141	141
142	142	Article – Real Property 29
143	143	4 HOUSE BILL 865
144	144
145	145
146	146	3–104. 1
147	147
148	148	(a) (1) The Clerk of the Circuit Court may record an instrument that effects a 2
149	149	change of ownership if the instrument is: 3
150	150
151	151	(i) Endorsed with the certificate of the collector of taxes of the 4
152	152	county in which the property is assessed, required under subsection (b) of this section; 5
153	153
154	154	(ii) 1. Accompanied by a complete intake sheet; or 6
155	155
156	156	2. Endorsed by the assessment office for the county as 7
157	157	provided in subsection (g)(8) of this section; and 8
158	158
159	159	(iii) Accompanied by a copy of the instrument, and any survey, for 9
160	160	submission to the Department of Assessments and Taxation. 10
161	161
162	162	(2) The Supervisor of Assessments shall transfer ownership of property in 11
163	163	the assessment records, effective as of the date of recordation, upon receipt from the Clerk 12
164	164	of the Circuit Court of a copy of the instrument, the completed intake sheet, and any survey 13
165	165	submitted under paragraph (1) of this subsection. 14
166	166
167	167	(b) (1) (i) Except as provided in subsection (c) of this section, property may 15
168	168	not be transferred on the assessment books or records until: 16
169	169
170	170	1. All public taxes, assessments, and charges currently due 17
171	171	and owed on the property have been paid to the treasurer, tax collector, or director of 18
172	172	finance of the county in which the property is assessed; and 19
173	173
174	174	2. All taxes on personal property in the county due by the 20
175	175	transferor have been paid when all land owned by the transferor in the county is being 21
176	176	transferred. 22
177	177
178	178	(ii) The certificate of the collecting agent designated by law, showing 23
179	179	that all taxes, assessments, and charges have been paid, shall be endorsed on the deed, and 24
180	180	the endorsement shall be sufficient authority for transfer on the assessment books. 25
181	181
182	182	(2) (i) Except as provided in subsection (c) of this section, in Allegany, 26
183	183	Cecil, Charles, Dorchester, Harford, Howard, Kent, Queen Anne’s, Somerset, and St. 27
184	184	Mary’s counties no property may be transferred on the assessment books or records until: 28
185	185
186	186	1. All public taxes, assessments, any charges due a 29
187	187	municipal corporation, and charges due on the property have been paid as required by law; 30
188	188	and 31
189	189
190	190	2. All taxes on personal property in the county due by the 32
191	191	transferor have been paid when all land owned by the transferor in the county and 33
192	192	municipal corporation is being transferred. 34 HOUSE BILL 865 5
193	193
194	194
195	195
196	196	(ii) The certificate of the collecting agent and municipal corporation 1
197	197	designated by law showing that all taxes, assessments, and charges have been paid, shall 2
198	198	be endorsed on the deed and the endorsement shall be sufficient authority for transfer on 3
199	199	the assessment books. 4
200	200
201	201	(c) (1) (i) 1. The requirements for prepayment of personal property 5
202	202	taxes in subsection (b) of this section do not apply to grants of land made: 6
203	203
204	204	[1.] A. By or on behalf of any mortgagee, lien creditor, 7
205	205	trustee of a deed of trust, judgment creditor, trustee in bankruptcy or receiver, and any 8
206	206	other court–appointed officer in an insolvency or liquidation proceeding; or 9
207	207
208	208	[2.] B. By a deed in lieu of foreclosure to any holder of a 10
209	209	mortgage or deed of trust or to the holder’s assignee or designee. 11
210	210
211	211	2. IN BALTIMORE CITY, THE REQUIREMENTS FOR 12
212	212	PREPAYMENT OF REAL PROPERTY TAXES IN SU BSECTION (B) OF THIS SECTION DO 13
213	213	NOT APPLY TO: 14
214	214
215	215	A. GRANTS OF LAND THAT TRANSFE R RESIDENTIAL 15
216	216	REAL PROPERTY FROM T HE ESTATE OF A DECED ENT TO AN HEIR OF TH E DECEDENT, 16
217	217	IF THE HEIR OF THE D ECEDENT ENTERS INTO A PAYMENT PLAN WITH THE 17
218	218	BALTIMORE CITY BUREAU OF REVENUE COLLECTIONS TO PAY AL L PUBLIC TAXES, 18
219	219	ASSESSMENTS , AND CHARGES CURRENTL Y DUE AND OWED ON THAT PROPERTY; OR 19
220	220
221	221	B. THE TRANSFER OF RESID ENTIAL REAL PROPERTY TO 20
222	222	BALTIMORE CITY IN ACCORDANCE WITH § 10–106 OF THE ESTATES AND TRUSTS 21
223	223	ARTICLE. 22
224	224
225	225	(ii) Notwithstanding any other provision of law, and except as 23
226	226	provided in subparagraph (iii) of this paragraph, after the recordation of a deed or other 24
227	227	instrument that effects a grant of land described in subparagraph [(i)] (I)1 of this 25
228	228	paragraph, the land shall be free and clear of, and unencumbered by, any lien or claim of 26
229	229	lien for any unpaid taxes on personal property. 27
230	230
231	231	(iii) Subparagraph (ii) of this paragraph does not apply to: 28
232	232
233	233	1. Any lien for unpaid taxes on personal property that 29
234	234	attached to the land by recording and indexing a notice as provided in § 14–804(b) of the 30
235	235	Tax – Property Article prior to the recording of the mortgage, lien, deed of trust, or other 31
236	236	encumbrance giving rise to the grant of land described in subparagraph [(i)] (I)1 of this 32
237	237	paragraph; or 33
238	238	6 HOUSE BILL 865
239	239
240	240
241	241	2. Unpaid taxes on personal property owed by the transferee 1
242	242	or subsequent owner of the land after a grant of land described in subparagraph [(i)] (I)1 2
243	243	of this paragraph. 3
244	244
245	245	(iv) This paragraph does not affect the rights of the personal property 4
246	246	tax lienholder to make a claim to any surplus proceeds from a judicial sale of land resulting 5
247	247	in a grant of land described in subparagraph [(i)] (I)1 of this paragraph. 6
248	248
249	249	(2) Subsection (b) of this section does not apply in Charles, St. Mary’s, 7
250	250	Dorchester, Harford, Howard, Kent, Prince George’s, Worcester, Carroll, Montgomery, 8
251	251	Frederick and Washington counties to any deed executed as a mere c onduit or for 9
252	252	convenience in holding and passing title, known popularly as a straw deed or, as provided 10
253	253	in § 4–108 of this article, a deed making a direct grant in lieu of a straw deed, or to a deed 11
254	254	which is a supplementary instrument merely confirming, correcting, or modifying a 12
255	255	previously recorded deed, if there is no actual consideration paid or to be paid for the 13
256	256	execution of the supplementary instrument. 14
257	257
258	258	(3) Subsection (b) of this section does not apply in Baltimore City and Anne 15
259	259	Arundel, Baltimore, Carroll, Frederick, St. Mary’s, or Washington counties to any deed 16
260	260	transferring property to the county when the controller or treasurer of the county has 17
261	261	certified that the conveyance does not impair the security for any public taxes, assessments, 18
262	262	and charges due on the remaining property of the grantor. 19
263	263
264	264	(4) (i) Property may be transferred on the assessment books or records 20
265	265	in July, August, or September if instead of paying the taxes required under subsection (b)(1) 21
266	266	of this section on a property transfer by assumption, a lender or the attorney handling the 22
267	267	transfer of title files with the county treasurer, tax collector, or director of finance of the 23
268	268	county in which the property is assessed a statement that certifies that the lender 24
269	269	maintains a real estate tax escrow account. 25
270	270
271	271	(ii) Upon receipt of the statement required in subparagraph (i) of 26
272	272	this paragraph, the county treasurer, tax collector, or director of finance shall endorse on 27
273	273	the deed an appropriate certification and the endorsement shall be sufficient authority for 28
274	274	transfer on the assessment books. 29
275	275
276	276	(5) (I) [At] EXCEPT AS PROVIDED IN SUBPARAGRAPH (II) OF THIS 30
277	277	PARAGRAPH , AT the time of transfer of real property subject to a semiannual payment 31
278	278	schedule for the payment of property taxes, only those semiannual payments that are due 32
279	279	for the current taxable year under § 10–204.3 of the Tax – Property Article must be paid 33
280	280	prior to the transfer of the property. 34
281	281
282	282	(II) IN BALTIMORE CITY, THE SEMIANNUAL PAYME NTS THAT 35
283	283	ARE DUE FOR THE CURR ENT TAXABLE YEAR UND ER § 10–204.3 OF THE TAX – 36
284	284	PROPERTY ARTICLE ARE NOT REQUI RED TO BE PAID BEFOR E THE TRANSFER OF 37
285	285	THE PROPERT Y IF: 38
286	286	HOUSE BILL 865 7
287	287
288	288
289	289	1. A. THE PROPERTY IS RESIDENTIAL REAL 1
290	290	PROPERTY THAT IS BEING TRANSFERRED FROM THE ESTATE OF A DECEDENT TO AN 2
291	291	HEIR OF THE DECEDENT ; AND 3
292	292
293	293	B. THE HEIR OF THE DECED ENT ENTERS INTO A 4
294	294	PAYMENT PLAN WITH TH E BALTIMORE CITY BUREAU OF REVENUE COLLECTIONS 5
295	295	TO PAY ALL P UBLIC TAXES, ASSESSMENTS , AND CHARGES CURRENTL Y DUE AND 6
296	296	OWED ON THE PROPERTY ; OR 7
297	297
298	298	2. THE RESIDENTIAL REAL PRO PERTY IS BEING 8
299	299	TRANSFERRED TO BALTIMORE CITY IN ACCORDANCE WITH § 10–106 OF THE 9
300	300	ESTATES AND TRUSTS ARTICLE. 10
301	301
302	302	SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 11
303	303	October 1, 2023. 12