EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*hb0865*
HOUSE BILL 865
N1, N2, Q1 3lr2081
CF SB 769
By: Baltimore City Delegation
Introduced and read first time: February 9, 2023
Assigned to: Judiciary
A BILL ENTITLED
AN ACT concerning 1
Baltimore City – Residential Real Property – Disclaimed Property and 2
Exemptions From Prepayment 3
FOR the purpose of authorizing Baltimore City to acquire certain disclaimed residential 4
real property of a decedent’s estate under certain circumstances; prohibiting a person 5
from seeking to recover an interest in certain residential real property, or the value 6
of that property, if Baltimore City acquires title to the property in accordance with 7
this Act; exempting, under certain circumstances, grants of certain residential real 8
property from the estate of a decedent to a certain heir of the decedent and transfers 9
of certain residential real property disclaimed by an estate from certain provisions 10
of law requiring the prepayment of certain real property taxes; and generally 11
relating to residential real property in Baltimore City. 12
BY repealing and reenacting, with amendments, 13
Article – Estates and Trusts 14
Section 3–105 and 10–103(b) 15
Annotated Code of Maryland 16
(2022 Replacement Volume and 2022 Supplement) 17
BY adding to 18
Article – Estates and Trusts 19
Section 10–106 20
Annotated Code of Maryland 21
(2022 Replacement Volume and 2022 Supplement) 22
BY repealing and reenacting, without amendments, 23
Article – Real Property 24
Section 3–104(a) and (b) 25
Annotated Code of Maryland 26
(2015 Replacement Volume and 2022 Supplement) 27
2 HOUSE BILL 865
BY repealing and reenacting, with amendments, 1
Article – Real Property 2
Section 3–104(c) 3
Annotated Code of Maryland 4
(2015 Replacement Volume and 2022 Supplement) 5
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 6
That the Laws of Maryland read as follows: 7
Article – Estates and Trusts 8
3–105. 9
(a) (1) (i) The provisions of this subsection are applicable if there is no 10
person entitled to take under §§ 3–102 through 3–104 of this subtitle. 11
(ii) The provisions of this subsection do not apply to [any]: 12
1. ANY portion of a decedent’s estate that is comprised of 13
land that is the subject of an application for a certificate of reservation for public use under 14
Title 13, Subtitle 3 of the Real Property Article; OR 15
2. RESIDENTIAL REAL PROPERTY OF A DECEDENT ’S 16
ESTATE THAT IS DISCLAIMED B Y A PERSON IN ACCORDAN CE WITH TITLE 9, 17
SUBTITLE 2 OF THIS ARTICLE AND TITLE TO WHICH I S ACQUIRED BY BALTIMORE 18
CITY UNDER § 10–106 OF THIS ARTICLE. 19
(2) (i) If an individual was a recipient of long–term care benefits under 20
the Maryland Medical Assistance Program at the time of the individual’s death, the net 21
estate shall be converted to cash and paid to the Maryland Department of Health, and shall 22
be applied for the administration of the program. 23
(ii) If the provisions of subparagraph (i) of this paragraph are not 24
applicable, the net estate shall be converted to cash and paid to the board of education in 25
the county in which the letters were granted, and shall be applied for the use of the public 26
schools in the county. 27
(b) (1) After payment has been made to the Maryland Department of Health 28
or to the board of education, if a claim for refund is filed by a relative within the fifth degree 29
living at the death of the decedent or by the personal representative of the relative, and the 30
claim is allowed, the claimant shall be entitled to a refund, without interest, of the sum 31
paid. 32
(2) A claim for refund under this subsection may not be filed after the later 33
of: 34
HOUSE BILL 865 3
(i) 3 years after the death of the decedent; or 1
(ii) 1 year after the time of distribution of the property. 2
10–103. 3
(b) (1) Except as provided in [§ 10–102] §§ 10–102 AND 10–106 of this 4
subtitle and § 7–308 of the Tax – General Article, the right of a person seeking to recover 5
property improperly distributed, or the value of it, from a person to whom property has 6
been distributed is forever barred at the later of: 7
(i) Three years from the death of the decedent; or 8
(ii) One year from the time of distribution of the property. 9
(2) This subsection does not bar recovery of property or the value of it 10
received as the result of the heir’s or legatee’s participation in a fraudulent distribution. 11
10–106. 12
(A) THIS SECTION SHALL APPLY ONLY IN BALTIMORE CITY. 13
(B) IF RESIDENTIAL REAL PRO PERTY HAS BEEN DISCLAIMED FROM A 14
DECEDENT’S ESTATE AS A DISCLA IMED INTEREST UNDER TITLE 9, SUBTITLE 2 OF 15
THIS ARTICLE, BALTIMORE CITY MAY ACQUIRE TITLE TO THE PROPERT Y IF: 16
(1) THE RESIDENTIAL REAL PRO PERTY IS LOCATED IN BALTIMORE 17
CITY; 18
(2) THE ESTATE WAS CLOSED IN BALTIMORE CITY; AND 19
(3) THE APPOINTMENT OF THE P ERSONAL REPRESENTATIVE HAS 20
TERMINATED UNDER § 10–101 OF THIS SUBTITLE. 21
(C) IF BALTIMORE CITY SEEKS TO ACQUIRE TITLE TO THE RESIDEN TIAL 22
REAL PROPERTY UNDER THIS SECTION, THE ESTATE NEED NOT BE REOPENED AND 23
NOTICE NEED NOT BE PROVIDED TO ANY INTERESTED PA RTIES. 24
(D) THE RIGHT OF A PERSON SEEKING TO RECOVER AN INTEREST IN THE 25
DISCLAIMED RESIDENTIAL REAL PRO PERTY, OR THE VALUE OF THAT PROPERTY , IS 26
FOREVER BARRED UNDER THIS SECTION I F BALTIMORE CITY ACQUIRES TITLE T O 27
THE PROPERTY IN ACCORDANCE WITH T HIS SECTION. 28
Article – Real Property 29
4 HOUSE BILL 865
3–104. 1
(a) (1) The Clerk of the Circuit Court may record an instrument that effects a 2
change of ownership if the instrument is: 3
(i) Endorsed with the certificate of the collector of taxes of the 4
county in which the property is assessed, required under subsection (b) of this section; 5
(ii) 1. Accompanied by a complete intake sheet; or 6
2. Endorsed by the assessment office for the county as 7
provided in subsection (g)(8) of this section; and 8
(iii) Accompanied by a copy of the instrument, and any survey, for 9
submission to the Department of Assessments and Taxation. 10
(2) The Supervisor of Assessments shall transfer ownership of property in 11
the assessment records, effective as of the date of recordation, upon receipt from the Clerk 12
of the Circuit Court of a copy of the instrument, the completed intake sheet, and any survey 13
submitted under paragraph (1) of this subsection. 14
(b) (1) (i) Except as provided in subsection (c) of this section, property may 15
not be transferred on the assessment books or records until: 16
1. All public taxes, assessments, and charges currently due 17
and owed on the property have been paid to the treasurer, tax collector, or director of 18
finance of the county in which the property is assessed; and 19
2. All taxes on personal property in the county due by the 20
transferor have been paid when all land owned by the transferor in the county is being 21
transferred. 22
(ii) The certificate of the collecting agent designated by law, showing 23
that all taxes, assessments, and charges have been paid, shall be endorsed on the deed, and 24
the endorsement shall be sufficient authority for transfer on the assessment books. 25
(2) (i) Except as provided in subsection (c) of this section, in Allegany, 26
Cecil, Charles, Dorchester, Harford, Howard, Kent, Queen Anne’s, Somerset, and St. 27
Mary’s counties no property may be transferred on the assessment books or records until: 28
1. All public taxes, assessments, any charges due a 29
municipal corporation, and charges due on the property have been paid as required by law; 30
and 31
2. All taxes on personal property in the county due by the 32
transferor have been paid when all land owned by the transferor in the county and 33
municipal corporation is being transferred. 34 HOUSE BILL 865 5
(ii) The certificate of the collecting agent and municipal corporation 1
designated by law showing that all taxes, assessments, and charges have been paid, shall 2
be endorsed on the deed and the endorsement shall be sufficient authority for transfer on 3
the assessment books. 4
(c) (1) (i) 1. The requirements for prepayment of personal property 5
taxes in subsection (b) of this section do not apply to grants of land made: 6
[1.] A. By or on behalf of any mortgagee, lien creditor, 7
trustee of a deed of trust, judgment creditor, trustee in bankruptcy or receiver, and any 8
other court–appointed officer in an insolvency or liquidation proceeding; or 9
[2.] B. By a deed in lieu of foreclosure to any holder of a 10
mortgage or deed of trust or to the holder’s assignee or designee. 11
2. IN BALTIMORE CITY, THE REQUIREMENTS FOR 12
PREPAYMENT OF REAL PROPERTY TAXES IN SU BSECTION (B) OF THIS SECTION DO 13
NOT APPLY TO: 14
A. GRANTS OF LAND THAT TRANSFE R RESIDENTIAL 15
REAL PROPERTY FROM T HE ESTATE OF A DECED ENT TO AN HEIR OF TH E DECEDENT, 16
IF THE HEIR OF THE D ECEDENT ENTERS INTO A PAYMENT PLAN WITH THE 17
BALTIMORE CITY BUREAU OF REVENUE COLLECTIONS TO PAY AL L PUBLIC TAXES, 18
ASSESSMENTS , AND CHARGES CURRENTL Y DUE AND OWED ON THAT PROPERTY; OR 19
B. THE TRANSFER OF RESID ENTIAL REAL PROPERTY TO 20
BALTIMORE CITY IN ACCORDANCE WITH § 10–106 OF THE ESTATES AND TRUSTS 21
ARTICLE. 22
(ii) Notwithstanding any other provision of law, and except as 23
provided in subparagraph (iii) of this paragraph, after the recordation of a deed or other 24
instrument that effects a grant of land described in subparagraph [(i)] (I)1 of this 25
paragraph, the land shall be free and clear of, and unencumbered by, any lien or claim of 26
lien for any unpaid taxes on personal property. 27
(iii) Subparagraph (ii) of this paragraph does not apply to: 28
1. Any lien for unpaid taxes on personal property that 29
attached to the land by recording and indexing a notice as provided in § 14–804(b) of the 30
Tax – Property Article prior to the recording of the mortgage, lien, deed of trust, or other 31
encumbrance giving rise to the grant of land described in subparagraph [(i)] (I)1 of this 32
paragraph; or 33
6 HOUSE BILL 865
2. Unpaid taxes on personal property owed by the transferee 1
or subsequent owner of the land after a grant of land described in subparagraph [(i)] (I)1 2
of this paragraph. 3
(iv) This paragraph does not affect the rights of the personal property 4
tax lienholder to make a claim to any surplus proceeds from a judicial sale of land resulting 5
in a grant of land described in subparagraph [(i)] (I)1 of this paragraph. 6
(2) Subsection (b) of this section does not apply in Charles, St. Mary’s, 7
Dorchester, Harford, Howard, Kent, Prince George’s, Worcester, Carroll, Montgomery, 8
Frederick and Washington counties to any deed executed as a mere c onduit or for 9
convenience in holding and passing title, known popularly as a straw deed or, as provided 10
in § 4–108 of this article, a deed making a direct grant in lieu of a straw deed, or to a deed 11
which is a supplementary instrument merely confirming, correcting, or modifying a 12
previously recorded deed, if there is no actual consideration paid or to be paid for the 13
execution of the supplementary instrument. 14
(3) Subsection (b) of this section does not apply in Baltimore City and Anne 15
Arundel, Baltimore, Carroll, Frederick, St. Mary’s, or Washington counties to any deed 16
transferring property to the county when the controller or treasurer of the county has 17
certified that the conveyance does not impair the security for any public taxes, assessments, 18
and charges due on the remaining property of the grantor. 19
(4) (i) Property may be transferred on the assessment books or records 20
in July, August, or September if instead of paying the taxes required under subsection (b)(1) 21
of this section on a property transfer by assumption, a lender or the attorney handling the 22
transfer of title files with the county treasurer, tax collector, or director of finance of the 23
county in which the property is assessed a statement that certifies that the lender 24
maintains a real estate tax escrow account. 25
(ii) Upon receipt of the statement required in subparagraph (i) of 26
this paragraph, the county treasurer, tax collector, or director of finance shall endorse on 27
the deed an appropriate certification and the endorsement shall be sufficient authority for 28
transfer on the assessment books. 29
(5) (I) [At] EXCEPT AS PROVIDED IN SUBPARAGRAPH (II) OF THIS 30
PARAGRAPH , AT the time of transfer of real property subject to a semiannual payment 31
schedule for the payment of property taxes, only those semiannual payments that are due 32
for the current taxable year under § 10–204.3 of the Tax – Property Article must be paid 33
prior to the transfer of the property. 34
(II) IN BALTIMORE CITY, THE SEMIANNUAL PAYME NTS THAT 35
ARE DUE FOR THE CURR ENT TAXABLE YEAR UND ER § 10–204.3 OF THE TAX – 36
PROPERTY ARTICLE ARE NOT REQUI RED TO BE PAID BEFOR E THE TRANSFER OF 37
THE PROPERT Y IF: 38
HOUSE BILL 865 7
1. A. THE PROPERTY IS RESIDENTIAL REAL 1
PROPERTY THAT IS BEING TRANSFERRED FROM THE ESTATE OF A DECEDENT TO AN 2
HEIR OF THE DECEDENT ; AND 3
B. THE HEIR OF THE DECED ENT ENTERS INTO A 4
PAYMENT PLAN WITH TH E BALTIMORE CITY BUREAU OF REVENUE COLLECTIONS 5
TO PAY ALL P UBLIC TAXES, ASSESSMENTS , AND CHARGES CURRENTL Y DUE AND 6
OWED ON THE PROPERTY ; OR 7
2. THE RESIDENTIAL REAL PRO PERTY IS BEING 8
TRANSFERRED TO BALTIMORE CITY IN ACCORDANCE WITH § 10–106 OF THE 9
ESTATES AND TRUSTS ARTICLE. 10
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 11
October 1, 2023. 12