MD
Maryland Senate Bill SB194

Maryland 2023 Regular Session

Maryland Senate Bill SB194 Compare Versions

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1- WES MOORE, Governor Ch. 185
21
3-– 1 –
4-Chapter 185
5-(Senate Bill 194)
62
7-AN ACT concerning
3+EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
4+ [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.
8+ Italics indicate opposite chamber/conference committee amendments.
9+ *sb0194*
810
9-Ground Leases – Notices and Billing – Forms and Requirements
11+SENATE BILL 194
12+N1 (3lr1197)
13+ENROLLED BILL
14+— Judicial Proceedings/Environment and Transportation —
15+Introduced by Senators Sydnor and Hayes
1016
11-FOR the purpose of prohibiting a leasehold tenant of an unregistered ground lease from
12-being required to hold more than a certain amount of ground rent in escrow;
13-requiring a ground lease holder to mail certain notices and bills to a leasehold tenant
14-in a certain manner under certain circumstances and prohibiting the ground lease
15-holder from requiring the leasehold tenant to reimburse the ground lease holder for
16-the mailing expenses; requiring the State Department of Assessments and Taxation
17-to develop and make available on its website certain form notices and bills; requiring
18-a ground lease transferee to send notice of a ground lease transfer to the State
19-Department of Assessments and Taxation within a certain period of time; and
20-generally relating to ground leases.
17+Read and Examined by Proofreaders:
2118
22-BY renumbering
23- Article – Real Property
24-Section 8–801(b) through (f)
25-to be Section 8–801(c) through (g), respectively
26- Annotated Code of Maryland
27- (2015 Replacement Volume and 2022 Supplement)
19+_______________________________________________
20+Proofreader.
21+_______________________________________________
22+Proofreader.
2823
29-BY repealing and reenacting, with amendments,
30- Article – Real Property
31-Section 8–707, 8–805(a) and (d)(1)(iii) and (v) and (3)(ii), 8–807(a), (c), and (d), 8–809,
32-and 8–810
33- Annotated Code of Maryland
34- (2015 Replacement Volume and 2022 Supplement)
24+Sealed with the Great Seal and presented to the Governor, for his approval this
3525
36-BY repealing and reenacting, without amendments,
37- Article – Real Property
38-Section 8–801(a)
39- Annotated Code of Maryland
40- (2015 Replacement Volume and 2022 Supplement)
26+_______ day of _______________ at __ ______________________ o’clock, ________M.
4127
42-BY adding to
43- Article – Real Property
44-Section 8–801(b) and 8–801.1
45- Annotated Code of Maryland
46- (2015 Replacement Volume and 2022 Supplement)
47- Ch. 185 2023 LAWS OF MARYLAND
28+______________________________________________
29+President.
4830
49-– 2 –
50- SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
51-That Section(s) 8–801(b) through (f) of Article – Real Property of the Annotated Code of
52-Maryland be renumbered to be Section(s) 8–801(c) through (g), respectively.
31+CHAPTER ______
5332
54- SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland read
55-as follows:
33+AN ACT concerning 1
5634
57-Article – Real Property
35+Ground Leases – Notices and Billing – Forms and Requirements 2
5836
59-8–707.
37+FOR the purpose of prohibiting a leasehold tenant of an unregistered ground lease from 3
38+being required to hold more than a certain amount of ground rent in escrow; 4
39+requiring a ground lease holder to mail certain notices and bills to a leasehold tenant 5
40+in a certain manner under certain circumstances and prohibiting the ground lease 6
41+holder from requiring the leasehold tenant to reimburse the ground lease holder for 7
42+the mailing expenses; requiring the State Department of Assessments and Taxation 8
43+to develop and make available on its website certain form notices and bills; requiring 9
44+a ground lease transferee to send notice of a ground lease transfer to the State 10
45+Department of Assessments and Taxation within a certain period of time; and 11
46+generally relating to ground leases. 12
6047
61- If a ground lease is not registered in accordance with this [subtitle, the] SUBTITLE:
48+BY renumbering 13
49+ Article – Real Property 14 2 SENATE BILL 194
6250
63- (1) THE ground lease holder may not:
6451
65- [(1)] (I) Collect any ground rent payments due under the ground lease;
52+Section 8–801(b) through (f) 1
53+to be Section 8–801(c) through (g), respectively 2
54+ Annotated Code of Maryland 3
55+ (2015 Replacement Volume and 2022 Supplement) 4
6656
67- [(2)] (II) Bring a civil action against the leasehold tenant to enforce any
68-rights the ground lease holder may have under the ground lease; or
57+BY repealing and reenacting, with amendments, 5
58+ Article – Real Property 6
59+Section 8–707, 8–805(a) and (d)(1)(iii) and (v) and (3)(ii), 8–807(a), (c), and (d), 8–809, 7
60+and 8–810 8
61+ Annotated Code of Maryland 9
62+ (2015 Replacement Volume and 2022 Supplement) 10
6963
70- [(3)] (III) Bring an action against the leasehold tenant under Subtitle 8 of
71-this title; AND
64+BY repealing and reenacting, without amendments, 11
65+ Article – Real Property 12
66+Section 8–801(a) 13
67+ Annotated Code of Maryland 14
68+ (2015 Replacement Volume and 2022 Supplement) 15
7269
73- (2) THE LEASEHOLD TENANT OF THE UNREGISTERED GROUND LEASE
74-MAY NOT BE REQUIRED TO HOLD MORE THAN 3 YEARS OF GROUND RENT IN ESCROW
75-FOR THE UNREGISTERED GROUND LEASE .
70+BY adding to 16
71+ Article – Real Property 17
72+Section 8–801(b) and 8–801.1 18
73+ Annotated Code of Maryland 19
74+ (2015 Replacement Volume and 2022 Supplement) 20
7675
77-8–801.
76+ SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 21
77+That Section(s) 8–801(b) through (f) of Article – Real Property of the Annotated Code of 22
78+Maryland be renumbered to be Section(s) 8–801(c) through (g), respectively. 23
7879
79- (a) In this subtitle the following words have the meanings indicated.
80+ SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 24
81+as follows: 25
8082
81- (B) “DEPARTMENT ” MEANS THE STATE DEPARTMENT OF ASSESSMENTS
82-AND TAXATION.
83+Article – Real Property 26
8384
84-8–801.1.
85+8–707. 27
8586
86- (A) THE GENERAL ASSEMBLY DECLARES THA T IT IS IN THE PUBLI C
87-INTEREST FOR GROUND RENTS TO BE REDEEMED .
87+ If a ground lease is not registered in accordance with this [subtitle, the] SUBTITLE: 28
8888
89- (B) IT IS THE INTENT OF THE GENERAL ASSEMBLY THAT THE DEPARTMENT
90-USE ITS GROUND RENT REDEMPTION PROGRAM T O ASSIST IN THE REDE MPTION OF
91-GROUND RENTS .
89+ (1) THE ground lease holder may not: 29
9290
93-8–805.
94- WES MOORE, Governor Ch. 185
91+ [(1)] (I) Collect any ground rent payments due under the ground lease; 30
9592
96-– 3 –
97- (a) (1) In this section the following words have the meanings indicated.
93+ [(2)] (II) Bring a civil action against the leasehold tenant to enforce any 31
94+rights the ground lease holder may have under the ground lease; or 32
9895
99- (2) [“Department” means the State Department of Assessments and
100-Taxation.
96+ [(3)] (III) Bring an action against the leasehold tenant under Subtitle 8 of 33
97+this title; AND 34 SENATE BILL 194 3
10198
102- (3)] “Irredeemable ground rent” means a ground rent created under a
103-ground lease executed before April 9, 1884, that does not contain a provision allowing the
104-leasehold tenant to redeem the ground rent.
10599
106- [(4)] (3) “Redeemable ground rent” means a ground rent that may be
107-redeemed in accordance with this section or redeemed or extinguished in accordance with
108-§ 8–804(f) of this subtitle.
109100
110- (d) (1) To be effective and to be entitled to be recorded, the notice shall be
111-executed by the ground lease holder, acknowledged before a notary public, and contain
112-substantially the following information:
101+ (2) THE LEASEHOLD TENANT OF THE UNREGISTERED GROUND LEASE 1
102+MAY NOT BE REQUIRED TO HOLD MORE THAN 3 YEARS OF GROUND RENT IN ESCROW 2
103+FOR THE UNREGISTERED GROUND LEASE . 3
113104
114- (iii) The name of every leasehold tenant as of the time the notice is
115-filed according to the land records or the records of the [State] Department [of Assessments
116-and Taxation];
105+8–801. 4
117106
118- (v) The recording reference of every leasehold tenant’s leasehold
119-deed, as of the time the notice is filed, according to the land records or the records of the
120-[State] Department [of Assessments and Taxation];
107+ (a) In this subtitle the following words have the meanings indicated. 5
121108
122- (3) The notice shall be indexed as “Notice of Intention to Preserve
123-Irredeemability”:
109+ (B) “DEPARTMENT ” MEANS THE STATE DEPARTMENT OF ASSESSMENTS 6
110+AND TAXATION. 7
124111
125- (ii) In the grantor indices of deeds under the name of every leasehold
126-tenant as of the time the notice is filed according to the land records or the records of the
127-[State] Department [of Assessments and Taxation]; and
112+8–801.1. 8
128113
129-8–807.
114+ (A) THE GENERAL ASSEMBLY DECLARES THA T IT IS IN THE PUBLI C 9
115+INTEREST FOR GROUND RENTS TO BE REDEEMED . 10
130116
131- (a) For property subject to a ground lease in effect on or after July 1, 2007, a
132-ground lease holder may bring an action for possession for nonpayment of ground rent only:
117+ (B) IT IS THE INTENT OF THE GENERAL ASSEMBLY THAT T HE DEPARTMENT 11
118+USE ITS GROUND RENT REDEMPTION PROGRAM T O ASSIST IN THE REDE MPTION OF 12
119+GROUND RENTS . 13
133120
134- (1) If the ground lease holder has the lawful right to claim possession for
135-nonpayment of ground rent;
121+8–805. 14
136122
137- (2) If the ground lease is registered with the [State] Department [of
138-Assessments and Taxation] under Subtitle 7 of this title;
123+ (a) (1) In this section the following words have the meanings indicated. 15
139124
140- (3) If the payment of ground rent is at least 6 months in arrears; and
125+ (2) [“Department” means the State Department of Assessments and 16
126+Taxation. 17
141127
142- (4) As provided under this section. Ch. 185 2023 LAWS OF MARYLAND
128+ (3)] “Irredeemable ground rent” means a ground rent created under a 18
129+ground lease executed before April 9, 1884, that does not contain a provision allowing the 19
130+leasehold tenant to redeem the ground rent. 20
143131
144-– 4 –
132+ [(4)] (3) “Redeemable ground rent” means a ground rent that may be 21
133+redeemed in accordance with this section or redeemed or extinguished in accordance with 22
134+§ 8–804(f) of this subtitle. 23
145135
146- (c) (1) (I) No less than 60 days before filing an action for possession, the
147-ground lease holder shall send a notice, in the form required under paragraph (2) of this
148-subsection, to the leasehold tenant’s last known address AND TO THE PREMISES ADDRESS
149-as shown in the records of the [State] Department [of Assessments and Taxation, or other
150-place of business or residence if known,] by[:
136+ (d) (1) To be effective and to be entitled to be recorded, the notice shall be 24
137+executed by the ground lease holder, acknowledged before a notary public, and contain 25
138+substantially the following information: 26
151139
152- (i) First–class mail;] FIRST–CLASS MAIL and
140+ (iii) The name of every leasehold tenant as of the time the notice is 27
141+filed according to the land records or the records of the [State] Department [of Assessments 28
142+and Taxation]; 29
143+ 4 SENATE BILL 194
153144
154- [(ii) Certified] CERTIFIED mail, return receipt requested.
155145
156- (II) IF A LEASEHOLD TENANT ’S LAST KNOWN MAILING ADDRESS
157-AND THE PREMISES ADD RESS LISTED IN THE R ECORDS OF THE DEPARTMENT ARE
158-DIFFERENT, THE GROUND LEASE HOL DER SHALL MAIL ONE C OPY OF THE NOTICE BY
159-FIRST–CLASS MAIL AND ONE C OPY OF THE NOTICE BY CERTIFIED MAIL , RETURN
160-RECEIPT REQUESTED , TO EACH ADDRESS , RESPECTIVELY .
146+ (v) The recording reference of every leasehold tenant’s leasehold 1
147+deed, as of the time the notice is filed, according to the land records or the records of the 2
148+[State] Department [of Assessments and Taxation]; 3
161149
162- (III) A GROUND LEASE HOLDER MAY NOT REQUIRE A LE ASEHOLD
163-TENANT TO REIMBURSE THE GROUND LEASE HOL DER FOR COSTS INCURR ED IN
164-PROVIDING NO TICE REQUIRED UNDER THIS SUBSECTION .
150+ (3) The notice shall be indexed as “Notice of Intention to Preserve 4
151+Irredeemability”: 5
165152
166- (2) The DEPARTMENT SHALL DEVE LOP AND MAKE AVAILAB LE ON ITS
167-WEBSITE A FORM NOTICE FOR US E BY A GROUND LEASE HOLDER THE FORM A
168-GROUND LEASE HOLDER MUST USE TO PROVIDE TO A LEAS EHOLD TENANT THE notice
169-required under paragraph (1) of this subsection [shall be in substantially the same form as
170-the notice contained on the Web site of the State Department of Assessments and
171-Taxation].
153+ (ii) In the grantor indices of deeds under the name of every leasehold 6
154+tenant as of the time the notice is filed according to the land records or the records of the 7
155+[State] Department [of Assessments and Taxation]; and 8
172156
173- (3) If authorized under the ground lease, a ground lease holder may be
174-reimbursed for reasonable late fees, interest, collection costs, and expenses not exceeding
175-$100, provided the outstanding amount due is paid after the notice sent under paragraph
176-(1) of this subsection and before a notice is sent under subsection (d) of this section.
157+8–807. 9
177158
178- (d) (1) (I) After notice has been sent under subsection (c) of this section and
179-no [less] FEWER than 30 days before filing an action for possession, the ground lease holder
180-shall send a notice, in the form required under paragraph (2) of this subsection, to the
181-leasehold tenant’s last known address AND TO THE PREMISES ADDRESS as shown in the
182-records of the [State] Department [of Assessments and Taxation, or other place of business
183-or residence if known,] by[:
159+ (a) For property subject to a ground lease in effect on or after July 1, 2007, a 10
160+ground lease holder may bring an action for possession for nonpayment of ground rent only: 11
184161
185- (i) First–class mail;] FIRST–CLASS MAIL and
162+ (1) If the ground lease holder has the lawful right to claim possession for 12
163+nonpayment of ground rent; 13
186164
187- [(ii) Certified] CERTIFIED mail, return receipt requested.
188- WES MOORE, Governor Ch. 185
165+ (2) If the ground lease is registered with the [State] Department [of 14
166+Assessments and Taxation] under Subtitle 7 of this title; 15
189167
190-– 5 –
191- (II) IF A LEASEHOLD TENANT ’S LAST KNOWN MAILING ADDRESS
192-AND THE PREMISES ADD RESS LISTED IN THE R ECORDS OF THE DEPARTMENT ARE
193-DIFFERENT, THE GROUND LEASE HOL DER SHALL MAIL ONE C OPY OF THE NOTICE BY
194-FIRST–CLASS MAIL AND ONE C OPY OF THE NOTICE BY CERTIFIED MAIL , RETURN
195-RECEIPT REQUESTED , TO EACH ADDRESS , RESPECTIVELY .
168+ (3) If the payment of ground rent is at least 6 months in arrears; and 16
196169
197- (III) A GROUND LEASE HOLDER MAY NOT REQUIRE A LE ASEHOLD
198-TENANT TO REIMBURSE THE GROUND LEASE HOL DER FOR COSTS INCURR ED IN
199-PROVIDING NOTICE REQ UIRED UNDER THIS SUB SECTION.
170+ (4) As provided under this section. 17
200171
201- (2) (I) The DEPARTMEN T SHALL DEVELOP AND MAKE AVAILABLE
202-ON ITS WEBSITE A FORM NOTICE FOR US E BY A GROUND LEASE HOLDER THE FORM
203-A GROUND LEASE HOLDE R MUST USE TO PROVIDE TO A LEAS EHOLD TENANT THE
204-notice required under paragraph (1) of this subsection.
172+ (c) (1) (I) No less than 60 days before filing an action for possession, the 18
173+ground lease holder shall send a notice, in the form required under paragraph (2) of this 19
174+subsection, to the leasehold tenant’s last known address AND TO THE PREMISES ADDRESS 20
175+as shown in the records of the [State] Department [of Assessments and Taxation, or other 21
176+place of business or residence if known,] by[: 22
205177
206- (II) THE FORM shall be in 14 point bold font and [include] REQUIRE
207-THE FOLLOWING :
178+ (i) First–class mail;] FIRST–CLASS MAIL and 23
208179
209- [(i)] 1. An itemized bill for the payment due;
180+ [(ii) Certified] CERTIFIED mail, return receipt requested. 24
210181
211- [(ii)] 2. The amount necessary to cure the default, including late
212-fees, interest, collection costs, and expenses authorized under paragraph (3) of this
213-subsection;
182+ (II) IF A LEASEHOLD TENANT ’S LAST KNOWN MAILING ADDRESS 25
183+AND THE PREMISES ADD RESS LISTED IN THE R ECORDS OF THE DEPARTMENT ARE 26
184+DIFFERENT, THE GROUND LEASE HOL DER SHALL MAIL ONE C OPY OF THE NOTICE BY 27
185+FIRST–CLASS MAIL AND ONE C OPY OF THE NOTICE BY CERTIFIED MAIL , RETURN 28
186+RECEIPT REQUESTED , TO EACH ADDRESS , RESPECTIVELY . 29
214187
215- [(iii)] 3. The name and address of the person to whom to send the
216-payment due;
188+ (III) A GROUND LEASE HOLDER MAY NOT REQUIRE A LE ASEHOLD 30
189+TENANT TO REIMBURSE THE GROUND LEASE HOL DER FOR COSTS INCURR ED IN 31
190+PROVIDING NO TICE REQUIRED UNDER THIS SUBSECTION . 32 SENATE BILL 194 5
217191
218- [(iv)] 4. The name and contact information of the person to contact
219-for questions about the notice; and
220192
221- [(v)] 5. A statement that unless the default is cured in 30 days:
222193
223- [1.] A. The ground lease holder intends to file an action for
224-possession; and
194+ (2) The DEPARTMENT SHALL DEVE LOP AND MAKE AVAILAB LE ON ITS 1
195+WEBSITE A FORM NOTICE FOR US E BY A GROUND LEASE HOLDER THE FORM A 2
196+GROUND LEASE HOLDER MUST USE TO PROVIDE TO A LEAS EHOLD TENANT THE notice 3
197+required under paragraph (1) of this subsection [shall be in substantially the same form as 4
198+the notice contained on the Web site of the State Department of Assessments and 5
199+Taxation]. 6
225200
226- [2.] B. The leasehold tenant may be liable for reimbursing
227-the ground lease holder for expenses and costs incurred in connection with the collection of
228-past due ground rent and the filing of the action for possession.
201+ (3) If authorized under the ground lease, a ground lease holder may be 7
202+reimbursed for reasonable late fees, interest, collection costs, and expenses not exceeding 8
203+$100, provided the outstanding amount due is paid after the notice sent under paragraph 9
204+(1) of this subsection and before a notice is sent under subsection (d) of this section. 10
229205
230- (3) If authorized under the ground lease, a ground lease holder may be
231-reimbursed for reasonable late fees, interest, collection costs, and expenses not exceeding
232-$650, including:
206+ (d) (1) (I) After notice has been sent under subsection (c) of this section and 11
207+no [less] FEWER than 30 days before filing an action for possession, the ground lease holder 12
208+shall send a notice, in the form required under paragraph (2) of this subsection, to the 13
209+leasehold tenant’s last known address AND TO THE PREMISES ADDRESS as shown in the 14
210+records of the [State] Department [of Assessments and Taxation, or other place of business 15
211+or residence if known,] by[: 16
233212
234- (i) Title abstract and examination fees;
235- Ch. 185 2023 LAWS OF MARYLAND
213+ (i) First–class mail;] FIRST–CLASS MAIL and 17
236214
237-– 6 –
238- (ii) Judgment report costs;
215+ [(ii) Certified] CERTIFIED mail, return receipt requested. 18
239216
240- (iii) Photocopying and postage fees; and
217+ (II) IF A LEASEHOLD TENANT ’S LAST KNOWN MAILING ADDRESS 19
218+AND THE PREMISES ADD RESS LISTED IN THE R ECORDS OF THE DEPARTMENT ARE 20
219+DIFFERENT, THE GROUND LEASE HOL DER SHALL MAIL ONE C OPY OF THE NOTICE BY 21
220+FIRST–CLASS MAIL AND ONE C OPY OF THE NOTICE BY CERTIFIED MAIL , RETURN 22
221+RECEIPT REQUESTED , TO EACH ADDRESS , RESPECTIVELY . 23
241222
242- (iv) Attorney’s fees.
223+ (III) A GROUND LEASE HOLDER MAY NOT REQUIRE A LE ASEHOLD 24
224+TENANT TO REIMBURSE THE GROUND LEASE HOL DER FOR COSTS INCURR ED IN 25
225+PROVIDING NOTICE REQ UIRED UNDER THIS SUB SECTION. 26
243226
244-8–809.
227+ (2) (I) The DEPARTMEN T SHALL DEVELOP AND MAKE AVAILABLE 27
228+ON ITS WEBSITE A FORM NOTICE FOR US E BY A GROUND LEASE HOLDER THE FORM 28
229+A GROUND LEASE HOLDE R MUST USE TO PROVIDE TO A LEAS EHOLD TENANT THE 29
230+notice required under paragraph (1) of this subsection. 30
245231
246- (a) (1) A ground lease holder may not collect a yearly or half –yearly
247-installment payment of a ground rent due under the ground lease unless:
232+ (II) THE FORM shall be in 14 point bold font and [include] REQUIRE 31
233+THE FOLLOWING : 32
248234
249- [(1)] (I) The ground lease is registered with the [State] Department [of
250-Assessments and Taxation] under Subtitle 7 of this title; and
235+ [(i)] 1. An itemized bill for the payment due; 33
236+ 6 SENATE BILL 194
251237
252- [(2)] (II) At least 60 days before the payment is due, the ground lease
253-holder mails a bill, IN THE FORM REQUIRED UNDER SUBSECTION (B) OF THIS
254-SECTION, to the last known address of the leasehold tenant and to the PREMISES address
255-of the property subject to the ground lease LISTED IN THE RECORD S OF THE
256-DEPARTMENT .
257238
258- (2) IF A LEASEHOLD TENANT ’S LAST KNOWN MAILING ADDRESS AND
259-THE PREMISES ADDRESS LISTED IN THE RECORD S OF THE DEPARTMENT ARE
260-IDENTICAL, THE GROUND LEASE HOL DER SHALL MAIL ONE C OPY OF THE BILL TO
261-THE ADDRESS BY FI RST–CLASS MAIL AND ONE C OPY OF THE BILL TO T HE ADDRESS
262-BY CERTIFIED MAIL , RETURN RECEIPT REQUE STED.
239+ [(ii)] 2. The amount necessary to cure the default, including late 1
240+fees, interest, collection costs, and expenses authorized under paragraph (3) of this 2
241+subsection; 3
263242
264- (3) IF A LEASEHOLD TENANT ’S LAST KNOWN MAILING ADDRESS AND
265-PREMISES ADDRESS LIS TED IN THE RECORDS O F THE DEPARTMENT ARE
266-DIFFERENT, THE GROUND LEASE HOL DER SHALL MAIL ONE COP Y OF THE BILL BY
267-FIRST–CLASS MAIL AND ONE C OPY OF THE BILL BY C ERTIFIED MAIL , RETURN
268-RECEIPT REQUESTED , TO EACH ADDRESS , RESPECTIVELY .
243+ [(iii)] 3. The name and address of the person to whom to send the 4
244+payment due; 5
269245
270- (4) A GROUND LEASE HOLDER MAY NOT REQUIRE THE LEASEHOLD
271-TENANT TO REIMBURSE THE GROUND LEASE HOL DER FOR COSTS INCURRED TO
272-PROVIDE A BILL UNDER THIS SUBSECTION .
246+ [(iv)] 4. The name and contact information of the person to contact 6
247+for questions about the notice; and 7
273248
274- (b) (1) THE DEPARTMENT SHALL DEVE LOP AND MAKE AVAILAB LE ON ITS
275-WEBSITE A FORM BILL FOR USE BY A GROUND LEASE HO LDER THE FORM A GROUND
276-LEASE HOLDER MUST US E TO PROVIDE TO A LE ASEHOLD TENANT THE BILL
277-REQUIRED UNDER SUBSE CTION (A)(1)(II) OF THIS SECTION.
249+ [(v)] 5. A statement that unless the default is cured in 30 days: 8
278250
279- (2) The FORM bill MADE AVAILABLE ON TH E DEPARTMENT ’S WEBSITE
280-shall include a notice in boldface type, at least as large as 14 point, in substantially the
281-following form: WES MOORE, Governor Ch. 185
251+ [1.] A. The ground lease holder intends to file an action for 9
252+possession; and 10
282253
283-– 7 –
254+ [2.] B. The leasehold tenant may be liable for reimbursing 11
255+the ground lease holder for expenses and costs incurred in connection with the collection of 12
256+past due ground rent and the filing of the action for possession. 13
284257
285-“NOTICE REQUIRED BY MARYLAND LAW
286-REGARDING YOUR GROUND RENT
258+ (3) If authorized under the ground lease, a ground lease holder may be 14
259+reimbursed for reasonable late fees, interest, collection costs, and expenses not exceeding 15
260+$650, including: 16
287261
288-This property (address) is subject to a ground lease. The annual payment on the ground
289-lease (“ground rent”) is $(dollar amount), payable in yearly or half–yearly installments on
290-(date or dates).
262+ (i) Title abstract and examination fees; 17
291263
292-The next ground rent payment is due (day, month, year) in the amount of $(dollar amount).
264+ (ii) Judgment report costs; 18
293265
294-The payment of the ground rent should be sent to:
295-(name of ground lease holder)
296-(address)
297-(phone number)
266+ (iii) Photocopying and postage fees; and 19
298267
299-NOTE REGARDING YOUR RIGHTS AND RESPONSIBILITIES UNDER MARYLAND
300-LAW:
268+ (iv) Attorney’s fees. 20
301269
302-The ground lease holder is required to register the ground lease with the State Department
303-of Assessments and Taxation and is prohibited from collecting ground rent payments unless
304-the ground lease is registered. If the ground lease is registered, as the owner of this
305-property, you are obligated to pay the ground rent to the ground lease holder. To determine
306-whether the ground lease is registered, you may check the [Web site] WEBSITE of the State
307-Department of Assessments and Taxation. It is also your responsibility to notify the ground
308-lease holder if you change your address or transfer ownership of the property.
270+8–809. 21
309271
310-If you fail to pay the ground rent on time, you are still responsible for paying the ground
311-rent. In addition, if the ground lease holder files an action in court to collect the past due
312-ground rent, you may be required to pay the ground lease holder for fees and costs
313-associated with the collection of the past due ground rent. In addition, the ground lease
314-holder may also file an action in court to take possession of the property, which may result
315-in your being responsible for additional fees and costs and ultimately in your loss of the
316-property. Please note that under Maryland law, a ground lease holder may demand not
317-more than 3 years of past due ground rent, and there are limits on how much a ground
318-lease holder may be reimbursed for fees and costs. If you fail to pay the ground rent on
319-time, you should contact a lawyer for advice.
272+ (a) (1) A ground lease holder may not collect a yearly or half –yearly 22
273+installment payment of a ground rent due under the ground lease unless: 23
320274
321-As the owner of this property, you are entitled to redeem, or purchase, the ground lease
322-from the ground lease holder and obtain absolute ownership of the property. Unless you
323-and the ground lease holder agree to a lesser amount, the amount to redeem your ground
324-lease is _______. If you wish to redeem the ground lease, contact the ground lease holder. If
325-the identity of the ground lease holder is unknown, the State Department of Assessments
326-and Taxation provides a process to redeem the ground lease that may result in your
327-obtaining absolute ownership of the property. If you would like to obtain absolute
328-ownership of this property, you should contact a lawyer for advice.”.
329- Ch. 185 2023 LAWS OF MARYLAND
275+ [(1)] (I) The ground lease is registered with the [State] Department [of 24
276+Assessments and Taxation] under Subtitle 7 of this title; and 25
330277
331-– 8 –
332-8–810.
278+ [(2)] (II) At least 60 days before the payment is due, the ground lease 26
279+holder mails a bill, IN THE FORM REQUIRED UNDER SUBSECTION (B) OF THIS 27
280+SECTION, to the last known address of the leasehold tenant and to the PREMISES address 28
281+of the property subject to the ground lease LISTED IN THE RECORD S OF THE 29
282+DEPARTMENT . 30
283+ SENATE BILL 194 7
333284
334- (a) Within 30 days after any transfer of a ground lease, the transferee shall notify
335-the leasehold tenant AND THE DEPARTMENT of the transfer.
336285
337- (b) (1) The notification shall include the name and address of the new ground
338-lease holder and the date of the transfer.
286+ (2) IF A LEASEHOLD TENANT ’S LAST KNOWN MAILING ADDRESS AND 1
287+THE PREMISES ADDRESS LISTED IN THE RECORD S OF THE DEPARTMENT ARE 2
288+IDENTICAL, THE GROUND LEASE HOL DER SHALL MAIL ONE C OPY OF THE BILL TO 3
289+THE ADDRESS BY FIRST –CLASS MAIL AND ONE C OPY OF THE BILL TO T HE ADDRESS 4
290+BY CERTIFIED MAIL , RETURN RECEIPT REQUE STED. 5
339291
340- (2) If the property is subject to a redeemable ground rent, the notification
341-shall also include the following notice:
292+ (3) IF A LEASEHOLD TENANT ’S LAST KNOWN MAILING ADDRESS AND 6
293+PREMISES ADDRESS LIS TED IN THE RECORDS O F THE DEPARTMENT ARE 7
294+DIFFERENT, THE GROUND LEASE HOL DER SHALL MAIL ONE C OPY OF THE BILL BY 8
295+FIRST–CLASS MAIL AND ONE COPY OF THE BILL BY CERTIFIE D MAIL, RETURN 9
296+RECEIPT REQUESTED , TO EACH ADDRESS , RESPECTIVELY . 10
342297
343- “As the owner of the property subject to this ground lease, you are entitled to redeem,
344-or purchase, the ground lease from the ground lease holder and obtain absolute ownership
345-of the property. The redemption amount is fixed by law but may also be negotiated with
346-the ground lease holder for a different amount. For information on redeeming the ground
347-lease, contact the ground lease holder.”
298+ (4) A GROUND LEASE HOLDER MAY NOT REQUIRE THE LEASEHOLD 11
299+TENANT TO REIMBURSE THE GROUND LEASE HOL DER FOR COSTS INCURR ED TO 12
300+PROVIDE A BILL UNDER THIS SUBSECTION. 13
348301
349- (c) (1) A ground lease holder shall send notice under this section to the last
350-known address of the leasehold tenant AND THE PREMISES ADD RESS LISTED IN THE
351-RECORDS OF THE DEPARTMENT BY FIRST –CLASS MAIL AND CERTI FIED MAIL,
352-RETURN RECEIPT REQUE STED.
302+ (b) (1) THE DEPARTMENT SHALL DEVE LOP AND MAKE AVAILAB LE ON ITS 14
303+WEBSITE A FORM BILL FOR USE BY A GROUND LEASE HO LDER THE FORM A GROUND 15
304+LEASE HOLDER MUST US E TO PROVIDE TO A LE ASEHOLD TENANT THE B ILL 16
305+REQUIRED UNDER SUBSE CTION (A)(1)(II) OF THIS SECTION. 17
353306
354- (2) IF A LEASEHOLD TENANT ’S LAST KNOWN MAILING ADDRESS AND
355-PREMISES ADDRESS LIS TED IN THE RECORDS O F THE DEPARTMENT ARE
356-DIFFERENT, THE GROUND LEASE HOL DER SHALL MAIL ONE C OPY OF THE NOTICE BY
357-FIRST–CLASS MAIL AND ONE C OPY OF THE NOTICE BY CERTIFIED MAIL , RETURN
358-RECEIPT REQUESTED , TO EACH ADDRESS , RESPECTIVELY .
307+ (2) The FORM bill MADE AVAILABLE ON TH E DEPARTMENT ’S WEBSITE 18
308+shall include a notice in boldface type, at least as large as 14 point, in substantially the 19
309+following form: 20
359310
360- (3) A GROUND LEASE HOLDER MAY NOT REQUIRE A LE ASEHOLD
361-TENANT TO REIMBURSE THE GROUND LEASE HOL DER FOR COSTS INCURR ED IN
362-PROVIDING NOTICE REQ UIRED UNDER THIS SEC TION.
311+“NOTICE REQUIRED BY MARYLAND LAW 21
312+REGARDING YOUR GROUND RENT 22
363313
364- SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect
365-October 1, 2023.
314+This property (address) is subject to a ground lease. The annual payment on the ground 23
315+lease (“ground rent”) is $(dollar amount), payable in yearly or half–yearly installments on 24
316+(date or dates). 25
366317
367-Approved by the Governor, April 24, 2023.
318+The next ground rent payment is due (day, month, year) in the amount of $(dollar amount). 26
319+
320+The payment of the ground rent should be sent to: 27
321+(name of ground lease holder) 28
322+(address) 29
323+(phone number) 30
324+
325+NOTE REGARDING YOUR RIGHTS AND RESPONSIBILITIES UNDER MARYLAND 31
326+LAW: 32
327+
328+The ground lease holder is required to register the ground lease with the State Department 33
329+of Assessments and Taxation and is prohibited from collecting ground rent payments unless 34
330+the ground lease is registered. If the ground lease is registered, as the owner of this 35 8 SENATE BILL 194
331+
332+
333+property, you are obligated to pay the ground rent to the ground lease holder. To determine 1
334+whether the ground lease is registered, you may check the [Web site] WEBSITE of the State 2
335+Department of Assessments and Taxation. It is also your responsibility to notify the ground 3
336+lease holder if you change your address or transfer ownership of the property. 4
337+
338+If you fail to pay the ground rent on time, you are still responsible for paying the ground 5
339+rent. In addition, if the ground lease holder files an action in court to collect the past due 6
340+ground rent, you may be required to pay the ground lease holder for fees and costs 7
341+associated with the collection of the past due ground rent. In addition, the ground lease 8
342+holder may also file an action in court to take possession of the property, which may result 9
343+in your being responsible for additional fees and costs and ultimately in your loss of the 10
344+property. Please note that under Maryland law, a ground lease holder may demand not 11
345+more than 3 years of past due ground rent, and there are limits on how much a ground 12
346+lease holder may be reimbursed for fees and costs. If you fail to pay the ground rent on 13
347+time, you should contact a lawyer for advice. 14
348+
349+As the owner of this property, you are entitled to redeem, or purchase, the ground lease 15
350+from the ground lease holder and obtain absolute ownership of the property. Unless you 16
351+and the ground lease holder agree to a lesser amount, the amount to redeem your ground 17
352+lease is _______. If you wish to redeem the ground lease, contact the ground lease holder. If 18
353+the identity of the ground lease holder is unknown, the State Department of Assessments 19
354+and Taxation provides a process to redeem the ground lease that may result in your 20
355+obtaining absolute ownership of the property. If you would like to obtain absolute 21
356+ownership of this property, you should contact a lawyer for advice.”. 22
357+
358+8–810. 23
359+
360+ (a) Within 30 days after any transfer of a ground lease, the transferee shall notify 24
361+the leasehold tenant AND THE DEPARTMENT of the transfer. 25
362+
363+ (b) (1) The notification shall include the name and address of the new ground 26
364+lease holder and the date of the transfer. 27
365+
366+ (2) If the property is subject to a redeemable ground rent, the notification 28
367+shall also include the following notice: 29
368+
369+ “As the owner of the property subject to this ground lease, you are entitled to redeem, 30
370+or purchase, the ground lease from the ground lease holder and obtain absolute ownership 31
371+of the property. The redemption amount is fixed by law but may also be negotiated with 32
372+the ground lease holder for a different amount. For information on redeeming the ground 33
373+lease, contact the ground lease holder.” 34
374+
375+ (c) (1) A ground lease holder shall send notice under this section to the last 35
376+known address of the leasehold tenant AND THE PREMISES ADD RESS LISTED IN THE 36
377+RECORDS OF THE DEPARTMENT BY FIRST –CLASS MAIL AND CERTI FIED MAIL, 37
378+RETURN RECEIPT REQUE STED. 38 SENATE BILL 194 9
379+
380+
381+
382+ (2) IF A LEASEHOLD TENANT ’S LAST KNOWN MAILING ADDRESS AND 1
383+PREMISES ADDRESS LIS TED IN THE RECORDS O F THE DEPARTMENT ARE 2
384+DIFFERENT, THE GROUND LEASE HOL DER SHALL MAIL ONE C OPY OF THE NOTICE BY 3
385+FIRST–CLASS MAIL AND ONE C OPY OF THE NOTICE BY CERTIFIED MAIL , RETURN 4
386+RECEIPT REQUESTED , TO EACH ADDRESS , RESPECTIVELY . 5
387+
388+ (3) A GROUND LEASE HOLDER MAY NOT REQUIRE A LE ASEHOLD 6
389+TENANT TO REIMBURSE THE GROUND LEASE HOLDER FOR COS TS INCURRED IN 7
390+PROVIDING NOTICE REQ UIRED UNDER THIS SEC TION. 8
391+
392+ SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect 9
393+October 1, 2023. 10
394+
395+
396+
397+
398+
399+Approved:
400+________________________________________________________________________________
401+ Governor.
402+________________________________________________________________________________
403+ President of the Senate.
404+________________________________________________________________________________
405+ Speaker of the House of Delegates.