EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
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SENATE BILL 277
N1, D3 3lr1303
CF 3lr1306
By: Senator McKay
Introduced and read first time: January 26, 2023
Assigned to: Judicial Proceedings
A BILL ENTITLED
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; and 9
generally relating to the enforcement of liens and the sale of real property. 10
BY repealing and reenacting, with amendments, 11
Article – Courts and Judicial Proceedings 12
Section 11–502, 11–504(c), and 11–507 13
Annotated Code of Maryland 14
(2020 Replacement Volume and 2022 Supplement) 15
BY repealing and reenacting, without amendments, 16
Article – Courts and Judicial Proceedings 17
Section 11–504(a) and (b) 18
Annotated Code of Maryland 19
(2020 Replacement Volume and 2022 Supplement) 20
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 21
That the Laws of Maryland read as follows: 22
Article – Courts and Judicial Proceedings 23
11–502. 24
2 SENATE BILL 277
(a) A sheriff shall give notice of the time, place, and terms of the sale of any 1
property under execution before the property can be sold. 2
(b) In the case of a sale of an interest in property, the notice shall be posted on 3
the courthouse door or on a bulletin board in the immediate vicinity of the door of the 4
courthouse and printed in a newspaper, published in the county where the property is 5
located at least: 6
(1) Ten days before the sale of personal property; or 7
(2) 20 days before the sale of real property. 8
(c) If the sheriff gives notice by publication in a newspaper, he may recover the 9
costs of publication from the defendant. If the defendant is unable to pay the costs, the 10
sheriff may recover the costs of publication from the plaintiff. 11
(D) IN ADDITION TO THE NO TICE REQUIRE MENT UNDER SUBSECTION (A) OF 12
THIS SECTION, AT LEAST 20 DAYS BEFORE THE SALE OF REAL PROPERTY UNDER 13
EXECUTION, THE JUDGMENT CREDITO R SHALL: 14
(1) SEND NOTICE OF THE TI ME, PLACE, AND TERMS OF THE SALE BY 15
CERTIFIED MAIL AND F IRST–CLASS MAIL TO: 16
(I) THE RECORD OWNER OF T HE PROPERTY ; 17
(II) THE HOLDER OF ANY SUB ORDINATE MORTGAGE , DEED OF 18
TRUST, OR OTHER SUBORDINATE INTEREST, INCLUDING A JUDGMENT ; AND 19
(III) ANY CONDOMINIUM ASSOCIATION OR HOMEOWNERS 20
ASSOCIATION THAT , AT LEAST 20 DAYS BEFORE THE DATE OF THE PROPOSED SALE , 21
HAS RECORDED A STATE MENT OF LIEN AGAINST THE PROPERTY UNDER THE 22
MARYLAND CONTRACT LIEN ACT; AND 23
(2) SEND NOTICE OF THE TIME, PLACE, AND TERMS OF THE SAL E BY 24
FIRST–CLASS MAIL TO ALL OCCUPANTS AT THE ADDRESS OF THE PROPERTY. 25
(E) (1) THE MAILINGS REQUIRED UNDER SUBSE CTION (D) OF THIS 26
SECTION SHALL BE SENT TO THE LAST KNOWN ADDRESS O F EACH PERSON, 27
INCLUDING TO THE LAS T ADDRE SS REASONABLY ASCERTAINABLE FROM A 28
DOCUMENT RECORDED , INDEXED, AND AVAILABLE FOR PU BLIC INSPECTION AT THE 29
TIME OF THE MAILING. 30
(2) IN THE CASE OF A SUBO RDINATE MORTGAGE OR DEED OF TRUST , 31
THE NOTICE SHALL BE SENT TO THE LAST KNOWN HO LDER OF THE MORTGAGE , THE 32
LAST KNOWN BENEFICIA RY OF A DEED OF TRUS T, OR A TRUSTEE OR BENE FICIARY 33 SENATE BILL 277 3
OF A DEED OF TRUST REASONABLY ASCERTAIN ABLE ON A REVIEW OF THE LAND 1
RECORDS FOR THE APPL ICABLE COUNTY . 2
(F) THE JUDGMENT CREDITOR SHALL FILE AN AFFIDA VIT WITH THE COURT : 3
(1) STATING THAT THE INDIVIDUAL HAS COMPLIED WITH TH E NOTICE 4
REQUIREMENTS UNDER SUBSECTION (D) OF THIS SECTION; OR 5
(2) (I) STATING THAT THE IDENTITY OR ADDRESS OF THE 6
BORROWER , RECORD OWNER , OR HOLDER OF A SUBOR DINATE INTEREST IS N OT 7
REASONABLY ASCERTAINABLE ; AND 8
(II) DESCRIBING THE REASONABLE , GOOD FAITH EFFORTS 9
THAT THE INDIVIDUAL MADE TO ASCERTAIN THE IDENTI TY OR ADDRESS OF THE 10
BORROWER , RECORD OWNER , OR HOLDER OF A SUBOR DINATE INTEREST . 11
(G) IF THE REQUIREMENTS OF THIS SECTION ARE SATISFIED AND THE 12
JUDGMENT CREDITOR HA S COMPLIED WITH ANY APPLICABLE RULES ADOPTED BY 13
THE SUPREME COURT OF MARYLAND, A SHERIFF’S SALE OF REAL PROPE RTY 14
EXTINGUISHES ANY SUBORDINATE LIEN OR INTEREST ON THE LAND SUBJECT TO 15
THE SALE. 16
11–504. 17
(a) In this section, “value” means fair market value as of the date upon which the 18
execution or other judicial process becomes effective against the property of the debtor, or 19
the date of filing the petition under the federal Bankruptcy Code. 20
(b) The following items are exempt from execution on a judgment: 21
(1) Wearing apparel, books, tools, instruments, or appliances, in an amount 22
not to exceed $5,000 in value necessary for the practice of any trade or profession except 23
those kept for sale, lease, or barter. 24
(2) Except as provided in subsection (i) of this section, money payable in 25
the event of sickness, accident, injury, or death of any person, including compensation for 26
loss of future earnings. This exemption includes but is not limited to money payable on 27
account of judgments, arbitrations, compromises, insurance, benefits, compensation, and 28
relief. Disability income benefits are not exempt if the judgment is for necessities contracted 29
for after the disability is incurred. 30
(3) Professionally prescribed health aids for the debtor or any dependent of 31
the debtor. 32
4 SENATE BILL 277
(4) The debtor’s interest, not to exceed $1,000 in value, in household 1
furnishings, household goods, wearing apparel, appliances, books, animals kept as pets, 2
and other items that are held primarily for the personal, family, or household use of the 3
debtor or any dependent of the debtor. 4
(5) Cash or property of any kind equivalent in value to $6,000 is exempt, if 5
within 30 days from the date of the attachment or the levy by the sheriff, the debtor elects 6
to exempt cash or selected items of property in an amount not to exceed a cumulative value 7
of $6,000. 8
(6) Money payable or paid in accordance with an agreement or court order 9
for child support. 10
(7) Money payable or paid in accordance with an agreement or court order 11
for alimony to the same extent that wages are exempt from attachment under § 12
15–601.1(b)(1)(ii) or (2)(i) of the Commercial Law Article. 13
(8) The debtor’s beneficial interest in any trust property that is immune 14
from the claims of the debtor’s creditors under § 14.5–511 of the Estates and Trusts Article. 15
(9) With respect to claims by a separate creditor of a husband or wife, trust 16
property that is immune from the claims of the separate creditors of the husband or wife 17
under § 14.5–511 of the Estates and Trusts Article. 18
(c) (1) (I) [In] EXCEPT AS PROVIDED IN SUBPARAGRAPH (II) OF THIS 19
PARAGRAPH , IN order to determine whether the property listed in subsection (b)(4) and 20
(5) of this section is subject to execution, the sheriff shall appraise the property at the time 21
of levy. 22
(II) IF PROPERTY LISTED IN SUBSECTION (B)(4) AND (5) OF THIS 23
SECTION IS REAL PROP ERTY, THE SHERIFF MAY USE THE ASSESSMENT RECOR D IN 24
LIEU OF AN APPRAISAL . 25
(2) The sheriff shall return the appraisal with the writ. 26
[(2)] (3) An appraisal made by the sheriff under this subsection is subject 27
to review by the court on motion of the debtor. 28
[(3)] (4) Procedures will be as prescribed by rules issued by the Supreme 29
Court of Maryland. 30
11–507. 31
[The] NOTWITHSTANDING ANY OTHER PROVISION OF THIS SUBTITLE , THE 32
provisions of this subtitle relative to exemptions do not impair a: 33
SENATE BILL 277 5
(1) Vendor’s purchase money lien on land; 1
(2) Mechanics’ lien; 2
(3) Tax lien; 3
(4) Mortgage; deed of trust; or other security interest; OR 4
(5) LIEN ON LAND AFFECTED BY A JUDGMEN T IN FAVOR OF A LOCA L 5
GOVERNMENT FOR REAL PROPERTY MA INTENANCE VIOLATIONS OR NUISANCE 6
CONDITION VIOLATIONS THAT IS INDEXED AND RECORDED IN ACCORDAN CE WITH 7
THE MARYLAND RULES. 8
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 9
October 1, 2023. 10