EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
Underlining indicates amendments to bill.
Strike out indicates matter stricken from the bill by amendment or deleted from the law by
amendment.
*sb0277*
SENATE BILL 277
N1, D3 3lr1303
CF HB 729
By: Senator McKay
Introduced and read first time: January 26, 2023
Assigned to: Judicial Proceedings
Committee Report: Favorable with amendments
Senate action: Adopted
Read second time: February 25, 2023
CHAPTER ______
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 2 SENATE BILL 277
Article – Courts and Judicial Proceedings 1
11–502. 2
(a) A sheriff shall give notice of the time, place, and terms of the sale of any 3
property under execution before the property can be sold. 4
(b) In the case of a sale of an interest in property, the notice shall be posted on 5
the courthouse door or on a bulletin board in the immediate vicinity of the door of the 6
courthouse and printed in a newspaper, published in the county where the property is 7
located at least: 8
(1) Ten days before the sale of personal property; or 9
(2) 20 days before the sale of real property. 10
(c) If the sheriff gives notice by publication in a newspaper, he may recover the 11
costs of publication from the defendant. If the defendant is unable to pay the costs, the 12
sheriff may recover the costs of publication from the plaintiff. 13
(D) IN ADDITION TO THE NO TICE REQUIREMENT UND ER SUBSECTION (A) OF 14
THIS SECTION, AT LEAST 20 DAYS BEFORE THE SALE OF REAL PROPERTY UND ER 15
EXECUTION, THE JUDGMENT CREDITO R SHALL: 16
(1) SEND NOTICE OF THE TI ME, PLACE, AND TERMS OF THE SAL E BY 17
CERTIFIED MAIL AND F IRST–CLASS MAIL TO: 18
(I) THE RECORD OWNER OF T HE PROPERTY ; 19
(II) THE HOLDER OF ANY SUBORDINATE MORT GAGE, DEED OF 20
TRUST, OR OTHER SUBORDINATE INTEREST, INCLUDING A JUDGMENT ; AND 21
(III) ANY CONDOMINIUM ASSOC IATION OR HOMEOWNERS 22
ASSOCIATION THAT , AT LEAST 20 DAYS BEFORE THE DATE OF THE PROPOSED SALE , 23
HAS RECORDED A STATE MENT OF LIEN AGAINST THE PRO PERTY UNDER THE 24
MARYLAND CONTRACT LIEN ACT; AND 25
(2) SEND NOTICE OF THE TI ME, PLACE, AND TERMS OF THE SAL E BY 26
FIRST–CLASS MAIL TO ALL OC CUPANTS AT THE ADDRE SS OF THE PROPERTY . 27
(E) (1) THE MAILINGS REQUIRED UNDER SUBSECTION (D) OF THIS 28
SECTION SHALL BE SEN T TO THE LAST KNOWN ADDRESS OF EACH PERS ON, 29
INCLUDING TO THE LAS T ADDRESS REASONABLY ASCERTAINABLE FROM A 30 SENATE BILL 277 3
DOCUMENT RECORDED , INDEXED, AND AVAILABLE FOR PU BLIC INSPECTION AT T HE 1
TIME OF THE MAILING . 2
(2) IN THE CASE OF A SUBO RDINATE MORTGAGE OR DEED O F TRUST, 3
THE NOTICE SHALL BE SENT TO THE LAST KNO WN HOLDER OF THE MOR TGAGE, THE 4
LAST KNOWN BENEFICIA RY OF A DEED OF TRUS T, OR A TRUSTEE OR BENE FICIARY 5
OF A DEED OF TRUST R EASONABLY ASCERTAINA BLE ON A REVIEW OF T HE LAND 6
RECORDS FOR THE APPL ICABLE COUNTY . 7
(F) THE JUDGMENT CREDITOR SHALL FILE AN AFFIDA VIT WITH THE COURT : 8
(1) STATING THAT THE INDI VIDUAL HAS COMPLIED WITH THE NOTICE 9
REQUIREMENTS UNDER S UBSECTION (D) OF THIS SECTION; OR 10
(2) (I) STATING THAT THE IDEN TITY OR ADDRESS OF TH E 11
BORROWER , RECORD OWNER , OR HOLDER OF A SUBOR DINATE INTEREST IS N OT 12
REASONABLY ASCERTAIN ABLE; AND 13
(II) DESCRIBING THE REASON ABLE, GOOD FAITH EFFORTS 14
THAT THE INDIVIDUAL MADE TO ASCERTAIN TH E IDENTITY OR ADDRES S OF THE 15
BORROWER , RECORD OWNER, OR HOLDER OF A SUBOR DINATE INTEREST . 16
(G) IF THE REQUIREMENTS O F THIS SECTION ARE S ATISFIED AND THE 17
JUDGMENT CREDITOR HA S COMPLIED WITH ANY APPLICABLE RULES ADO PTED BY 18
THE SUPREME COURT OF MARYLAND, A A SHERIFF’S SALE OF REAL PROPE RTY 19
EXTINGUISHES ANY SUB ORDINATE LIEN OR INT EREST ON THE LAND SU BJECT TO 20
THE SALE. 21
11–504. 22
(a) In this section, “value” means fair market value as of the date upon which the 23
execution or other judicial process becomes effective against the property of the debtor, or 24
the date of filing the petition under the federal Bankruptcy Code. 25
(b) The following items are exempt from execution on a judgment: 26
(1) Wearing apparel, books, tools, instruments, or appliances, in an amount 27
not to exceed $5,000 in value necessary for the practice of any trade or profession except 28
those kept for sale, lease, or barter. 29
(2) Except as provided in subsection (i) of this section, money payable in 30
the event of sickness, accident, injury, or death of any person, including compensation for 31
loss of future earnings. This exemption includes but is not limited to money payable on 32
account of judgments, arbitrations, compromises, insurance, benefits, compensation, and 33 4 SENATE BILL 277
relief. Disability income benefits are not exempt if the judgment is for necessities contracted 1
for after the disability is incurred. 2
(3) Professionally prescribed health aids for the debtor or any dependent of 3
the debtor. 4
(4) The debtor’s interest, not to exceed $1,000 in value, in household 5
furnishings, household goods, wearing apparel, appliances, books, animals kept as pets, 6
and other items that are held primarily for the personal, family, or household use of the 7
debtor or any dependent of the debtor. 8
(5) Cash or property of any kind equivalent in value to $6,000 is exempt, if 9
within 30 days from the date of the attachment or the levy by the sheriff, the debtor elects 10
to exempt cash or selected items of property in an amount not to exceed a cumulative value 11
of $6,000. 12
(6) Money payable or paid in accordance with an agreement or court order 13
for child support. 14
(7) Money payable or paid in accordance with an agreement or court order 15
for alimony to the same extent that wages are exempt from attachment under § 16
15–601.1(b)(1)(ii) or (2)(i) of the Commercial Law Article. 17
(8) The debtor’s beneficial interest in any trust property that is immune 18
from the claims of the debtor’s creditors under § 14.5–511 of the Estates and Trusts Article. 19
(9) With respect to claims by a separate creditor of a husband or wife, trust 20
property that is immune from the claims of the separate creditors of the husband or wife 21
under § 14.5–511 of the Estates and Trusts Article. 22
(c) (1) (I) [In] EXCEPT AS PROVIDED IN SUBPARAGRAPH (II) OF THIS 23
PARAGRAPH , IN order to determine whether the property listed in subsection (b)(4) and 24
(5) of this section is subject to execution, the sheriff shall appraise the property at the time 25
of levy. 26
(II) IF PROPERTY LISTED IN SUBSECTION (B)(4) AND (5) OF THIS 27
SECTION IS REAL PROPERTY , THE SHERIFF MAY USE THE ASSESSMENT RECOR D IN 28
LIEU OF AN APPRAISAL . 29
(2) The sheriff shall return the appraisal with the writ. 30
[(2)] (3) An appraisal made by the sheriff under this subsection is subject 31
to review by the court on motion of the debtor. 32
[(3)] (4) Procedures will be as prescribed by rules issued by the Supreme 33
Court of Maryland. 34 SENATE BILL 277 5
11–507. 1
[The] NOTWITHSTANDING ANY O THER PROVISION OF TH IS SUBTITLE, THE 2
provisions of this subtitle relative to exemptions do not impair a: 3
(1) Vendor’s purchase money lien on land; 4
(2) Mechanics’ lien; 5
(3) Tax lien; 6
(4) Mortgage; deed of trust; or other security interest; OR 7
(5) LIEN ON LAND AFFECTED BY A JUDGMENT IN FAVOR OF A L OCAL 8
GOVERNMENT FOR REAL PROPERTY MAINTENANCE VIOLATIONS OR NUISAN CE 9
CONDITION VIOLATIONS THAT IS INDEXED AND RECORDED IN ACCORDAN CE WITH 10
THE MARYLAND RULES. 11
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 12
October 1, 2023. 13
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
President of the Senate.
________________________________________________________________________________
Speaker of the House of Delegates.