EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G 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.
Italics indicate opposite chamber/conference committee amendments.
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SENATE BILL 277
N1, D3 (3lr1303)
ENROLLED BILL
— Judicial Proceedings/Judiciary —
Introduced by Senator McKay
Read and Examined by Proofreaders:
_______________________________________________
Proofreader.
_______________________________________________
Proofreader.
Sealed with the Great Seal and presented to the Governor, for his approval this
_______ day of _______________ at _________________ _______ o’clock, ________M.
______________________________________________
President.
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; 9
authorizing the Judiciary to transfer up to a certain amount of a General Fund 10
appropriation to a certain special fund; and generally relating to the enforcement of 11
liens and the sale of real property. 12
BY repealing and reenacting, with amendments, 13
Article – Courts and Judicial Proceedings 14 2 SENATE BILL 277
Section 11–502, 11–504(c), and 11–507 1
Annotated Code of Maryland 2
(2020 Replacement Volume and 2022 Supplement) 3
BY repealing and reenacting, without amendments, 4
Article – Courts and Judicial Proceedings 5
Section 11–504(a) and (b) 6
Annotated Code of Maryland 7
(2020 Replacement Volume and 2022 Supplement) 8
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 9
That the Laws of Maryland read as follows: 10
Article – Courts and Judicial Proceedings 11
11–502. 12
(a) A sheriff shall give notice of the time, place, and terms of the sale of any 13
property under execution before the property can be sold. 14
(b) In the case of a sale of an interest in property, the notice shall be posted on 15
the courthouse door or on a bulletin board in the immediate vicinity of the door of the 16
courthouse and printed in a newspaper, published in the county where the property is 17
located at least: 18
(1) Ten days before the sale of personal property; or 19
(2) 20 days before the sale of real property. 20
(c) If the sheriff gives notice by publication in a newspaper, he may recover the 21
costs of publication from the defendant. If the defendant is unable to pay the costs, the 22
sheriff may recover the costs of publication from the plaintiff. 23
(D) IN ADDITION TO THE NO TICE REQUIREMENT UND ER SUBSECTION (A) OF 24
THIS SECTION, AT LEAST 20 DAYS BEFORE THE SALE OF REAL PROPERTY UND ER 25
EXECUTION, THE JUDGMENT CREDITO R SHALL: 26
(1) SEND NOTICE OF THE TI ME, PLACE, AND TERMS OF THE SALE BY 27
CERTIFIED MAIL AND F IRST–CLASS MAIL TO: 28
(I) THE RECORD OWNER OF T HE PROPERTY ; 29
(II) THE HOLDER OF ANY SUB ORDINATE MORTGAGE , DEED OF 30
TRUST, OR OTHER SUBORDINATE INTEREST, INCLUDING A JUDGMENT ; AND 31
SENATE BILL 277 3
(III) ANY CONDOMINIUM ASSOC IATION OR HOMEOWNERS 1
ASSOCIATION THAT , AT LEAST 20 DAYS BEFORE THE DATE OF THE PROPOSED SALE , 2
HAS RECORDED A STATE MENT OF LIEN AGAINST THE PROPERTY UNDER T HE 3
MARYLAND CONTRACT LIEN ACT; AND 4
(2) SEND NOTICE OF THE TI ME, PLACE, AND TERMS OF THE SAL E BY 5
FIRST–CLASS MAIL TO ALL OC CUPANTS AT THE ADDRE SS OF THE PROPERTY . 6
(E) (1) THE MAILINGS REQUIRED UNDER SUBSECTION (D) OF THIS 7
SECTION SHALL BE SEN T TO THE LAST KNOWN ADDRESS OF EACH PERS ON, 8
INCLUDING TO THE LAS T ADDRESS REASONABLY ASCERTAINABLE FROM A 9
DOCUMENT RECORDED , INDEXED, AND AVAILABLE FOR PU BLIC INSPECTION AT T HE 10
TIME OF THE MAILING . 11
(2) IN THE CASE OF A SUBO RDINATE MORTGAGE OR DEED OF TRUST , 12
THE NOTICE SHALL BE SENT TO THE LAST KNO WN HOLDER OF THE MOR TGAGE, THE 13
LAST KNOWN BENEFICIA RY OF A DEED OF TRUST, OR A TRUSTEE OR BENE FICIARY 14
OF A DEED OF TRUST R EASONABLY ASCERTAINA BLE ON A REVIEW OF T HE LAND 15
RECORDS FOR THE APPL ICABLE COUNTY . 16
(F) THE JUDGMENT CREDITOR SHALL FILE AN AFFIDA VIT WITH THE COURT : 17
(1) STATING THAT THE INDI VIDUAL HAS COMPLIE D WITH THE NOTICE 18
REQUIREMENTS UNDER S UBSECTION (D) OF THIS SECTION; OR 19
(2) (I) STATING THAT THE IDEN TITY OR ADDRESS OF T HE 20
BORROWER , RECORD OWNER , OR HOLDER OF A SUBOR DINATE INTEREST IS N OT 21
REASONABLY ASCERTAIN ABLE; AND 22
(II) DESCRIBING THE REASON ABLE, GOOD FAITH EFFORTS 23
THAT THE INDIVIDUAL MADE TO ASCERTAIN TH E IDENTITY OR ADDRES S OF THE 24
BORROWER , RECORD OWNER , OR HOLDER OF A SUBOR DINATE INTEREST . 25
(G) IF THE REQUIREMENTS O F THIS SECTION ARE S ATISFIED AND THE 26
JUDGMENT CREDITOR HA S COMPLIED WITH A NY APPLICABLE RULES ADOPTED BY 27
THE SUPREME COURT OF MARYLAND, A A SHERIFF’S SALE OF REAL PROPE RTY 28
EXTINGUISHES ANY SUB ORDINATE LIEN OR INT EREST ON THE LAND SU BJECT TO 29
THE SALE. 30
11–504. 31
(a) In this section, “value” means fair market value as of the date upon which the 32
execution or other judicial process becomes effective against the property of the debtor, or 33
the date of filing the petition under the federal Bankruptcy Code. 34 4 SENATE BILL 277
(b) The following items are exempt from execution on a judgment: 1
(1) Wearing apparel, books, tools, instruments, or appliances, in an amount 2
not to exceed $5,000 in value necessary for the practice of any trade or profession except 3
those kept for sale, lease, or barter. 4
(2) Except as provided in subsection (i) of this section, money payable in 5
the event of sickness, accident, injury, or death of any person, including compensation for 6
loss of future earnings. This exemption includes but is not limited to money payable on 7
account of judgments, arbitrations, compromises, insurance, benefits, compensation, and 8
relief. Disability income benefits are not exempt if the judgment is for necessities contracted 9
for after the disability is incurred. 10
(3) Professionally prescribed health aids for the debtor or any dependent of 11
the debtor. 12
(4) The debtor’s interest, not to exceed $1,000 in value, in household 13
furnishings, household goods, wearing apparel, appliances, books, animals kept as pets, 14
and other items that are held primarily for the personal, family, or household use of the 15
debtor or any dependent of the debtor. 16
(5) Cash or property of any kind equivalent in value to $6,000 is exempt, if 17
within 30 days from the date of the attachment or the levy by the sheriff, the debtor elects 18
to exempt cash or selected items of property in an amount not to exceed a cumulative value 19
of $6,000. 20
(6) Money payable or paid in accordance with an agreement or court order 21
for child support. 22
(7) Money payable or paid in accordance with an agreement or court order 23
for alimony to the same extent that wages are exempt from attachment under § 24
15–601.1(b)(1)(ii) or (2)(i) of the Commercial Law Article. 25
(8) The debtor’s beneficial interest in any trust property that is immune 26
from the claims of the debtor’s creditors under § 14.5–511 of the Estates and Trusts Article. 27
(9) With respect to claims by a separate creditor of a husband or wife, trust 28
property that is immune from the claims of the separate creditors of the husband or wife 29
under § 14.5–511 of the Estates and Trusts Article. 30
(c) (1) (I) [In] EXCEPT AS PROVIDED IN SUBPARAGRAPH (II) OF THIS 31
PARAGRAPH , IN order to determine whether the property listed in subsection (b)(4) and 32
(5) of this section is subject to execution, the sheriff shall appraise the property at the time 33
of levy. 34
SENATE BILL 277 5
(II) IF PROPERTY LISTED IN SUBSECTION (B)(4) AND (5) OF THIS 1
SECTION IS REAL PROP ERTY, THE SHERIFF MAY USE THE ASSESSMENT RECOR D IN 2
LIEU OF AN APPRAISAL . 3
(2) The sheriff shall return the appraisal with the writ. 4
[(2)] (3) An appraisal made by the sheriff under this subsection is subject 5
to review by the court on motion of the debtor. 6
[(3)] (4) Procedures will be as prescribed by rules issued by the Supreme 7
Court of Maryland. 8
11–507. 9
[The] NOTWITHSTANDING ANY O THER PROVISION OF TH IS SUBTITLE, THE 10
provisions of this subtitle relative to exemptions do not impair a: 11
(1) Vendor’s purchase money lien on land; 12
(2) Mechanics’ lien; 13
(3) Tax lien; 14
(4) Mortgage; deed of trust; or other security interest; OR 15
(5) LIEN ON LAND AFFECTED BY A JUDGMENT IN FAVOR OF A LOCAL 16
GOVERNMENT FOR REAL PROPERTY MAINTENANCE VIOLATIONS OR NUISAN CE 17
CONDITION VIOLATIONS THAT IS INDEXED AND RECORDED IN ACCORDAN CE WITH 18
THE MARYLAND RULES. 19
SECTION 2. AND BE IT FURTHER ENACTED, That: 20
(a) Notwithstanding any other provision of law, on or before June 30, 2023, the 21
Judiciary may transfer up to $12,000,000 of the fiscal year 2023 General Fund 22
appropriation for the Judiciary to the Circuit Court Real Property Records Improvement 23
Fund established under § 13–602 of the Courts and Judicial Proceedings Article. 24
(b) Notwithstanding § 7–302 of the State Finance and Procurement Article or any 25
other provision of law, any amount transferred under subsection (a) of this section may not 26
revert to the General Fund of the State. 27
SECTION 2. 3. AND BE IT FURTHER ENACTED, That this Act shall take effect 28
October 1, 2023. 29