MD
Maryland Senate Bill SB277

Maryland 2023 Regular Session

Maryland Senate Bill SB277 Compare Versions

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1- WES MOORE, Governor Ch. 762
21
3-– 1 –
4-Chapter 762
5-(Senate Bill 277)
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+ *sb0277*
810
9-Real Property – Sheriff’s Sales – Notice, Procedures, and Subordinate Interests
11+SENATE BILL 277
12+N1, D3 (3lr1303)
13+ENROLLED BILL
14+— Judicial Proceedings/Judiciary —
15+Introduced by Senator McKay
1016
11-FOR the purpose of requiring a judgment creditor to provide certain notice to certain
12-persons of the time, place, and terms of the sale of any real property under execution
13-before the property can be sold and to file a certain affidavit; establishing that a
14-sheriff’s sale of real property extinguishes subordinate liens on the land being sold
15-under certain circumstances; authorizing a sheriff at the time of levy for real
16-property to use the assessment record in lieu of an appraisal of the property;
17-providing that certain provisions of this Act do not impair certain liens on land;
18-authorizing the Judiciary to transfer up to a certain amount of a General Fund
19-appropriation to a certain special fund; and generally relating to the enforcement of
20-liens and the sale of real property.
17+Read and Examined by Proofreaders:
2118
22-BY repealing and reenacting, with amendments,
23- Article – Courts and Judicial Proceedings
24-Section 11–502, 11–504(c), and 11–507
25- Annotated Code of Maryland
26- (2020 Replacement Volume and 2022 Supplement)
19+_______________________________________________
20+Proofreader.
21+_______________________________________________
22+Proofreader.
2723
28-BY repealing and reenacting, without amendments,
29- Article – Courts and Judicial Proceedings
30-Section 11–504(a) and (b)
31- Annotated Code of Maryland
32- (2020 Replacement Volume and 2022 Supplement)
24+Sealed with the Great Seal and presented to the Governor, for his approval this
3325
34- SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
35-That the Laws of Maryland read as follows:
26+_______ day of _______________ at _________________ _______ o’clock, ________M.
3627
37-Article – Courts and Judicial Proceedings
28+______________________________________________
29+President.
3830
39-11–502.
31+CHAPTER ______
4032
41- (a) A sheriff shall give notice of the time, place, and terms of the sale of any
42-property under execution before the property can be sold.
33+AN ACT concerning 1
4334
44- (b) In the case of a sale of an interest in property, the notice shall be posted on
45-the courthouse door or on a bulletin board in the immediate vicinity of the door of the
46-courthouse and printed in a newspaper, published in the county where the property is
47-located at least:
35+Real Property – Sheriff’s Sales – Notice, Procedures, and Subordinate Interests 2
4836
49- (1) Ten days before the sale of personal property; or Ch. 762 2023 LAWS OF MARYLAND
37+FOR the purpose of requiring a judgment creditor to provide certain notice to certain 3
38+persons of the time, place, and terms of the sale of any real property under execution 4
39+before the property can be sold and to file a certain affidavit; establishing that a 5
40+sheriff’s sale of real property extinguishes subordinate liens on the land being sold 6
41+under certain circumstances; authorizing a sheriff at the time of levy for real 7
42+property to use the assessment record in lieu of an appraisal of the property; 8
43+providing that certain provisions of this Act do not impair certain liens on land; 9
44+authorizing the Judiciary to transfer up to a certain amount of a General Fund 10
45+appropriation to a certain special fund; and generally relating to the enforcement of 11
46+liens and the sale of real property. 12
5047
51-– 2 –
48+BY repealing and reenacting, with amendments, 13
49+ Article – Courts and Judicial Proceedings 14 2 SENATE BILL 277
5250
53- (2) 20 days before the sale of real property.
5451
55- (c) If the sheriff gives notice by publication in a newspaper, he may recover the
56-costs of publication from the defendant. If the defendant is unable to pay the costs, the
57-sheriff may recover the costs of publication from the plaintiff.
52+Section 11–502, 11–504(c), and 11–507 1
53+ Annotated Code of Maryland 2
54+ (2020 Replacement Volume and 2022 Supplement) 3
5855
59- (D) IN ADDITION TO THE NO TICE REQUIREMENT UND ER SUBSECTION (A) OF
60-THIS SECTION, AT LEAST 20 DAYS BEFORE THE SALE OF REAL PROPERTY UND ER
61-EXECUTION, THE JUDGMENT CREDITOR SHALL :
56+BY repealing and reenacting, without amendments, 4
57+ Article – Courts and Judicial Proceedings 5
58+Section 11–504(a) and (b) 6
59+ Annotated Code of Maryland 7
60+ (2020 Replacement Volume and 2022 Supplement) 8
6261
63- (1) SEND NOTICE OF THE TI ME, PLACE, AND TERMS OF THE SAL E BY
64-CERTIFIED MAIL AND F IRST–CLASS MAIL TO:
62+ SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 9
63+That the Laws of Maryland read as follows: 10
6564
66- (I) THE RECORD OWNER OF T HE PROPERTY ;
65+Article – Courts and Judicial Proceedings 11
6766
68- (II) THE HOLDER OF ANY SUB ORDINATE MORTGAGE , DEED OF
69-TRUST, OR OTHER SUBORDINATE INTEREST, INCLUDING A JUDGMENT ; AND
67+11–502. 12
7068
71- (III) ANY CONDOMINIUM ASSOC IATION OR HOMEOWNERS
72-ASSOCIATION THAT , AT LEAST 20 DAYS BEFORE THE DATE OF THE PROPOSED SALE ,
73-HAS RECORDED A STATE MENT OF LIEN AGAINST THE PROPERTY UNDER T HE
74-MARYLAND CONTRACT LIEN ACT; AND
69+ (a) A sheriff shall give notice of the time, place, and terms of the sale of any 13
70+property under execution before the property can be sold. 14
7571
76- (2) SEND NOTICE OF THE TI ME, PLACE, AND TERMS OF THE SAL E BY
77-FIRST–CLASS MAIL TO ALL OC CUPANTS AT THE ADDRE SS OF THE PROPERTY .
72+ (b) In the case of a sale of an interest in property, the notice shall be posted on 15
73+the courthouse door or on a bulletin board in the immediate vicinity of the door of the 16
74+courthouse and printed in a newspaper, published in the county where the property is 17
75+located at least: 18
7876
79- (E) (1) THE MAILINGS REQUIRED UNDER SUBSECTION (D) OF THIS
80-SECTION SHALL BE SEN T TO THE LAST KNOWN ADDRESS OF EACH PERS ON,
81-INCLUDING TO THE LAST ADDRE SS REASONABLY ASCERT AINABLE FROM A
82-DOCUMENT RECORDED , INDEXED, AND AVAILABLE FOR PU BLIC INSPECTION AT T HE
83-TIME OF THE MAILING .
77+ (1) Ten days before the sale of personal property; or 19
8478
85- (2) IN THE CASE OF A SUBO RDINATE MORTGAGE OR DEED OF TRUST ,
86-THE NOTICE SHALL BE SENT TO THE LAST KNO WN HOLDER OF THE MORTGA GE, THE
87-LAST KNOWN BENEFICIA RY OF A DEED OF TRUS T, OR A TRUSTEE OR BENE FICIARY
88-OF A DEED OF TRUST R EASONABLY ASCERTAINA BLE ON A REVIEW OF T HE LAND
89-RECORDS FOR THE APPL ICABLE COUNTY .
79+ (2) 20 days before the sale of real property. 20
9080
91- (F) THE JUDGMENT CREDITOR SHALL FILE AN AFFIDA VIT WITH THE COURT:
81+ (c) If the sheriff gives notice by publication in a newspaper, he may recover the 21
82+costs of publication from the defendant. If the defendant is unable to pay the costs, the 22
83+sheriff may recover the costs of publication from the plaintiff. 23
9284
93- (1) STATING THAT THE INDI VIDUAL HAS COMPLIED WITH THE NOTICE
94-REQUIREMENTS UNDER S UBSECTION (D) OF THIS SECTION; OR
95- WES MOORE, Governor Ch. 762
85+ (D) IN ADDITION TO THE NO TICE REQUIREMENT UND ER SUBSECTION (A) OF 24
86+THIS SECTION, AT LEAST 20 DAYS BEFORE THE SALE OF REAL PROPERTY UND ER 25
87+EXECUTION, THE JUDGMENT CREDITO R SHALL: 26
9688
97-– 3 –
98- (2) (I) STATING THAT THE IDEN TITY OR ADDRESS OF T HE
99-BORROWER , RECORD OWNER , OR HOLDER OF A SUBOR DINATE INTEREST IS N OT
100-REASONABLY ASCERTAIN ABLE; AND
89+ (1) SEND NOTICE OF THE TI ME, PLACE, AND TERMS OF THE SALE BY 27
90+CERTIFIED MAIL AND F IRST–CLASS MAIL TO: 28
10191
102- (II) DESCRIBING THE REASON ABLE, GOOD FAITH EFFORTS
103-THAT THE INDIVIDUAL MADE TO ASCERTAIN TH E IDENTITY OR ADDRES S OF THE
104-BORROWER , RECORD OWNER , OR HOLDER OF A SUBOR DINATE INTEREST .
92+ (I) THE RECORD OWNER OF T HE PROPERTY ; 29
10593
106- (G) IF THE REQUIREMENTS O F THIS SECTIO N ARE SATISFIED AND THE
107-JUDGMENT CREDITOR HA S COMPLIED WITH ANY APPLICABLE RULES ADO PTED BY
108-THE SUPREME COURT OF MARYLAND, A A SHERIFF’S SALE OF REAL PROPE RTY
109-EXTINGUISHES ANY SUB ORDINATE LIEN OR INT EREST ON THE LAND SU BJECT TO
110-THE SALE.
94+ (II) THE HOLDER OF ANY SUB ORDINATE MORTGAGE , DEED OF 30
95+TRUST, OR OTHER SUBORDINATE INTEREST, INCLUDING A JUDGMENT ; AND 31
96+ SENATE BILL 277 3
11197
112-11–504.
11398
114- (a) In this section, “value” means fair market value as of the date upon which the
115-execution or other judicial process becomes effective against the property of the debtor, or
116-the date of filing the petition under the federal Bankruptcy Code.
99+ (III) ANY CONDOMINIUM ASSOC IATION OR HOMEOWNERS 1
100+ASSOCIATION THAT , AT LEAST 20 DAYS BEFORE THE DATE OF THE PROPOSED SALE , 2
101+HAS RECORDED A STATE MENT OF LIEN AGAINST THE PROPERTY UNDER T HE 3
102+MARYLAND CONTRACT LIEN ACT; AND 4
117103
118- (b) The following items are exempt from execution on a judgment:
104+ (2) SEND NOTICE OF THE TI ME, PLACE, AND TERMS OF THE SAL E BY 5
105+FIRST–CLASS MAIL TO ALL OC CUPANTS AT THE ADDRE SS OF THE PROPERTY . 6
119106
120- (1) Wearing apparel, books, tools, instruments, or appliances, in an amount
121-not to exceed $5,000 in value necessary for the practice of any trade or profession except
122-those kept for sale, lease, or barter.
107+ (E) (1) THE MAILINGS REQUIRED UNDER SUBSECTION (D) OF THIS 7
108+SECTION SHALL BE SEN T TO THE LAST KNOWN ADDRESS OF EACH PERS ON, 8
109+INCLUDING TO THE LAS T ADDRESS REASONABLY ASCERTAINABLE FROM A 9
110+DOCUMENT RECORDED , INDEXED, AND AVAILABLE FOR PU BLIC INSPECTION AT T HE 10
111+TIME OF THE MAILING . 11
123112
124- (2) Except as provided in subsection (i) of this section, money payable in
125-the event of sickness, accident, injury, or death of any person, including compensation for
126-loss of future earnings. This exemption includes but is not limited to money payable on
127-account of judgments, arbitrations, compromises, insurance, benefits, compensation, and
128-relief. Disability income benefits are not exempt if the judgment is for necessities contracted
129-for after the disability is incurred.
113+ (2) IN THE CASE OF A SUBO RDINATE MORTGAGE OR DEED OF TRUST , 12
114+THE NOTICE SHALL BE SENT TO THE LAST KNO WN HOLDER OF THE MOR TGAGE, THE 13
115+LAST KNOWN BENEFICIA RY OF A DEED OF TRUST, OR A TRUSTEE OR BENE FICIARY 14
116+OF A DEED OF TRUST R EASONABLY ASCERTAINA BLE ON A REVIEW OF T HE LAND 15
117+RECORDS FOR THE APPL ICABLE COUNTY . 16
130118
131- (3) Professionally prescribed health aids for the debtor or any dependent of
132-the debtor.
119+ (F) THE JUDGMENT CREDITOR SHALL FILE AN AFFIDA VIT WITH THE COURT : 17
133120
134- (4) The debtor’s interest, not to exceed $1,000 in value, in household
135-furnishings, household goods, wearing apparel, appliances, books, animals kept as pets,
136-and other items that are held primarily for the personal, family, or household use of the
137-debtor or any dependent of the debtor.
121+ (1) STATING THAT THE INDI VIDUAL HAS COMPLIE D WITH THE NOTICE 18
122+REQUIREMENTS UNDER S UBSECTION (D) OF THIS SECTION; OR 19
138123
139- (5) Cash or property of any kind equivalent in value to $6,000 is exempt, if
140-within 30 days from the date of the attachment or the levy by the sheriff, the debtor elects
141-to exempt cash or selected items of property in an amount not to exceed a cumulative value
142-of $6,000.
143- Ch. 762 2023 LAWS OF MARYLAND
124+ (2) (I) STATING THAT THE IDEN TITY OR ADDRESS OF T HE 20
125+BORROWER , RECORD OWNER , OR HOLDER OF A SUBOR DINATE INTEREST IS N OT 21
126+REASONABLY ASCERTAIN ABLE; AND 22
144127
145-– 4 –
146- (6) Money payable or paid in accordance with an agreement or court order
147-for child support.
128+ (II) DESCRIBING THE REASON ABLE, GOOD FAITH EFFORTS 23
129+THAT THE INDIVIDUAL MADE TO ASCERTAIN TH E IDENTITY OR ADDRES S OF THE 24
130+BORROWER , RECORD OWNER , OR HOLDER OF A SUBOR DINATE INTEREST . 25
148131
149- (7) Money payable or paid in accordance with an agreement or court order
150-for alimony to the same extent that wages are exempt from attachment under §
151-15–601.1(b)(1)(ii) or (2)(i) of the Commercial Law Article.
132+ (G) IF THE REQUIREMENTS O F THIS SECTION ARE S ATISFIED AND THE 26
133+JUDGMENT CREDITOR HA S COMPLIED WITH A NY APPLICABLE RULES ADOPTED BY 27
134+THE SUPREME COURT OF MARYLAND, A A SHERIFF’S SALE OF REAL PROPE RTY 28
135+EXTINGUISHES ANY SUB ORDINATE LIEN OR INT EREST ON THE LAND SU BJECT TO 29
136+THE SALE. 30
152137
153- (8) The debtor’s beneficial interest in any trust property that is immune
154-from the claims of the debtor’s creditors under § 14.5–511 of the Estates and Trusts Article.
138+11–504. 31
155139
156- (9) With respect to claims by a separate creditor of a husband or wife, trust
157-property that is immune from the claims of the separate creditors of the husband or wife
158-under § 14.5–511 of the Estates and Trusts Article.
140+ (a) In this section, “value” means fair market value as of the date upon which the 32
141+execution or other judicial process becomes effective against the property of the debtor, or 33
142+the date of filing the petition under the federal Bankruptcy Code. 34 4 SENATE BILL 277
159143
160- (c) (1) (I) [In] EXCEPT AS PROVIDED IN SUBPARAGRAPH (II) OF THIS
161-PARAGRAPH , IN order to determine whether the property listed in subsection (b)(4) and
162-(5) of this section is subject to execution, the sheriff shall appraise the property at the time
163-of levy.
164144
165- (II) IF PROPERTY LISTED IN SUBSECTION (B)(4) AND (5) OF THIS
166-SECTION IS REAL PROPERTY , THE SHERIFF MAY USE THE ASSESSMENT RECOR D IN
167-LIEU OF AN APPRAISAL .
168145
169- (2) The sheriff shall return the appraisal with the writ.
146+ (b) The following items are exempt from execution on a judgment: 1
170147
171- [(2)] (3) An appraisal made by the sheriff under this subsection is subject
172-to review by the court on motion of the debtor.
148+ (1) Wearing apparel, books, tools, instruments, or appliances, in an amount 2
149+not to exceed $5,000 in value necessary for the practice of any trade or profession except 3
150+those kept for sale, lease, or barter. 4
173151
174- [(3)] (4) Procedures will be as prescribed by rules issued by the Supreme
175-Court of Maryland.
152+ (2) Except as provided in subsection (i) of this section, money payable in 5
153+the event of sickness, accident, injury, or death of any person, including compensation for 6
154+loss of future earnings. This exemption includes but is not limited to money payable on 7
155+account of judgments, arbitrations, compromises, insurance, benefits, compensation, and 8
156+relief. Disability income benefits are not exempt if the judgment is for necessities contracted 9
157+for after the disability is incurred. 10
176158
177-11–507.
159+ (3) Professionally prescribed health aids for the debtor or any dependent of 11
160+the debtor. 12
178161
179- [The] NOTWITHSTANDING ANY O THER PROVISION OF TH IS SUBTITLE, THE
180-provisions of this subtitle relative to exemptions do not impair a:
162+ (4) The debtor’s interest, not to exceed $1,000 in value, in household 13
163+furnishings, household goods, wearing apparel, appliances, books, animals kept as pets, 14
164+and other items that are held primarily for the personal, family, or household use of the 15
165+debtor or any dependent of the debtor. 16
181166
182- (1) Vendor’s purchase money lien on land;
167+ (5) Cash or property of any kind equivalent in value to $6,000 is exempt, if 17
168+within 30 days from the date of the attachment or the levy by the sheriff, the debtor elects 18
169+to exempt cash or selected items of property in an amount not to exceed a cumulative value 19
170+of $6,000. 20
183171
184- (2) Mechanics’ lien;
172+ (6) Money payable or paid in accordance with an agreement or court order 21
173+for child support. 22
185174
186- (3) Tax lien;
175+ (7) Money payable or paid in accordance with an agreement or court order 23
176+for alimony to the same extent that wages are exempt from attachment under § 24
177+15–601.1(b)(1)(ii) or (2)(i) of the Commercial Law Article. 25
187178
188- (4) Mortgage; deed of trust; or other security interest; OR
189- WES MOORE, Governor Ch. 762
179+ (8) The debtor’s beneficial interest in any trust property that is immune 26
180+from the claims of the debtor’s creditors under § 14.5–511 of the Estates and Trusts Article. 27
190181
191-– 5 –
192- (5) LIEN ON LAND AFFECTED BY A JUDGMENT IN FAV OR OF A LOCAL
193-GOVERNMENT FOR REAL PROPERTY MAINTENANCE VIOLATIONS OR NUISAN CE
194-CONDITION VIOLATIONS THAT IS INDEXED AND RECORDED IN ACCORDAN CE WITH
195-THE MARYLAND RULES.
182+ (9) With respect to claims by a separate creditor of a husband or wife, trust 28
183+property that is immune from the claims of the separate creditors of the husband or wife 29
184+under § 14.5–511 of the Estates and Trusts Article. 30
196185
197- SECTION 2. AND BE IT FURTHER ENACTED, That:
186+ (c) (1) (I) [In] EXCEPT AS PROVIDED IN SUBPARAGRAPH (II) OF THIS 31
187+PARAGRAPH , IN order to determine whether the property listed in subsection (b)(4) and 32
188+(5) of this section is subject to execution, the sheriff shall appraise the property at the time 33
189+of levy. 34
190+ SENATE BILL 277 5
198191
199- (a) Notwithstanding any other provision of law, on or before June 30, 2023, the
200-Judiciary may transfer up to $12,000,000 of the fiscal year 2023 General Fund
201-appropriation for the Judiciary to the Circuit Court Real Property Records Improvement
202-Fund established under § 13–602 of the Courts and Judicial Proceedings Article.
203192
204- (b) Notwithstanding § 7–302 of the State Finance and Procurement Article or any
205-other provision of law, any amount transferred under subsection (a) of this section may not
206-revert to the General Fund of the State.
193+ (II) IF PROPERTY LISTED IN SUBSECTION (B)(4) AND (5) OF THIS 1
194+SECTION IS REAL PROP ERTY, THE SHERIFF MAY USE THE ASSESSMENT RECOR D IN 2
195+LIEU OF AN APPRAISAL . 3
207196
208- SECTION 2. 3. AND BE IT FURTHER ENACTED, That this Act shall take effect
209-October 1, 2023.
197+ (2) The sheriff shall return the appraisal with the writ. 4
210198
211-Approved by the Governor, May 16, 2023.
199+ [(2)] (3) An appraisal made by the sheriff under this subsection is subject 5
200+to review by the court on motion of the debtor. 6
201+
202+ [(3)] (4) Procedures will be as prescribed by rules issued by the Supreme 7
203+Court of Maryland. 8
204+
205+11–507. 9
206+
207+ [The] NOTWITHSTANDING ANY O THER PROVISION OF TH IS SUBTITLE, THE 10
208+provisions of this subtitle relative to exemptions do not impair a: 11
209+
210+ (1) Vendor’s purchase money lien on land; 12
211+
212+ (2) Mechanics’ lien; 13
213+
214+ (3) Tax lien; 14
215+
216+ (4) Mortgage; deed of trust; or other security interest; OR 15
217+
218+ (5) LIEN ON LAND AFFECTED BY A JUDGMENT IN FAVOR OF A LOCAL 16
219+GOVERNMENT FOR REAL PROPERTY MAINTENANCE VIOLATIONS OR NUISAN CE 17
220+CONDITION VIOLATIONS THAT IS INDEXED AND RECORDED IN ACCORDAN CE WITH 18
221+THE MARYLAND RULES. 19
222+
223+ SECTION 2. AND BE IT FURTHER ENACTED, That: 20
224+
225+ (a) Notwithstanding any other provision of law, on or before June 30, 2023, the 21
226+Judiciary may transfer up to $12,000,000 of the fiscal year 2023 General Fund 22
227+appropriation for the Judiciary to the Circuit Court Real Property Records Improvement 23
228+Fund established under § 13–602 of the Courts and Judicial Proceedings Article. 24
229+
230+ (b) Notwithstanding § 7–302 of the State Finance and Procurement Article or any 25
231+other provision of law, any amount transferred under subsection (a) of this section may not 26
232+revert to the General Fund of the State. 27
233+
234+ SECTION 2. 3. AND BE IT FURTHER ENACTED, That this Act shall take effect 28
235+October 1, 2023. 29
236+
237+
238+