MD
Maryland Senate Bill SB335

Maryland 2023 Regular Session

Maryland Senate Bill SB335 Compare Versions

OldNewDifferences
1- WES MOORE, Governor Ch. 477
21
3-– 1 –
4-Chapter 477
5-(Senate Bill 335)
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+ *sb0335*
89
9-Real Property – Unlawfully Restrictive Covenants – Modification by Counties or
10-Municipalities
10+SENATE BILL 335
11+N1, L3 3lr1167
12+ CF HB 182
13+By: Senator King
14+Introduced and read first time: January 27, 2023
15+Assigned to: Judicial Proceedings
16+Committee Report: Favorable with amendments
17+Senate action: Adopted
18+Read second time: March 4, 2023
1119
12-FOR the purpose of authorizing a county or municipality to execute and record a restrictive
13-covenant modification to an unlawfully restrictive covenant for a property within the
14-boundaries of the county or municipality subject to a certain notice requirement;
15-providing that persons with an ownership interest in property that is subject to an
16-unlawfully restrictive covenant may decline action by a county or municipality to
17-execute and record a restrictive covenant modification; and generally relating to
18-unlawfully restrictive covenants.
20+CHAPTER ______
1921
20-BY repealing and reenacting, with amendments,
21- Article – Real Property
22-Section 3–112
23- Annotated Code of Maryland
24- (2015 Replacement Volume and 2022 Supplement)
22+AN ACT concerning 1
2523
26- SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
27-That the Laws of Maryland read as follows:
24+Real Property – Unlawfully Restrictive Covenants – Modification by Counties or 2
25+Municipalities 3
2826
29-Article – Real Property
27+FOR the purpose of authorizing a county or municipality to execute and record a restrictive 4
28+covenant modification to an unlawfully restrictive covenant for a property within the 5
29+boundaries of the county or municipality subject to a certain notice requirement; 6
30+providing that persons with an ownership interest in property that is subject to an 7
31+unlawfully restrictive covenant may decline action by a county or municipality to 8
32+execute and record a restrictive covenant modification; and generally relating to 9
33+unlawfully restrictive covenants. 10
3034
31-3–112.
35+BY repealing and reenacting, with amendments, 11
36+ Article – Real Property 12
37+Section 3–112 13
38+ Annotated Code of Maryland 14
39+ (2015 Replacement Volume and 2022 Supplement) 15
3240
33- (a) In this section, “unlawfully restrictive covenant” means any recorded covenant
34-or restriction that restricts ownership based on race, religious belief, or national origin.
41+ SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 16
42+That the Laws of Maryland read as follows: 17
3543
36- (b) This section does not apply to an unlawfully restrictive covenant that is part
37-of a declaration, uniform general scheme, or plan of development of a homeowners
38-association, as defined in § 11B–101 of this article.
44+Article – Real Property 18
3945
40- (c) (1) A person may execute and record a restrictive covenant modification to
41-an unlawfully restrictive covenant in accordance with this section if the person:
46+3–112. 19
47+ 2 SENATE BILL 335
4248
43- [(1)] (I) Holds an ownership interest in property that the person believes
44-is subject to the unlawfully restrictive covenant; or
4549
46- [(2)] (II) Is a nonprofit entity that is required to enforce within a defined
47-residential neighborhood:
48- Ch. 477 2023 LAWS OF MARYLAND
50+ (a) In this section, “unlawfully restrictive covenant” means any recorded covenant 1
51+or restriction that restricts ownership based on race, religious belief, or national origin. 2
4952
50-– 2 –
51- [(i)] 1. Covenants that limit architectural alterations,
52-renovations, landscaping elements, or other modifications to residential lots in the
53-neighborhood; and
53+ (b) This section does not apply to an unlawfully restrictive covenant that is part 3
54+of a declaration, uniform general scheme, or plan of development of a homeowners 4
55+association, as defined in § 11B–101 of this article. 5
5456
55- [(ii)] 2. The unlawfully restrictive covenant.
57+ (c) (1) A person may execute and record a restrictive covenant modification to 6
58+an unlawfully restrictive covenant in accordance with this section if the person: 7
5659
57- (2) (I) SUBJECT TO SUBPARAGRA PH (II) OF THIS PARAGRAPH , A
58-COUNTY OR MUNICIPALITY MAY EXE CUTE AND RECORD A RE STRICTIVE COVENANT
59-MODIFICATION TO AN U NLAWFULLY RESTRICTIV E COVENANT IN ACCORD ANCE WITH
60-THIS SECTION IF:
60+ [(1)] (I) Holds an ownership interest in property that the person believes 8
61+is subject to the unlawfully restrictive covenant; or 9
6162
62- 1. THE PROPERTY THAT THE COUNTY OR MUNICIPALITY
63-BELIEVES IS SUBJECT TO AN UNLAWFULLY RES TRICTIVE COVENANT IS WITHIN THE
64-BOUNDARIES OF THE COUNTY OR MUNICIPALITY; AND
63+ [(2)] (II) Is a nonprofit entity that is required to enforce within a defined 10
64+residential neighborhood: 11
6565
66- 2. AT LEAST 30 DAYS BEFORE EXECUTIN G AND
67-RECORDING THE RESTRI CTIVE COVENANT MODIF ICATION, THE COUNTY OR
68-MUNICIPALITY PROVIDE S WRITTEN NOTICE IN ACCORDANCE WITH SUBP ARAGRAPH
69-(III) OF THIS PARAGRAPH OF THE COUNTY’S OR MUNICIPALITY’S INTENT TO
70-EXECUTE AND RECORD T HE RESTRICTIVE COVEN ANT MODIFICATION TO ALL
71-PERSONS WITH AN OWNE RSHIP INTEREST IN THE PROPERTY .
66+ [(i)] 1. Covenants that limit architectural alterations, 12
67+renovations, landscaping elements, or other modifications to residential lots in the 13
68+neighborhood; and 14
7269
73- (II) A PERSON WITH AN OWNER SHIP INTEREST IN THE
74-PROPERTY MAY DECLINE TO HAVE THE RESTRICT IVE COVENANT MODIFIC ATION
75-EXECUTED AND RECORDE D BY THE COUNTY OR MUNICIPALITY BY NOTI FYING THE
76-COUNTY OR MUNICIPALITY WITHIN 30 DAYS AFTER THE DA TE OF NOTICE.
70+ [(ii)] 2. The unlawfully restrictive covenant. 15
7771
78- (III) NOTICE UNDER SUBPARAG RAPH (I)2 OF THIS PARAGRAPH
79-SHALL:
72+ (2) (I) SUBJECT TO SUBPARAGRA PH (II) OF THIS PARAGRAPH , A 16
73+COUNTY OR MUNICIPALITY MAY EXE CUTE AND RECORD A RE STRICTIVE COVENANT 17
74+MODIFICATION TO AN U NLAWFULLY RESTRICTIV E COVENANT IN ACCORDANCE WITH 18
75+THIS SECTION IF: 19
8076
81- 1. BE SENT BY FIRST–CLASS MAIL; AND
77+ 1. THE PROPERTY THAT THE COUNTY OR MUNICIPALITY 20
78+BELIEVES IS SUBJECT TO AN UNLAWFULLY RES TRICTIVE COVENANT IS WITHIN THE 21
79+BOUNDARIES OF THE COUNTY OR MUNICIPALITY; AND 22
8280
83- 2. PROVIDE INFORMATION O N HOW A PERSON WITH AN
84-OWNERSHIP INTEREST I N THE PROPERTY MAY D ECLINE TO HAVE THE R ESTRICTIVE
85-COVENANT MOD IFICATION EXECUTED A ND RECORDED BY THE COUNTY OR
86-MUNICIPALITY.
81+ 2. AT LEAST 30 DAYS BEFORE EXECUTIN G AND 23
82+RECORDING THE RESTRICTIVE COVENANT MODIFICATIO N, THE COUNTY OR 24
83+MUNICIPALITY PROVIDE S WRITTEN NOTICE IN ACCORDANCE WITH SUBP ARAGRAPH 25
84+(III) OF THIS PARAGRAPH OF THE COUNTY’S OR MUNICIPALITY’S INTENT TO 26
85+EXECUTE AND RECORD T HE RESTRICTIVE COVEN ANT MODIFICATION TO ALL 27
86+PERSONS WITH AN OWNE RSHIP INTEREST IN TH E PROPERTY. 28
8787
88- (d) (1) A restrictive covenant modification shall:
88+ (II) A PERSON WITH AN OWNER SHIP INTEREST IN THE 29
89+PROPERTY MAY DECLINE TO HAVE THE RESTRICT IVE COVENANT MODIFIC ATION 30
90+EXECUTED AND RECORDE D BY THE COUNTY OR MUNICIPALITY BY NOTI FYING THE 31
91+COUNTY OR MUNICIPALITY WITHIN 30 DAYS AFTER THE DATE OF NOTICE. 32
8992
90- (i) Consist of a complete copy of the original instrument containing
91-the unlawfully restrictive covenant with the language of the unlawfully restrictive covenant
92-stricken; and
93- WES MOORE, Governor Ch. 477
93+ (III) NOTICE UNDER SUBPARAG RAPH (I)2 OF THIS PARAGRAPH 33
94+SHALL: 34 SENATE BILL 335 3
9495
95-– 3 –
96- (ii) Be accompanied by a complete restrictive covenant modification
97-intake sheet, on the form that the Administrative Office of the Courts provides.
9896
99- (2) The restrictive covenant modification intake sheet described in
100-paragraph (1)(ii) of this subsection shall:
10197
102- (i) 1. Be signed by the record owner of the property; or
98+ 1. BE SENT BY FIRST–CLASS MAIL; AND 1
10399
104- 2. In the case of a nonprofit entity, be accompanied by a
105-statement that a majority of the governing body of the nonprofit entity has agreed to the
106-restrictive covenant modification;
100+ 2. PROVIDE INFORMATION O N HOW A PERSON WITH AN 2
101+OWNERSHIP INTEREST I N THE PROPERTY MAY D ECLINE TO HAVE THE R ESTRICTIVE 3
102+COVENANT MODIFICATIO N EXECUTED AND RECOR DED BY THE COUNTY OR 4
103+MUNICIPALITY. 5
107104
108- (ii) Reference the book and page number or other place where the
109-original instrument containing the unlawfully restrictive covenant is recorded; and
105+ (d) (1) A restrictive covenant modification shall: 6
110106
111- (iii) Include any other information that the Administrative Office of
112-the Courts considers necessary in carrying out the requirements of this section.
107+ (i) Consist of a complete copy of the original instrument containing 7
108+the unlawfully restrictive covenant with the language of the unlawfully restrictive covenant 8
109+stricken; and 9
113110
114- (e) (1) On receipt of a restrictive covenant modification, the clerk of the circuit
115-court shall submit the restrictive covenant modification together with a copy of the original
116-instrument referenced in the restrictive covenant modification to the county attorney.
111+ (ii) Be accompanied by a complete restrictive covenant modification 10
112+intake sheet, on the form that the Administrative Office of the Courts provides. 11
117113
118- (2) The county attorney shall:
114+ (2) The restrictive covenant modification intake sheet described in 12
115+paragraph (1)(ii) of this subsection shall: 13
119116
120- (i) Review the restrictive covenant modification and the copy of the
121-original instrument to determine:
117+ (i) 1. Be signed by the record owner of the property; or 14
122118
123- 1. Whether the original instrument contains an unlawfully
124-restrictive covenant; and
119+ 2. In the case of a nonprofit entity, be accompanied by a 15
120+statement that a majority of the governing body of the nonprofit entity has agreed to the 16
121+restrictive covenant modification; 17
125122
126- 2. Whether the restrictive covenant modification correctly
127-strikes through only the language of the unlawfully restrictive covenant; and
123+ (ii) Reference the book and page number or other place where the 18
124+original instrument containing the unlawfully restrictive covenant is recorded; and 19
128125
129- (ii) On completion of the review, return the restrictive covenant
130-modification and copy of the original to the clerk of the circuit court together with the
131-county attorney’s determination.
126+ (iii) Include any other information that the Administrative Office of 20
127+the Courts considers necessary in carrying out the requirements of this section. 21
132128
133- (3) The clerk of the circuit court may not record a restrictive covenant
134-modification unless the county attorney determines that the modification is appropriate in
135-accordance with paragraph (2) of this subsection.
129+ (e) (1) On receipt of a restrictive covenant modification, the clerk of the circuit 22
130+court shall submit the restrictive covenant modification together with a copy of the original 23
131+instrument referenced in the restrictive covenant modification to the county attorney. 24
136132
137- (f) A restrictive covenant modification shall be indexed in the same manner as
138-the original instrument.
133+ (2) The county attorney shall: 25
139134
140- (g) (1) Subject to all covenants, conditions, and restrictions that were recorded
141-after the recording of the original instrument, the restrictions contained in the restrictive Ch. 477 2023 LAWS OF MARYLAND
135+ (i) Review the restrictive covenant modification and the copy of the 26
136+original instrument to determine: 27
142137
143-– 4 –
144-covenant modification, once recorded, are the only restrictions based on the original
145-instrument that apply to the property.
138+ 1. Whether the original instrument contains an unlawfully 28
139+restrictive covenant; and 29
146140
147- (2) The effective date of the terms and conditions contained in the
148-restrictive covenant modification shall be the same as the effective date of the original
149-instrument.
141+ 2. Whether the restrictive covenant modification correctly 30
142+strikes through only the language of the unlawfully restrictive covenant; and 31
143+ 4 SENATE BILL 335
150144
151- (h) If a person causes to be recorded a restrictive covenant modification that
152-contains modifications not authorized under this section:
153145
154- (1) The clerk of the circuit court may not incur any liability for recording
155-the restrictive covenant modification;
146+ (ii) On completion of the review, return the restrictive covenant 1
147+modification and copy of the original to the clerk of the circuit court together with the 2
148+county attorney’s determination. 3
156149
157- (2) The county may not incur any liability as a result of a determination
158-rendered by the county attorney under subsection (e) of this section; and
150+ (3) The clerk of the circuit court may not record a restrictive covenant 4
151+modification unless the county attorney determines that the modification is appropriate in 5
152+accordance with paragraph (2) of this subsection. 6
159153
160- (3) Any liability that results from the unauthorized recordation shall be
161-the sole responsibility of the person that executed the restrictive covenant modification.
154+ (f) A restrictive covenant modification shall be indexed in the same manner as 7
155+the original instrument. 8
162156
163- SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect
164-October 1, 2023.
157+ (g) (1) Subject to all covenants, conditions, and restrictions that were recorded 9
158+after the recording of the original instrument, the restrictions contained in the restrictive 10
159+covenant modification, once recorded, are the only restrictions based on the original 11
160+instrument that apply to the property. 12
165161
166-Approved by the Governor, May 8, 2023.
162+ (2) The effective date of the terms and conditions contained in the 13
163+restrictive covenant modification shall be the same as the effective date of the original 14
164+instrument. 15
165+
166+ (h) If a person causes to be recorded a restrictive covenant modification that 16
167+contains modifications not authorized under this section: 17
168+
169+ (1) The clerk of the circuit court may not incur any liability for recording 18
170+the restrictive covenant modification; 19
171+
172+ (2) The county may not incur any liability as a result of a determination 20
173+rendered by the county attorney under subsection (e) of this section; and 21
174+
175+ (3) Any liability that results from the unauthorized recordation shall be 22
176+the sole responsibility of the person that executed the restrictive covenant modification. 23
177+
178+ SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 24
179+October 1, 2023. 25
180+
181+
182+