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.
*sb0769*
SENATE BILL 769
N1, N2, Q1 3lr2082
CF HB 865
By: Senator Carter (By Request – Baltimore City Administration)
Introduced and read first time: February 6, 2023
Assigned to: Judicial Proceedings
Committee Report: Favorable
Senate action: Adopted
Read second time: March 6, 2023
CHAPTER ______
AN ACT concerning 1
Baltimore City – Residential Real Property – Disclaimed Property and 2
Exemptions From Prepayment 3
FOR the purpose of authorizing Baltimore City to acquire certain disclaimed residential 4
real property of a decedent’s estate under certain circumstances; prohibiting a person 5
from seeking to recover an interest in certain residential real property, or the value 6
of that property, if Baltimore City acquires title to the property in accordance with 7
this Act; exempting, under certain circumstances, grants of certain residential real 8
property from the estate of a decedent to a certain heir of the decedent and transfers 9
of certain residential real property disclaimed by an estate from certain provisions 10
of law requiring the prepayment of certain real property taxes; and generally 11
relating to residential real property in Baltimore City. 12
BY repealing and reenacting, with amendments, 13
Article – Estates and Trusts 14
Section 3–105 and 10–103(b) 15
Annotated Code of Maryland 16
(2022 Replacement Volume and 2022 Supplement) 17
BY adding to 18
Article – Estates and Trusts 19
Section 10–106 20
Annotated Code of Maryland 21
(2022 Replacement Volume and 2022 Supplement) 22
2 SENATE BILL 769
BY repealing and reenacting, without amendments, 1
Article – Real Property 2
Section 3–104(a) and (b) 3
Annotated Code of Maryland 4
(2015 Replacement Volume and 2022 Supplement) 5
BY repealing and reenacting, with amendments, 6
Article – Real Property 7
Section 3–104(c) 8
Annotated Code of Maryland 9
(2015 Replacement Volume and 2022 Supplement) 10
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 11
That the Laws of Maryland read as follows: 12
Article – Estates and Trusts 13
3–105. 14
(a) (1) (i) The provisions of this subsection are applicable if there is no 15
person entitled to take under §§ 3–102 through 3–104 of this subtitle. 16
(ii) The provisions of this subsection do not apply to [any]: 17
1. ANY portion of a decedent’s estate that is comprised of 18
land that is the subject of an application for a certificate of reservation for public use under 19
Title 13, Subtitle 3 of the Real Property Article; OR 20
2. RESIDENTIAL REAL PROP ERTY OF A DECEDENT ’S 21
ESTATE THAT IS DISCLAI MED BY A PERSON IN A CCORDANCE WITH TITLE 9, 22
SUBTITLE 2 OF THIS ARTICLE AND TITLE TO WHICH IS AC QUIRED BY BALTIMORE 23
CITY UNDER § 10–106 OF THIS ARTICLE . 24
(2) (i) If an individual was a recipient of long–term care benefits under 25
the Maryland Medical Assistance Program at the time of the individual’s death, the net 26
estate shall be converted to cash and paid to the Maryland Department of Health, and shall 27
be applied for the administration of the program. 28
(ii) If the provisions of subparagraph (i) of this paragraph are not 29
applicable, the net estate shall be converted to cash and paid to the board of education in 30
the county in which the letters were granted, and shall be applied for the use of the public 31
schools in the county. 32
(b) (1) After payment has been made to the Maryland Department of Health 33
or to the board of education, if a claim for refund is filed by a relative within the fifth degree 34
living at the death of the decedent or by the personal representative of the relative, and the 35 SENATE BILL 769 3
claim is allowed, the claimant shall be entitled to a refund, without interest, of the sum 1
paid. 2
(2) A claim for refund under this subsection may not be filed after the later 3
of: 4
(i) 3 years after the death of the decedent; or 5
(ii) 1 year after the time of distribution of the property. 6
10–103. 7
(b) (1) Except as provided in [§ 10–102] §§ 10–102 AND 10–106 of this 8
subtitle and § 7–308 of the Tax – General Article, the right of a person seeking to recover 9
property improperly distributed, or the value of it, from a person to whom property has 10
been distributed is forever barred at the later of: 11
(i) Three years from the death of the decedent; or 12
(ii) One year from the time of distribution of the property. 13
(2) This subsection does not bar recovery of property or the value of it 14
received as the result of the heir’s or legatee’s participation in a fraudulent distribution. 15
10–106. 16
(A) THIS SECTION SHALL AP PLY ONLY IN BALTIMORE CITY. 17
(B) IF RESIDENTIAL REAL P ROPERTY HAS BEEN DIS CLAIMED FROM A 18
DECEDENT’S ESTATE AS A DISCLA IMED INTEREST UNDER TITLE 9, SUBTITLE 2 OF 19
THIS ARTICLE, BALTIMORE CITY MAY ACQUIRE TITL E TO THE PROPERTY IF : 20
(1) THE RESIDENTIAL REAL PROPERTY IS LOCATED IN BALTIMORE 21
CITY; 22
(2) THE ESTATE WAS CLOSED IN BALTIMORE CITY; AND 23
(3) THE APPOINTMENT OF TH E PERSONAL REPRESENT ATIVE HAS 24
TERMINATED UNDER § 10–101 OF THIS SUBTITLE. 25
(C) IF BALTIMORE CITY SEEKS TO ACQUIRE TITLE TO THE RESIDEN TIAL 26
REAL PROPERTY UNDER THIS SECTION, THE ESTATE NEED NOT BE REOPENED A ND 27
NOTICE NEED NOT BE P ROVIDED TO ANY INTER ESTED PARTIES. 28
4 SENATE BILL 769
(D) THE RIGHT OF A PERSON SEEKING TO RECOVER A N INTEREST IN THE 1
DISCLAIMED RESIDENTI AL REAL PROPERTY , OR THE VALUE OF THAT PROPERTY, IS 2
FOREVER BARRED UNDER THIS SECTION IF BALTIMORE CITY ACQUIRES TITLE TO 3
THE PROPERTY IN ACCO RDANCE WITH THIS SEC TION. 4
Article – Real Property 5
3–104. 6
(a) (1) The Clerk of the Circuit Court may record an instrument that effects a 7
change of ownership if the instrument is: 8
(i) Endorsed with the certificate of the collector of taxes of the 9
county in which the property is assessed, required under subsection (b) of this section; 10
(ii) 1. Accompanied by a complete intake sheet; or 11
2. Endorsed by the assessment office for the county as 12
provided in subsection (g)(8) of this section; and 13
(iii) Accompanied by a copy of the instrument, and any survey, for 14
submission to the Department of Assessments and Taxation. 15
(2) The Supervisor of Assessments shall transfer ownership of property in 16
the assessment records, effective as of the date of recordation, upon receipt from the Clerk 17
of the Circuit Court of a copy of the instrument, the completed intake sheet, and any survey 18
submitted under paragraph (1) of this subsection. 19
(b) (1) (i) Except as provided in subsection (c) of this section, property may 20
not be transferred on the assessment books or records until: 21
1. All public taxes, assessments, and charges currently due 22
and owed on the property have been paid to the treasurer, tax collector, or director of 23
finance of the county in which the property is assessed; and 24
2. All taxes on personal property in the county due by the 25
transferor have been paid when all land owned by the transferor in the county is being 26
transferred. 27
(ii) The certificate of the collecting agent designated by law, showing 28
that all taxes, assessments, and charges have been paid, shall be endorsed on the deed, and 29
the endorsement shall be sufficient authority for transfer on the assessment books. 30
(2) (i) Except as provided in subsection (c) of this section, in Allegany, 31
Cecil, Charles, Dorchester, Harford, Howard, Kent, Queen Anne’s, Somerset, and St. 32
Mary’s counties no property may be transferred on the assessment books or records until: 33
SENATE BILL 769 5
1. All public taxes, assessments, any charges due a 1
municipal corporation, and charges due on the property have been paid as required by law; 2
and 3
2. All taxes on personal property in the county due by the 4
transferor have been paid when all land owned by the transferor in the county and 5
municipal corporation is being transferred. 6
(ii) The certificate of the collecting agent and municipal corporation 7
designated by law showing that all taxes, assessments, and charges have been paid, shall 8
be endorsed on the deed and the endorsement shall be sufficient authority for transfer on 9
the assessment books. 10
(c) (1) (i) 1. The requirements for prepayment of personal property 11
taxes in subsection (b) of this section do not apply to grants of land made: 12
[1.] A. By or on behalf of any mortgagee, lien creditor, 13
trustee of a deed of trust, judgment creditor, trustee in bankruptcy or receiver, and any 14
other court–appointed officer in an insolvency or liquidation proceeding; or 15
[2.] B. By a deed in lieu of foreclosure to any holder of a 16
mortgage or deed of trust or to the holder’s assignee or designee. 17
2. IN BALTIMORE CITY, THE REQUIREMENTS FOR 18
PREPAYMENT OF REAL P ROPERTY TAXES IN SUB SECTION (B) OF THIS SECTION DO 19
NOT APPLY TO: 20
A. GRANTS OF LAND THAT T RANSFER RESIDENTIAL 21
REAL PROPER TY FROM THE ESTATE O F A DECEDENT TO AN H EIR OF THE DECEDENT , 22
IF THE HEIR OF THE D ECEDENT ENTERS INTO A PAYMENT PLAN WITH THE 23
BALTIMORE CITY BUREAU OF REVENUE COLLECTIONS TO PAY AL L PUBLIC TAXES, 24
ASSESSMENTS , AND CHARGES CURRENTL Y DUE AND OWED ON TH AT PROPERTY; OR 25
B. THE TRANSFER OF RESID ENTIAL REAL PROPERTY TO 26
BALTIMORE CITY IN ACCORDANCE WI TH § 10–106 OF THE ESTATES AND TRUSTS 27
ARTICLE. 28
(ii) Notwithstanding any other provision of law, and except as 29
provided in subparagraph (iii) of this paragraph, after the recordation of a deed or other 30
instrument that effects a grant of land described in subparagraph [(i)] (I)1 of this 31
paragraph, the land shall be free and clear of, and unencumbered by, any lien or claim of 32
lien for any unpaid taxes on personal property. 33
(iii) Subparagraph (ii) of this paragraph does not apply to: 34
6 SENATE BILL 769
1. Any lien for unpaid taxes on personal property that 1
attached to the land by recording and indexing a notice as provided in § 14–804(b) of the 2
Tax – Property Article prior to the recording of the mortgage, lien, deed of trust, or other 3
encumbrance giving rise to the grant of land described in subparagraph [(i)] (I)1 of this 4
paragraph; or 5
2. Unpaid taxes on personal property owed by the transferee 6
or subsequent owner of the land after a grant of land described in subparagraph [(i)] (I)1 7
of this paragraph. 8
(iv) This paragraph does not affect the rights of the personal property 9
tax lienholder to make a claim to any surplus proceeds from a judicial sale of land resulting 10
in a grant of land described in subparagraph [(i)] (I)1 of this paragraph. 11
(2) Subsection (b) of this section does not apply in Charles, St. Mary’s, 12
Dorchester, Harford, Howard, Kent, Prince George’s, Worcester, Carroll, Montgomery, 13
Frederick and Washington counties to any deed executed as a mere conduit or for 14
convenience in holding and passing title, known popularly as a straw deed or, as provided 15
in § 4–108 of this article, a deed making a direct grant in lieu of a straw deed, or to a deed 16
which is a supplementary instrument merely confirming, correcting, or modifying a 17
previously recorded deed, if there is no actual consideration paid or to be paid for the 18
execution of the supplementary instrument. 19
(3) Subsection (b) of this section does not apply in Baltimore City and Anne 20
Arundel, Baltimore, Carroll, Frederick, St. Mary’s, or Washington counties to any deed 21
transferring property to the county when the controller or treasurer of the county has 22
certified that the conveyance does not impair the security for any public taxes, assessments, 23
and charges due on the remaining property of the grantor. 24
(4) (i) Property may be transferred on the assessment books or records 25
in July, August, or September if instead of paying the taxes required under subsection (b)(1) 26
of this section on a property transfer by assumption, a lender or the attorney handling the 27
transfer of title files with the county treasurer, tax collector, or director of finance of the 28
county in which the property is assessed a statement that certifies that the lender 29
maintains a real estate tax escrow account. 30
(ii) Upon receipt of the statement required in subparagraph (i) of 31
this paragraph, the county treasurer, tax collector, or director of finance shall endorse on 32
the deed an appropriate certification and the endorsement shall be sufficient authority for 33
transfer on the assessment books. 34
(5) (I) [At] EXCEPT AS PROVIDED IN SUBPARAGRAPH (II) OF THIS 35
PARAGRAPH , AT the time of transfer of real property subject to a semiannual payment 36
schedule for the payment of property taxes, only those semiannual payments that are due 37
for the current taxable year under § 10–204.3 of the Tax – Property Article must be paid 38
prior to the transfer of the property. 39
SENATE BILL 769 7
(II) IN BALTIMORE CITY, THE SEMIANNUAL PAYME NTS THAT 1
ARE DUE FOR THE CURR ENT TAXABLE YEAR UND ER § 10–204.3 OF THE TAX – 2
PROPERTY ARTICLE ARE NOT REQUI RED TO BE P AID BEFORE THE TRANS FER OF 3
THE PROPERTY IF : 4
1. A. THE PROPERTY IS RESID ENTIAL REAL 5
PROPERTY THAT IS BEI NG TRANSFERRED FROM THE ESTATE OF A DECE DENT TO AN 6
HEIR OF THE DECEDENT ; AND 7
B. THE HEIR OF THE DECED ENT ENTERS INTO A 8
PAYMENT PLAN WITH TH E BALTIMORE CITY BUREAU OF REVENUE COLLECTIONS 9
TO PAY ALL PUBLIC TA XES, ASSESSMENTS , AND CHARGES CURRENTL Y DUE AND 10
OWED ON THE PROPERTY ; OR 11
2. THE RESIDENTIAL REAL PROPERTY IS BEING 12
TRANSFERRED TO BALTIMORE CITY IN ACCORDANCE WI TH § 10–106 OF THE 13
ESTATES AND TRUSTS ARTICLE. 14
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 15
October 1, 2023. 16
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
President of the Senate.
________________________________________________________________________________
Speaker of the House of Delegates.