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.
*hb0853*
HOUSE BILL 853
N1 4lr0988
By: Delegates Allen, Stewart, Boafo, Grossman, J. Lewis, J. Long, and Ruth
Introduced and read first time: February 2, 2024
Assigned to: Environment and Transportation
Committee Report: Favorable
House action: Adopted
Read second time: February 26, 2024
CHAPTER ______
AN ACT concerning 1
Residential Leases – Late Payment Penalties – Calculation 2
FOR the purpose of altering a prohibition concerning the maximum penalty for the late 3
payment of rent that a landlord may charge in a residential lease to prohibit a 4
penalty in excess of a certain percentage of the amount of the unpaid rent rather 5
than of the amount due; and generally relating to residential leases and penalties 6
for the late payment of rent. 7
BY repealing and reenacting, without amendments, 8
Article – Real Property 9
Section 8–201 and 8–208(g) 10
Annotated Code of Maryland 11
(2023 Replacement Volume) 12
BY repealing and reenacting, with amendments, 13
Article – Real Property 14
Section 8–208(d)(3) 15
Annotated Code of Maryland 16
(2023 Replacement Volume) 17
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 18
That the Laws of Maryland read as follows: 19
Article – Real Property 20
2 HOUSE BILL 853
8–201. 1
(a) This subtitle is applicable only to residential leases unless otherwise provided. 2
(b) This subtitle does not apply to a tenancy arising after the sale of 3
owner–occupied residential property where the seller and purchaser agree that the seller 4
may remain in possession of the property for a period of not more than 60 days after the 5
settlement. 6
8–208. 7
(d) A landlord may not use a lease or form of lease containing any provision that: 8
(3) (i) Provides for a penalty for the late payment of rent in excess of 9
5% of the amount of UNPAID rent due for the rental period for which the payment was 10
delinquent; or 11
(ii) In the case of leases under which the rent is paid in weekly rental 12
installments, provides for a late penalty of more than $3 per week or a total of no more than 13
$12 per month; 14
(g) (1) Any lease provision which is prohibited by terms of this section shall be 15
unenforceable by the landlord. 16
(2) If the landlord includes in any lease a provision prohibited by this 17
section or made unenforceable by § 8–105 of this title or § 8–203 of this subtitle, at any time 18
subsequent to July 1, 1975, and tenders a lease containing such a provision or attempts to 19
enforce or makes known to the tenant an intent to enforce any such provision, the tenant 20
may recover any actual damages incurred as a reason thereof, including reasonable 21
attorney’s fees. 22
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 23
October 1, 2024. 24
Approved:
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Governor.
________________________________________________________________________________
Speaker of the House of Delegates.
________________________________________________________________________________
President of the Senate.