Maryland Senate Bill SB901

Maryland 2024 Regular Session

• Introduced: 2/2/24
• Refer: 2/2/24

Caption

Ground Leases – Application for Redemption – Procedures

Impact

The provisions of SB901 will significantly affect real estate law in Maryland, particularly relevant to tenants under long term ground leases. By allowing leasehold tenants greater ability to redeem these leases, the bill is expected to empower tenants and alter landlord-tenant dynamics. The changes may make the market more favorable for tenants, as they now have more straightforward access to redeem their rights to property previously encumbered by long-term ground leases. Additionally, it includes a provision allowing the City of Baltimore to acquire certain properties under ground leases, which may influence urban property management strategies.

Summary

Senate Bill 901, also known as the Ground Leases – Application for Redemption – Procedures Act, aims to modify existing laws concerning the redemption of ground leases in Maryland. The bill outlines new procedures that leasehold tenants must follow to apply for the redemption of ground leases, thereby providing clearer regulations regarding the process. It specifies that ground leases lengthening beyond 15 years are redeemable at the tenant's option, requiring a notice period before redemption to the ground lease holder, thus enhancing tenant rights in lease agreements.

Contention

However, discussions surrounding SB901 may reveal points of contention, particularly from landlords who could view this as an infringement on their property rights. The amendment requires tenants to provide advance notice and follow specific procedures, which seeks to balance tenant empowerment with the rights of landlords. While some stakeholders advocate for stronger protections for tenants, others argue that such legislative efforts could lead to complications in property management and decreased investment incentives for landlords.