Bulletin: MD2023002

Dear Associates:

This bulletin is a summary of legislation changes made by the 2023 Maryland General Assembly relating to real property.

All new laws listed below have an effective date of July 1, 2023:

HB 0021: Property Tax - Tax Sales - Notices and Payoff Amount for Redemption

This bill authorizes an owner of owner-occupied residential property – that has been sold at a tax sale and for which a complaint to foreclose the right of redemption has not yet been filed – to request, from the holder of the certificate of sale, the current payoff amount to redeem the property. The current mortgagee of the property and specified others are also authorized to request the current payoff amount. The authorization applies in jurisdictions other than Baltimore City (there is an existing, similar authorization applicable in the city, discussed under Current Law). The payoff amount provided by the holder of the certificate of sale must (1) include only those expenses incurred before the holder of the certificate of sale received the request for the payoff amount and (2) be deemed valid for a period of 30 days from the date the holder provides it. The bill also requires that an email address be included in the holder’s and the tax collector’s contact information provided in specified notices sent by the holder to the owner and specified others.

HB 0057: Property Tax – Tax Sales – Requirement to Sell

Except for property that has been transferred by a municipality or county to a land bank authority established under § 1–1403 of the Local Government Article, and except as provided under § 14–811 of this subtitle, the collector shall proceed to sell and shall sell under this subtitle, at the time required by local law [but in no case, except in Baltimore City, later than 2 years from the date the tax is in arrears], all property in the county in which the collector is elected or appointed on which the tax is in arrears.

All new laws listed below have an effective date of October 1, 2023:

Property Tax - Tax Sales – Redemption

Requiring a tax collector to make certain attempts to contact an owner of the property; a current Mortgagee or Assignee or a Servicer of a mortgage on the property; a current holder of a beneficial interest in a deed of trust recorded against the property; if the Plaintiff or holder of a certificate of sale fails to respond within 5 business days after the collectors attempt to make contact the collector may redeem the property without a satisfaction letter stating the expenses of the Plaintiff or the Holder of the Certificate of Sale have been paid.

SB 0792: Estates and Trusts - Registered Domestic Partnerships

Establishing requirements for the registration and termination of domestic partnerships with the register of wills; repealing provisions on legitimacy and illegitimacy of children and providing for the parentage of a child born or conceived by registered domestic partners; requiring the register of wills to recognize as domestic partnerships relationships established under the laws of other jurisdictions if the laws are substantially similar to the provisions of the Act; etc.

HB 0244: Estates and Trusts - Registers of Wills - Electronic Filing and Signatures

Requiring a register of wills to accept any document except an original will filed electronically through a system established by the register of wills; and prohibiting a register of wills from refusing to accept a document based on the manner in which it was signed.

SB 694: Department of Natural Resources' Real Property - Exchange With Private Real Property

Authorizing the State to exchange real property owned by the State for the use and benefit of the Department of Natural Resources with private real property if the private property is adjacent to the property owned by the state.

SB 027: Real Property - Sheriff's Sales - Procedures and Subordinate Interests

Establishing that a sheriff's sale of real property extinguishes subordinate liens on the land being sold; providing that certain provisions of the Act do not impair a lien on land affected by a judgment in favor of a local government for real property maintenance violations or nuisance condition violations that is indexed and recorded in accordance with the Maryland Rules; and authorizing the Judiciary to transfer up to $12,000,000 of a General Fund appropriation to a certain special fund on or before June 30, 2023.

SB 0335: Real Property - Unlawfully Restrictive Covenants - Modification by Counties or Municipalities

Authorizing a county or municipality to execute and record a restrictive covenant modification to an unlawfully restrictive covenant for a property within the boundaries of the county or municipality after providing persons with an ownership interest in the property with 30 days' written notice; and providing that persons with an ownership interest in property that is subject to an unlawfully restrictive covenant may decline action by a county or municipality to execute and record a restrictive covenant modification.

Maryland General and Limited Power of Attorney Act – Alterations

Altering the statutory form for a general power of attorney by including certain provisions informing the principal and agent of certain matters, granting general authority with respect to tangible personal property and trusts and estates, authorizing the principal to grant the agent certain specific powers relating to successor agents, compensation, gifts, or transfers and opening joint accounts and beneficiary designations, and clarifying the force and effect of the form; etc.

HB0092: Ground Leases - Collection of Rent, Interest, Fees, and Other Expenses - Registration Requirements

Establishing that ground leases or amendments that are not posted on the State Department of Assessments and Taxation's website are not considered registered or amended; prohibiting a ground lease holder from collecting or attempting to collect rent, late fees, interest, collection costs, and other expenses related to a ground lease unless the ground lease is registered with the Department; etc.

HB0093: Residential Ground Leases - Redemption and Extinguishment - Requirements

Repealing the prohibition against a tenant who is seeking to redeem or extinguish ground rent providing satisfactory documentation of the ground rent lease and notice given to the ground rent holder and payment of the $20 dollar fee to the State Department of Assessments and Taxation earlier than 90 days after an application for redemption or extinguishment has been posted on the Department's website.

HB0118: Ground Leases – Notices and Billing – Forms and Requirements

Prohibiting a leasehold tenant of an unregistered ground lease from being required to hold more than 3 years of ground rent in escrow; requiring a ground lease holder to mail notices and bills to a leasehold tenant in a certain manner under certain circumstances; requiring the State Department of Assessments and Taxation to make available on its website the form a ground lease holder must use to provide a leasehold tenant bills or notices; etc.

All new laws listed below have an effective date of January 1, 2024:

HB0235: Tax Sales - Owner-Occupied Property - Foreclosure, Notice, and Reimbursement of Expenses

Prohibiting in all counties, other than Baltimore City, a holder of a certificate of sale from filing a complaint to foreclose the right of redemption for owner-occupied residential property until 9 months from the date of sale; prohibiting in all counties, other than Baltimore City, a notice from being sent to persons with an interest in owner-occupied residential property sold at tax sale until 7 months after the date of sale; etc.

Effective Date July 1, 2024:

Recordation Tax - Indemnity Mortgage Exemption - Threshold Amount
Altering the threshold amount for certain indemnity mortgage transactions that are exempt from the recordation tax from less than $3,000,000 to less than $12,500,000.

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