Maryland Real Property Section 8-402.3

Article - Real Property

§ 8-402.3.

      (a)      In this section, "ground rent" means a residential lease or sublease in effect on or after October 1, 2003, that has an initial term of 99 years renewable forever and creates a leasehold estate subject to the payment of semiannual installments of an annual lease amount.

      (b)      (1)      A holder of a ground rent that is at least 6 months in arrears is entitled to reimbursement for actual expenses not exceeding $500 incurred in the collection of that past due ground rent and in complying with the notice requirements under § 8-402.2(a) of this subtitle, including:

                  (i)      Title abstract and examination fees;

                  (ii)      Judgment report fees;

                  (iii)      Photocopying and postage fees; and

                  (iv)      Attorney's fees.

            (2)      Upon filing an action for ejectment, the plaintiff or holder of a ground rent is entitled to reimbursement for reasonable expenses incurred in the preparation and filing of the ejectment action, including:

                  (i)      Filing fees and court costs;

                  (ii)      Expenses incurred in the service of process or otherwise providing notice;

                  (iii)      Title abstract and examination fees not included under paragraph (1) of this subsection, not exceeding $300;

                  (iv)      Reasonable attorney's fees not exceeding $700; and

                  (v)      Taxes, including interest and penalties, that have been paid by the plaintiff or holder of a ground rent.

      (c)      Except as provided in subsection (b) of this section or in § 8-402.2(c) of this subtitle, the plaintiff or holder of a ground rent is not entitled to reimbursement for any other expenses incurred in the collection of a ground rent.

      (d)      (1)      The holder of a ground rent may not be reimbursed for expenses under subsection (b) of this section unless the holder sends the tenant as identified in the records of the State Department of Assessments and Taxation written notice at least 30 days before taking any action in accordance with § 8-402.2(a) of this subtitle and § 14-108.1 of this article.

            (2)      The notice shall be in 14 point, bold font, and contain the following:

                  (i)      The amount of the past due ground rent;

                  (ii)      A statement that unless the past due ground rent is paid within 30 days, further action will be taken in accordance with § 8-402.2(a) of this subtitle and § 14-108.1 of this article and the tenant will be liable for the expenses and fees incurred in connection with the collection of the past due ground rent as provided in this section.

            (3)      The holder of the ground rent shall:

                  (i)      Mail the notice by first class mail to the tenant's last known address as shown in the records of the State Department of Assessments and Taxation; and

                  (ii)      Obtain a certificate of mailing from the United States Postal Service.



This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.