# Real Property (GRP) ## Title 12. Eminent Domain ### Subtitle 1. General Rules #### Section 12-101 (a) All proceedings for the acquisition of private property for public use by condemnation are governed by the provisions of this title and of Title 12, Chapter 200 of the Maryland Rules. (b) Nothing in this title prevents this State or any of its instrumentalities or political subdivisions, acting under statute or ordinance passed pursuant to Article III of the Maryland Constitution, from taking private property for public use immediately on making the required payment and giving any required security. (c) This title does not prevent the State Roads Commission from using the procedures set forth in Title 8, Subtitle 3 of the Transportation Article, or prevent Baltimore City from using the procedure set forth in the Charter of Baltimore City and Sec.Sec. 21-12 through 21-22, inclusive, of the Public Local Laws of Baltimore City. (d) Notwithstanding any other law, from June 1, 2014, to May 30, 2016, both inclusive, the State or any of its instrumentalities or political subdivisions may not acquire a mortgage or deed of trust by condemnation. #### Section 12-102 In this title, property is deemed to be taken: (1) If the plaintiff lawfully is authorized to take the property before trial pursuant to Article III of the Maryland Constitution, or any amendment to it, and the required payment has been made to the defendant or into court, any required security has been given, and the plaintiff has taken possession of the property and actually and lawfully appropriated it to the public purposes of the plaintiff. (2) In every other case, if the plaintiff pays the judgment and costs pursuant to Title 12, Chapter 200 of the Maryland Rules. #### Section 12-103 Unless an applicable statute specifies a different time as of which the value is to be determined, the value of the property sought to be condemned and of any adjacent property of the defendant claimed to be affected by the taking shall be determined as of the date of the taking, if taking has occurred, or as of the date of trial, if taking has not occurred. #### Section 12-104 (a) The damages to be awarded for the taking of land is its fair market value. (b) The damages to be awarded where land, or any part of it, is taken is the fair market value of the part taken, but not less than the actual value of the part taken plus any severance or resulting damages to the remaining land by reason of the taking and of future use by the plaintiff of the part taken. The severance or resulting damages shall be diminished to the extent of the value of the special (particular) benefits to the remainder arising from the plaintiff's future use of the part taken. (c) For the purpose of determining the extent of the taking and the valuation of the tenant's interest in a condemnation proceeding, no improvement or installation which otherwise would be deemed part of the land shall be deemed personal property so as to be excluded from the taking solely because of the private right of a tenant, as against the owner of any other interest in the land sought to be condemned, to remove the improvement or installation, unless the tenant exercises his right to remove it prior to the date when his answer is due, or states in his answer his election to exercise this right. (d) The damages to be awarded for the taking of a structure, such as a church or place of religious worship, held in fee simple, or under a lease renewable forever, by or for the benefit of a religious body and regularly used by the religious body, are the cost of reproducing or replacing the improvements, adjusted for physical and functional depreciation, to which shall be added the fair market value of the land. (e) (1) The damages to be awarded for the taking of all land owned and designated by a public body as park land, open space, or recreation area is the fair market value as of the valuation date, of other land substantially similar in size and character and of comparable quality for park, open space, or recreational purposes for the community which made use of the land to be taken. No damages may be awarded unless other land is acquired for park, open space, or recreational purposes. No awarded damages may be less than the fair market value of the land to be taken. (2) The damages to be awarded for the taking of part of the park land, open space, or recreation area is the fair market value of the part taken, but not less than the actual value of the replacement land as defined in paragraph (1) of this subsection plus any severance or resulting damages to the remaining land by reason of the taking and of the future use by the plaintiff of the part taken. The severance or resulting damages are to be diminished to the extent of the value of the special (particular) benefits to the remainder arising from the plaintiff's future use of the land taken. (3) Where the land, or any part of it, taken pursuant to this subsection contains improvements, the damages to be awarded, in addition to that provided for in paragraphs (1) and (2) of this subsection, shall include the reasonable cost as of the valuation date of providing new improvements of substantially the same size, comparable character, and for the same purpose as those taken. (f) The damages to be awarded for the taking of land or an interest in land over which an easement in gross or other right to restrict its use has been granted pursuant to Sec. 2-504 of the Agriculture Article shall be as provided for in this subsection and Sec. 2-515 of the Agriculture Article: (1) The damages to be awarded for the taking of an entire tract is its fair market value after deducting the lesser of (a) the value of the easement granted, or (b) the excess of the aggregate amount of the property taxes that would have been due on the property if the easement had not been granted above the aggregate amount of property taxes actually paid on the property since the easement was granted. (2) The damages to be awarded where part of a tract of land is taken is the fair market value of the part taken less the deduction computed as described in paragraph (1) of this subsection, but not less than the actual value of the part taken less the deduction computed as described in paragraph (1) of this subsection, plus any severance or resulting damages to the remaining land by reason of the taking and of future use by the plaintiff of the part taken. (g) If any easement in gross or other right to restrict use of land or any interest in land has been donated to the Maryland Historical Trust or the Maryland Environmental Trust, damages shall be awarded in any condemnation proceedings under this title to the fee owner and leasehold owner, as their interests may appear, and shall be the fair market value of the land or interest in it, computed as though the easement or other right did not exist. #### Section 12-105 (a) In this section, the phrase "the effective date of legislative authority for the acquisition of the property" means, with respect to a condemnor vested with continuing power of condemnation, the date of specific administrative determination to acquire the property. (b) The fair market value of property in a condemnation proceeding is the price as of the valuation date for the highest and best use of the property which a vendor, willing but not obligated to sell, would accept for the property, and which a purchaser, willing but not obligated to buy, would pay, excluding any increment in value proximately caused by the public project for which the property condemned is needed. In addition, fair market value includes any amount by which the price reflects a diminution in value occurring between the effective date of legislative authority for the acquisition of the property and the date of actual taking if the trier of facts finds that the diminution in value was proximately caused by the public project for which the property condemned is needed, or by announcements or acts of the plaintiff or its officials concerning the public project, and was beyond the reasonable control of the property owner. (c) The defendant property owner may elect to present as evidence in a condemnation proceeding, the assessed value of the property, as determined by the Department of Assessments and Taxation, if the assessed value is greater than the appraised value placed on the property by the condemning authority. (d) If property is ever acquired by the exercise of the power of eminent domain, the fair market value of the property is not affected by the property having been qualified for a tax credit under Sec. 9-208 of the Tax - Property Article. However, if the grantee of an easement purchased the easement for monetary consideration other than, or in addition to, the tax credit under Sec. 9-208 of the Tax - Property Article, then the condemnation award shall be reduced by an amount equal to the additional consideration. #### Section 12-105.1 (a) Notwithstanding any other provision of law, the State or any of its instrumentalities or political subdivisions shall file an action to acquire private property for public use by condemnation within 4 years of the date of the specific administrative or legislative authorization to acquire the property. (b) If an action for condemnation is not filed within 4 years of the date described in subsection (a) of this section, the State or any of its instrumentalities or political subdivisions may not proceed with condemnation until it first obtains a new authorization to acquire the property. #### Section 12-106 (a) The plaintiff shall pay all the costs in the trial court. (b) The costs in a condemnation proceeding include: (1) The usual per diem to the jurors; (2) The cost of transporting the trier of fact to view the property; (3) The cost of meals for the jury if the court so orders; (4) The cost of recording the inquisition among the land records and of all documentary stamps which may be required in the transfer of the property to the plaintiff; and (5) An allowance to the defendant, as fixed by the court, for the reasonable legal, appraisal, and engineering fees actually incurred by the defendant because of the condemnation proceeding, if the judgment is for the defendant on the right to condemn. (c) In proceeding under Article III of the Maryland Constitution, or any amendment to it, the plaintiff shall pay interest at the rate of 6 percent per annum on any difference between the amount of money initially paid into court for the use of the defendant and the jury award as stated in the inquisition, from the date the money was paid into court to the date of the inquisition or final judgment, whichever date is later. (d) On taking possession, acquiring the right to take possession, or the actual transfer of title to the plaintiff, whichever occurs first, the plaintiff immediately shall file with the supervisor of assessments for the county involved a written notification or record setting forth in sufficient detail the area of the land and a description of any improvement being acquired. If the plaintiff is an agency or instrumentality of the State, the supervisor of assessments, on filing of the notification or record, immediately shall remove the property from the tax rolls. #### Section 12-107 (a) Any party to a condemnation case may appeal from a final judgment or determination in the manner prescribed by the Maryland Rules. (b) If the final decision on appeal is that the plaintiff is not entitled to condemn the property, a reasonable counsel fee fixed by the trial court shall be awarded to counsel for the defendant and charged against the plaintiff together with the other costs of the case. (c) Costs on appeal shall be paid as directed by the appellate court. (d) (1) If the plaintiff desires possession pending appeal, it may make payment of the award pursuant to Title 12, Chapter 200 of the Maryland Rules. In addition, the plaintiff shall file with the clerk of the court a bond to the State for the penalty the court prescribes. (2) The bond shall be conditioned that if the judgment is reversed, the plaintiff shall pay to the defendant appealing, all damages the plaintiff caused the defendant by taking possession and using the property before the final determination of the appeal. The bond shall be executed by the plaintiff together with another surety approved by the court. (3) On the payment and filing of the bond, the plaintiff immediately may take possession of the property of the defendant appealing. (4) Except as provided in paragraph (5) of this subsection, if, on appeal, the judgment is affirmed, the bond is discharged. If, on appeal, the judgment is reversed on the right of the plaintiff to condemn, the plaintiff immediately shall surrender possession of the property of the defendant and the surety shall be liable to the defendant for all damages which have been occasioned to the defendant by the plaintiff in taking possession and using the property before final determination of the appeal. (5) If the plaintiff is the State or any of its subdivisions or instrumentalities, a bond is not required. #### Section 12-108 (a) On payment of the judgment and costs by the plaintiff pursuant to the provisions of Title 12, Chapter 200 of the Maryland Rules, the plaintiff immediately shall become vested with the title, estate, or interest of the defendant in the condemned property. (b) The title acquired in a condemnation proceeding shall be an absolute or fee-simple title including the right, title, and interest of each of the defendants in the proceeding whose property has been condemned unless a different title is specified in the inquisition. #### Section 12-109 (a) The exclusive method of abandoning a proceeding for condemnation shall be by the plaintiff's filing, in the proceeding, a written election to abandon. A copy of the election shall be served as provided in the Maryland Rules, on each defendant who has been personally subjected to the jurisdiction of the court. Every other defendant shall be notified of the election by service of a copy or by any other means the court directs. (b) The filing of the election has the effect of: (1) Reducing any money judgment entered in the proceeding to a judgment for costs only, and the clerk immediately shall make the entry on his docket and judgment record to reflect this; and (2) Annulling any inquisition returned in the proceeding, and any judgment entered in it, to the extent that the inquisition or judgment affects the title of any defendant to the property which was sought to be condemned. (c) On filing the election to abandon, the clerk of any court where the inquisition has been recorded among the land records immediately shall make a notation on the recorded copy of the inquisition that the proceeding has been abandoned. (d) No condemnation proceeding may be abandoned: (1) After taking has occurred; (2) More than 120 days after the entry of final judgment, unless an appeal is taken; or (3) If an appeal is taken from a final judgment, more than 120 days after the receipt by the clerk of the lower court of a mandate of the Supreme Court of Maryland or the Appellate Court of Maryland evidencing the dismissal of the appeal, the affirmance of the judgment, the entry of judgment pursuant to the Maryland Rules, or the modification of the judgment without the award of a new trial. For the purposes of this section, an appeal stricken out pursuant to the Maryland Rules, or voluntarily abandoned, is deemed not to have been taken. However, if the appeal so stricken out or voluntarily abandoned was taken by the defendant, the plaintiff may abandon the proceeding within 120 days after the appeal is abandoned or stricken out, provided taking has not occurred. (e) On abandonment of a condemnation proceeding, the defendant is entitled to recover from the plaintiff the reasonable legal, appraisal, and engineering fees actually incurred by the defendant because of the condemnation proceeding. If the parties agree on the proper amount to be recovered by the defendant on account of these fees, they shall file with the clerk of the court a writing evidencing their agreement. If the parties cannot agree on the proper amount to be recovered by the defendant on account of the fees, the court, on motion of either party, shall determine the proper amount. The clerk shall enter the amount agreed on or determined by the court as a part of the costs. #### Section 12-110 (a) If the condemnee or his predecessor in title has paid taxes, the condemnee is entitled to receive from the condemnor, in addition to the damages awarded for the premises taken, an amount of money which bears the same ratio to the entire amount of taxes on the premises taken as the part of the taxable year remaining on the date of taking bears to the entire taxable year. (b) (1) If taxes have not been paid and all the property covered by an assessment is condemned, the condemnor may deduct from the damages awarded to the condemnee an amount of money which bears the same ratio to the entire amount of the taxes on the condemned property as the part of the taxable year which has expired on the date of taking bears to the entire taxable year. (2) If the taxes have not been paid and a part of the property covered by an assessment is taken, the condemnor may deduct from the damages awarded to the condemnee an amount of money equal to the taxes due and payable on the portion of the property covered by the assessment which is not taken plus an amount of money which bears the same ratio to the amount of the taxes on the property taken as the part of the taxable year which has expired on the date of taking bears to the entire taxable year. (c) The amount of the adjustment for taxes under this section shall be as the condemnor and condemnee agree, or if they are unable to agree, the amount shall be determined on petition of either party by a judge of the court in which the condemnation proceeding was filed, or, if no proceeding has been filed, by a judge of a court of law in a county where any part of the land is located. (d) After taxes have been adjusted as provided in subsection (b) of this section, the condemnor shall pay the entire tax bill on the property taken as well as any property remaining to the condemnee, less any allowable readjustments or abatements, within 30 days from the date the adjustment is made. If the condemnor does not pay the taxes within this time, the condemnee may pay them and recover the amount so paid from the condemnor, together with interest from the date of payment, as a common debt. (e) In addition to any other meaning of the word in this section, "taxes" also includes all annual benefit charges assessed by the Washington Suburban Sanitary Commission or other special taxing district which are collected as taxes. They shall be apportioned over the entire period of the assessment and paid as set forth above for other taxes. #### Section 12-111 (a) Civil engineers, land surveyors, real estate appraisers, and their assistants acting on behalf of the State or of any of its instrumentalities or any body politic or corporate having the power of eminent domain after every real and bona fide effort to notify the owner or occupant in writing with respect to the proposed entry may: (1) Enter on any private land to make surveys, run lines or levels, or obtain information relating to the acquisition or future public use of the property or for any governmental report, undertaking, or improvement; (2) Set stakes, markers, monuments, or other suitable landmarks or reference points where necessary; and (3) Enter on any private land and perform any function necessary to appraise the property. (b) If any civil engineer, surveyor, real estate appraiser, or any of their assistants is refused permission to enter or remain on any private land for the purposes set out in subsection (a) of this section, the person, the State, its instrumentality, or the body politic or corporate on whose behalf the person is acting may apply to a law court of the county where the property, or any part of it, is located for an order directing that the person be permitted to enter on and remain on the land to the extent necessary to carry out the purposes authorized by this section. (c) If a civil engineer, surveyor, real estate appraiser, or any of their assistants enters on any private land under the authority of this section or any court order passed pursuant to it, and damages or destroys any land or personal property on it, the owner of the property has a cause of action for damages against the civil engineer, surveyor, real estate appraiser, or assistant and against the State, its instrumentality, or the body politic or corporate on whose behalf the person inflicting the damage was acting. (d) Any landowner or other person who willfully obliterates, damages, or removes any stake, marker, monument, or other landmark set by any civil engineer, surveyor, or real estate appraiser or any of their assistants acting pursuant to this section, except if the stake, marker, monument, or other landmark interferes with the proper use of the property, is guilty of a misdemeanor and on conviction shall be fined not more than $500. (e) Any person who has knowledge of an order issued pursuant to subsection (b) and who obstructs any civil engineer, surveyor, real estate appraiser, or any of their assistants acting under the authority of the order may be punished as for contempt of court. (f) In Anne Arundel County, Montgomery County, or Baltimore City, an agent or employee, or one or more assistants of the jurisdiction, after real and bona fide effort to notify the occupant or the owner, if the land is unoccupied or if the occupant is not the owner, may enter on any private land to make test borings and soil tests and obtain information related to such tests for the purpose of determining the possibility of public use of the property. If an agent, employee, or assistant is refused permission to enter or remain on any private land for the purposes set out in this subsection, Anne Arundel County, Montgomery County, or Baltimore City may apply to a law court of the jurisdiction where the property or any part of it is located for an order directing that its agent, employee, or assistant be permitted to enter and remain on the land to the extent necessary to carry out the purposes authorized by this subsection. The court may require that the applying jurisdiction post a bond in an amount sufficient to reimburse any person for damages reasonably estimated to be caused by test borings, soil tests, and related activities. If any person enters on any private land under the authority of this section or of any court order passed pursuant to it and damages or destroys any land or personal property on it, the owner of the property has a cause of action for damages against the jurisdiction that authorized the entrance. Any person who knows of an order issued under this subsection and who obstructs any agent, employee, or assistant acting under the authority of the order may be punished for contempt of court. (g) (1) The State Highway Administration, the Maryland Transit Administration, and the agents, employees, and consultants of the State Highway Administration and the Maryland Transit Administration may enter upon private property to conduct environmental and engineering studies, including soil boring and excavation, necessary to determine the suitability of the property for use by the administration entering the property. Entry onto private property for these purposes shall not be undertaken without prior consent of the property owner. If, after real and bona fide effort, the consent of the property owner cannot be secured, the administration seeking entry may apply to a law or equity court where the property or any part of it is located for an order directing that entry be permitted. "Bona fide effort" shall include either 30 days advance notice in writing by certified mail return receipt requested to the last known address of the property owner or posting notice on the property not less than 30 days in advance, and such other requirements as the court may deem appropriate. The administration entering the property, when removing, displacing, boring, or excavating soil under the provisions of this section, shall replace the topsoil in a manner which will approach the level of compaction and contour as when removed. An administration entering private property under the authority of this subsection shall reimburse the landowner or lessee who is farming the property for agricultural products destroyed or damaged by the administration's agents, employees, or consultants and shall be responsible for any other damages that may be incurred as a result of such entry on private property. (2) When the State Highway Administration, the Maryland Transit Administration, or an agent, an employee, or a consultant of the State Highway Administration or the Maryland Transit Administration gives notice to a property owner or posts notice to property in accordance with paragraph (1) of this subsection, the State Highway Administration or the Maryland Transit Administration shall send a copy of the notice to the General Assembly members who represent the legislative district in which the property is located. #### Section 12-112 (a) If land is acquired, in whole or in part, by condemnation or by purchase in lieu of condemnation, any person at whose expense any personal property, dead body, grave marker, or monument must be removed as a reasonably necessary consequence of condemnation, or purchase in lieu of condemnation, is entitled to receive from the condemnor or purchaser a pecuniary allowance for the reasonable costs of removing and placing the item or body in another location within a reasonable distance. In order to receive the pecuniary allowance the person shall submit his claim to the condemnor or purchaser within six months after the removal of the personal property, dead body, grave marker, or monument with respect to which he claims pecuniary allowance. The allowance does not include any compensation for loss of profit, goodwill, or for the acquisition of another location. (b) If personal property is removed from leased premises from which the reversioner could have required its removal on the termination of the lease, the allowance provided for in this section shall be diminished by one fifth for each year by which five years exceeds the number of full years remaining in the term at the time when the premises were acquired. Any option to renew or extend the lease shall be treated as having been exercised, and the term shall be deemed to include the renewal term or extension. The adjustment provided by this subsection may not be used to reduce the allowance provided for in this section below. (c) If personal property is removed, the allowance provided for in this section may not exceed its fair market value. Nothing in this subsection requires a condemnor to obtain an expert or detailed appraisal of any personal property before allowing or paying moving costs. (d) If any personal property, dead body, grave marker, or monument is removed to another location at an unreasonable distance, the allowance provided for in this section is not totally defeated, but no compensation is due for the additional costs resulting from the unreasonable distance of the new location. (e) No person is entitled to any allowance for the costs of removal and relocation of personal property unless the personal property has been used by him at its original location and is to be used by him at its new location. (f) The amount of the allowance for the costs of removal and relocation shall be as the condemnor or purchaser and the person entitled agree. If they are unable to agree, the amount shall be determined, on petition of either party filed after removal and relocation have been effected, by the court in which the condemnation proceedings were filed. If no condemnation proceeding has been filed, a law court of the county where any part of the premises is located shall determine the amount, not to exceed the actual moving costs. (g) No petition may be filed under this section except by the condemnor or purchaser, unless the person entitled to the removal allowance gives written notice to the condemnor or purchaser at least ten days prior to the date of removal, stating the date of intended removal, the identification of the items to be removed, and the place to which they are to be relocated. In addition, he shall give the condemnor or purchaser, on request, a reasonable opportunity to inspect any personal property, grave marker, monument, or burial site that may be involved. (h) Every petition shall be filed within one year after the removal of the personal property, dead body, grave marker, or monument with respect to which it claims pecuniary allowance. (i) Nothing in this section may be construed to place a limit on the amount of compensation that a condemnor may allow for moving costs in cases where, under applicable federal law or rule or regulation, compensation may be paid wholly or partly out of federal funds or will be reimbursed wholly or partly to the condemnor out of federal funds. (j) Notwithstanding any provision of this section, in Baltimore City, where federal laws and rules and regulations authorize benefits for any displacee from public improvement projects wholly or partially funded by federal funds, a condemnor may do any act necessary to comply with the terms, conditions, and provisions of federal law and rule and regulation in order to obtain the full benefit under them for any condemnor and displacee from the projects in Baltimore City. This subsection applies to existing acts of Congress authorizing benefits for or to displacees from public improvement projects receiving federal funds, subsequent acts of Congress of like character, and any existing or subsequently adopted rules and regulations issued in connection with them. ### Subtitle 2. Relocation and Assistance #### Section 12-201 (a) In this subtitle the following words have the meanings indicated unless otherwise apparent from context. (b) "Appraisal" means a written statement independently and impartially prepared by a qualified appraiser setting forth an opinion of defined value of an adequately described property as of a specific date, supported by the presentation and analysis of relevant market information. (c) "Business" means any lawful activity, except a farm operation, conducted primarily: (1) For the purchase, sale, lease, and rental of personal property and of real property, and for the manufacture, processing, or marketing of products, commodities, or any other personal property; (2) For the sale of services to the public; or (3) By a nonprofit organization. (d) "Comparable replacement dwelling" means any dwelling that is: (1) Decent, safe, and sanitary; (2) Adequate in size to accommodate the occupants; (3) Within the financial means of the displaced person; (4) Functionally equivalent; (5) In an area not subject to unreasonable adverse environmental conditions; (6) In a location generally not less desirable than the location of the displaced person's dwelling with respect to public utilities, facilities, services, and the displaced person's place of employment; and (7) Currently available on the private market. (e) (1) "Displaced person" means: (i) Any person who moves from real property, or moves his personal property from real property: (1) As a direct result of a written notice of intent to acquire or the acquisition of such real property in whole or in part by a displacing agency; or (2) On which that person is a residential tenant or conducts a small business, a farm operation, or a nonprofit organization, in any case in which the head of the displacing agency determines that displacement is permanent, as a direct result of rehabilitation, demolition, or other displacing activity as the lead agency may prescribe, undertaken by a displacing agency; and (ii) Solely for the purposes of Sec.Sec. 12-205(a) and (b) and 12-206 of this subtitle, any person who moves from real property, or moves his personal property from real property: (1) As a direct result of a written notice of intent to acquire or the acquisition of other real property, in whole or in part, on which such person conducts a business or farm operation, by a displacing agency; or (2) As a direct result of rehabilitation, demolition, or other displacing activity as the lead agency may prescribe, of other real property on which such person conducts a business or a farm operation in any case in which the head of the displacing agency determines that displacement is permanent, by a displacing agency. (2) "Displaced person" does not include: (i) Except to the extent that this exclusion conflicts with federal financial participation requirements, any person who, on the open market, without threat of condemnation, sells his real property to a displacing agency; (ii) Unlawful occupants, or anyone occupying such dwelling for the purpose of obtaining assistance under this subtitle; or (iii) A person who leases from the displacing agency after the displacing agency takes title to the real property, or any person other than a person who was an occupant of such property at the time it was acquired who occupies the property on a rental basis for a short term or period subject to termination when the property is needed for the program or project. (f) "Displacing agency" means any public or private agency or person carrying out: (1) A program or project with federal financial assistance; (2) A public works program or project with State financial assistance; or (3) Acquisition by eminent domain or by negotiation. (g) "Farm operation" means any activity conducted solely or primarily for the production of one or more agricultural products or commodities, including timber for sale or home use, and customarily producing these products or commodities in sufficient quantity to be capable of contributing materially to the operator's support. (h) "Federal financial assistance" means a grant, loan, or contribution provided by the United States to the State or any of its political subdivisions, agencies, or any person, except any federal guarantee or insurance, or any interest reduction payment to an individual in connection with the purchase and occupancy of a residence by that individual, or any federal income tax credit or incentive, or any other tax advantage or interest rate advantage in connection with the issuance of bonds, the income on which is exempt from federal income tax. (i) "Lead agency" means the United States Department of Transportation. (j) "Mortgage" means the class of liens commonly given to secure advances on, or the unpaid purchase price of real property together with any credit instrument secured by the real property. (k) "Person" means an individual, receiver, trustee, guardian, executor, administrator, fiduciary, or representative of any kind, or any partnership, firm, or association, public or private corporation, a nonprofit organization, or any other entity not defined as a public agency. (l) "Private agency" means any public or private utility company, railroad, person, or other organization having the right to acquire real property for a public purpose with federal financial assistance or through the use of eminent domain or by negotiation. (m) "Public agency" means the State, a political subdivision, or any of their agencies, boards, or commissions having the right to acquire real property for public purposes with federal financial assistance or through the use of eminent domain or by negotiation. The term does not include a public agency if acquiring real property for Program Open Space or any political subdivision, other than Baltimore City, Baltimore, Anne Arundel, and Montgomery counties, the Board of Education of Montgomery County, the Board of Trustees of Montgomery College or any board or agency of any of them, or any agency, board, or commission of the subdivision when acquiring real property for a public purpose for which relocation assistance is not required by federal law. (n) "Uneconomic remnant" means a parcel of real property in which the owner is left with an interest after the partial acquisition of the owner's property and which the displacing agency concerned has determined has little or no value or utility to the owner. #### Section 12-202 (a) (1) In addition to payment otherwise authorized, a displacing agency shall make an additional payment not in excess of $45,000 to any displaced person who is displaced from a dwelling actually owned and occupied by the displaced person for not less than 180 days prior to the initiation of negotiations for the acquisition of the real property. (2) (i) The displacing agency may exceed the monetary limit stated in paragraph (1) of this subsection on a case-by-case basis if it determines that comparable housing cannot otherwise be made available within the limit; or (ii) The displacing agency may use any other measures necessary to remedy the unavailability of comparable housing. (b) The additional payments shall include the following elements: (1) Any amount which when added to the acquisition cost of the dwelling acquired by the displacing agency, equals the reasonable cost of a comparable replacement dwelling as defined in Sec. 12-201(d) of this subtitle. (2) Any amount which will compensate the displaced person for any increased interest costs and other debt service costs which the person is required to pay for financing the acquisition of any comparable replacement dwelling. The amount shall be paid only if the dwelling acquired by the displacing agency was encumbered by a bona fide mortgage which was a valid lien on the dwelling for not less than 180 days prior to the initiation of negotiations for the acquisition of the dwelling. The method of calculation shall be determined by the lead agency. (3) Reasonable expenses incurred by the displaced person for evidence of title, recording fees, and other closing costs incident to the purchase of the replacement dwelling, but not including prepaid expenses. #### Section 12-203 Subject to the provisions of Sec. 8-309(h)(2) of the Transportation Article, the additional payment authorized by Sec. 12-202 of this subtitle shall be made only to a displaced person who purchases and occupies a replacement dwelling which is decent, safe, and sanitary, not later than the end of the one-year period beginning on: (1) The date on which he receives from the displacing agency final payment of all costs of the acquired dwelling; or (2) The date on which the displacing agency's obligation under Sec. 12-206(b)(3) of this subtitle is met, whichever is later, except that the displacing agency may extend such period for good cause. If such period is extended, the payment under this section shall be based on the costs of relocating the person to a comparable replacement dwelling within 1 year of such date. #### Section 12-204 (a) In addition to amounts otherwise authorized by this title and Title 8 of the Transportation Article, the displacing agency shall make a payment to or for any displaced person displaced from any dwelling and not eligible to receive a payment under Sec. 12-202 of this subtitle, if the dwelling actually and lawfully was occupied by the displaced person for not less than 90 days before the initiation of negotiations for acquisition of the dwelling or in any case in which displacement is not a direct result of acquisition, such other activity as the lead agency shall prescribe. (b) (1) (i) The payment shall be the amount necessary to enable the person to lease or rent for a period not to exceed 42 months, a comparable replacement dwelling, but not to exceed $10,500. (ii) At the discretion of the displacing agency, a payment under this subsection may be made in periodic installments. (iii) Computation of a payment under this subsection to a low income displaced person for a comparable replacement dwelling shall take into account such person's income. (2) (i) If the displacing agency determines that comparable housing cannot otherwise be made available within this limit, the monetary limit stated in paragraph (1) of this subsection may be exceeded on a case-by-case basis. (ii) The displacing agency may use any other measures necessary to remedy unavailability of comparable housing as prescribed by the lead agency. (c) (1) Any person eligible for a payment under subsection (a) of this section may elect to apply the payment to a down payment on, and other incidental expenses applicable to, the purchase of a decent, safe, and sanitary replacement dwelling. (2) At the discretion of the displacing agency, that person may be eligible under this subsection for the maximum payment allowed under subsection (a) of this section, except that, in the case of a displaced homeowner who has owned and occupied the displacement dwelling for at least 90 days but not more than 180 days immediately before the initiation of negotiations for the acquisition of the dwelling, the payment may not exceed the payment the person would otherwise have received under Sec. 12-202 of this subtitle had the person owned and occupied the displacement dwelling 180 days immediately before the initiation of the negotiations. #### Section 12-205 (a) Whenever a program or project undertaken by a displacing agency will result in the displacement of any person, the displacing agency shall make a payment to the displaced person, on proper application as approved by the displacing agency for: (1) Actual reasonable expenses in moving himself, his family, business, farm operation, or other personal property; (2) Actual direct loss of tangible personal property as a result of moving or discontinuing a business or farm operation, but not exceeding an amount equal to the reasonable expenses that would have been required to relocate the personal property, as determined by the agency; (3) Actual reasonable expenses in searching for a replacement business or farm; and (4) Actual reasonable expenses necessary to reestablish a displaced farm, nonprofit organization, or small business at its new site as determined by the displacing agency, but not to exceed $60,000. (b) Any displaced person eligible for payments under subsection (a) of this section, who is displaced from a dwelling and who elects to accept the payments authorized by this subsection in lieu of the payments authorized by subsection (a) of this section, may receive a moving expense allowance, determined according to a schedule established by the lead agency. (c) (1) Any displaced person eligible for payments under subsection (a) of this section who is displaced from the person's place of business or farm operation and who is eligible under criteria established by the lead agency may elect to accept the payment authorized by this subsection in lieu of the payment authorized by subsection (a) of this section. (2) Such payment shall consist of a fixed payment in an amount to be determined according to criteria established by the lead agency, except that such payment may not be less than $1,000 nor more than $60,000 or the amount provided under the federal Uniform Relocation Assistance Act, whichever is greater. (3) A person whose sole business at the displacement dwelling is the rental of such property to others shall not qualify for a payment under this subsection. #### Section 12-205.1 In any proceeding for the acquisition of private property for public use by condemnation in which land or any part of it is being used for a business or farm operation, a representative of the displacing agency shall contact the owner of the business or farm operation not less than 30 days before the filing of the action and negotiate in good faith regarding a plan under which the business or farm operation may be relocated. #### Section 12-206 (a) Whenever a program or project undertaken by a displacing agency or person will result in the displacement of any person, the displacing agency shall provide a relocation assistance advisory program for displaced persons which shall offer the services described in subsection (b) of this section. If the displacing agency determines that any person occupying property immediately adjacent to the real property acquired is caused substantial economic injury because of the acquisition, it may offer that person relocation advisory services under the program. (b) Each relocation assistance advisory program required by subsection (a) of this section includes those measures, facilities, or services necessary or appropriate in order to: (1) Determine any need of displaced persons for relocation assistance; (2) Provide current and continuing information on the availability, prices, and rentals, of comparable decent, safe, and sanitary sales and rental housing, and of suitable commercial properties and locations for displaced businesses and farm operations; (3) Assure that a person may not be required to move from a dwelling unless the person has had a reasonable opportunity to relocate to a comparable replacement dwelling as defined in Sec. 12-201(d) of this subtitle except in the case of: (i) A national emergency declared by the President of the United States; (ii) A major disaster declared by the Governor; or (iii) Any other emergency which requires permanent displacement from a dwelling because of substantial danger to the health or safety of a person; (4) Assist a person displaced from a business or farm operation in obtaining and becoming established in a suitable replacement location; (5) Supply information concerning federal and State housing programs, disaster loan programs, and other federal or State programs offering assistance to displaced persons; and (6) Provide other advisory services to displaced persons in order to minimize hardships on them in adjusting to relocation. (c) Programs or projects undertaken with State and federal financial assistance under this subtitle shall be planned in a manner that: (1) Recognizes, at an early stage in the planning of such programs or projects and before the commencement of any actions which will cause displacements, the problems associated with the displacement of individuals, families, businesses, and farm operations; and (2) Provides for the resolution of such problems in order to minimize adverse impacts on displaced persons and to expedite program or project advancement and completion. (d) The head of the displacing agency shall coordinate the relocation activities performed by that agency with other federal, State, or local governmental actions in the community which could affect the efficient and effective delivery of relocation assistance and related services. #### Section 12-207 (a) If a displacing agency acquires real property, it shall be guided to the greatest extent feasible by the policies set forth in this section. (b) The displacing agency shall make every reasonable effort to acquire expeditiously real property by negotiation. (c) (1) Real property shall be appraised before the initiation of negotiations, and the owner or his designated representative shall be given an opportunity to accompany the appraiser during his inspection of the property. (2) However, the lead agency may prescribe a procedure to waive the appraisal in cases involving the acquisition by sale or donation of property with a low fair market value. (d) (1) Before the initiation of negotiations for real property, the displacing agency concerned shall establish an amount which it believes to be just compensation and shall make a prompt offer to acquire the real property for the full amount so established. (2) This amount may not be less than the displacing agency's approved appraisal of the fair market value of the real property. (3) The displacing agency concerned shall provide the owner of the real property to be acquired with a written statement of, and summary of the basis for, the amount it established as just compensation. (4) If appropriate, the just compensation for the real property acquired and for damages to remaining real property shall be stated separately. (e) No owner may be required to surrender possession of real property before the displacing agency concerned pays the agreed purchase price, or deposits with the court in accordance with applicable law, for the benefit of the owner, an amount not less than the displacing agency's approved appraisal of the fair market value of the real property, or the amount of the award of compensation in the condemnation proceeding for the real property. (f) (1) The construction or development of a public improvement shall be so scheduled that, to the greatest extent feasible, no person lawfully occupying real property is required to move from a dwelling, assuming a replacement dwelling as required by Sec.Sec. 12-202 through 12-204 of this subtitle will be available, or to move his business or farm operation, without at least 90 days' written notice from the displacing agency concerned. (2) Except under conditions described in Sec. 12-206(b)(3)(i), (ii), and (iii) of this subtitle, the date by which the move is required may be given in a separate notice. (g) If the displacing agency permits an owner or tenant to occupy the real property acquired on a rental basis for a short term or for a period subject to termination by the displacing agency on short notice, the amount of rent required may not exceed the fair rental value of the real property to a short-term occupier. (h) The displacing agency may not advance the time of condemnation, defer negotiations or condemnation and the deposit of funds in court for the use of the owner, or take any other action coercive in nature, in order to compel an agreement on the price to be paid for the real property. (i) If any interest in real property is to be acquired by exercise of the power of eminent domain, the displacing agency concerned shall institute a formal condemnation proceeding. No displacing agency or person intentionally may make it necessary for an owner to institute a legal proceeding to prove the fact of the taking of his real property. (j) If the acquisition of only part of the real property would leave its owner with an uneconomic remnant, the displacing agency concerned shall offer to acquire the entire real property. (k) After the person has been fully informed of his right to receive just compensation for that property, a person whose real property is being acquired in accordance with this subtitle may donate the property, any part thereof, any interest therein, or any compensation paid therefor to a State agency, as that person shall determine. #### Section 12-208 (a) Notwithstanding any other provision of law, if a displacing agency acquires any interest in real property, the displacing agency shall acquire at least an equal interest in all buildings, structures, or other improvements, located on the real property acquired which it requires to be removed from the real property or which it determines will be adversely affected by the use to which the real property will be put. (b) (1) For the purpose of determining just compensation to be paid for any building, structure, or other improvement required to be acquired by subsection (a) of this section, the building, structure, or other improvement shall be deemed a part of the real property to be acquired notwithstanding the right or obligation of a tenant, as against the owner of any other interest in the real property, to remove the building, structure, or improvement at the expiration of his term, and the fair market value which the building, structure, or improvement contributes to the fair market value of the real property to be acquired, or the fair market value of the building, structure, or improvement for removal from the real property, whichever is the greater, shall be paid to the tenant. (2) Payment under this subsection may not result in duplication of any payments otherwise authorized by law. No payment may be made unless the owner of the real property involved disclaims all interest in the improvements of the tenant. In consideration for any payment, the tenant shall assign, transfer, and release to the displacing agency all his right, title, and interest in and to the improvements. Nothing in this subsection may be construed to deprive the tenant of any rights to reject payment under this subsection and to obtain payment for the property interests in accordance with applicable law, other than this subsection. #### Section 12-209 As soon as feasible, after the date of payment of the purchase price or the date of deposit in court of funds to satisfy the award of compensation in a condemnation proceeding to acquire land, whichever is earlier, the displacing agency shall reimburse the owner to the extent the displacing agency deems fair and reasonable, for expenses he necessarily incurred for: (1) Recording fees, transfer taxes, and similar expenses incidental to granting the real property to the displacing agency, as provided in Sec. 12-106(b)(4) of this title; (2) Penalty costs for prepayment of any preexisting recorded mortgage entered into in good faith encumbering the real property; and (3) The pro rata portion of real property taxes allocable to a period subsequent to the date of vesting title in the displacing agency, or the effective date of possession of the real property by the displacing agency, whichever is earlier, in accordance with the provisions of Sec. 12-110 of this title. #### Section 12-210 (a) In order to promote uniform and effective administration of relocation assistance and real property acquisition, the displacing agencies, where applicable, shall consult one another and the lead agency on the establishment of rules and regulations and procedures for the implementation of these programs. (b) Notwithstanding the provisions and limitations of this subtitle: (1) Except as otherwise determined by the lead agency, any person receiving federal financial assistance may elect not to comply with Sec.Sec. 12-207, 12-208, and 12-209 of this subtitle; (2) When not receiving State or federal financial assistance, a displacing agency may elect not to comply with Sec.Sec. 12-207, 12-208, and 12-209 of this subtitle; or (3) When not receiving State or federal financial assistance, a displacing agency having the authority to acquire property by eminent domain or to displace persons permanently under State law may elect not to comply with Sec.Sec. 12-202, 12-203, 12-204, 12-205, and 12-206 of this subtitle. (c) Each displacing agency may establish rules and regulations and procedures as it determines to be necessary to assure: (1) That the payments and assistance authorized by this subtitle are administered in a manner which is fair and reasonable, and as uniformly as feasible; (2) That a displaced person who makes proper application for a payment, authorized for the person by this subtitle, is paid promptly after a move or, in hardship cases, is paid in advance; and (3) That any person aggrieved by a determination as to eligibility for a payment, authorized by this subtitle, or the amount of a payment, may have his application reviewed by the displacing agency having authority over the applicable program or project. (d) Each displacing agency, where applicable, may adopt rules, regulations, and procedures, consistent with the provisions of this subtitle and the federal "Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970", Public Law 91-646, the amendments of 1987 Public Law 100-17, and rules and regulations issued in accordance with it, as it deems necessary or appropriate to carry out the provisions of this subtitle and the federal act. (e) All rules and regulations adopted in accordance with this subtitle, except those adopted in accordance with Sec. 12-205 of this subtitle, shall comply with the State Administrative Procedure Act. This subsection does not apply to rules and regulations adopted by Baltimore City, or any of its agencies or departments. (f) (1) Notwithstanding any provision of this title, Baltimore City, or any of its agencies or departments responsible either in whole or in part for the administration of any public project, funded either in whole or in part by federal funds, including urban renewal programs and area code enforcement programs, may do any act necessary, including adoption of rules and regulations, to comply with the terms, conditions, and provisions of any federal law and rule and regulation authorizing benefits, payments, and compensation for displacees from these public projects and for persons owning any right, title to, or interest in real property acquired for these public projects in order to obtain the full benefit under them for the city and for persons and displacees from these projects in Baltimore City. (2) This subsection applies to existing acts of Congress authorizing benefits, payments and compensation for or to persons and displacees from public improvement projects receiving federal funds, subsequent acts of Congress of like character, and any existing or subsequently adopted rules and regulations issued in connection with them. #### Section 12-211 Except for any federal or State law providing low income housing assistance, a payment received under this subtitle may not be considered as income for the purposes of Title 10 of the Tax - General Article or for the purposes of determining the eligibility or extent of eligibility of any person for assistance under any other State law. #### Section 12-212 This subtitle may not be construed as creating in any condemnation proceeding brought under the power of eminent domain, any element of value or of damage not in existence prior to January 2, 1971. --- Md. Code Ann., Real Prop. (as displayed at mgaleg.maryland.gov, October 16, 2026)