In this subtitle the following words have the meanings indicated. “Current ground rent deed of record” means the document that vests title to the reversionary interest in the current ground lease holder. “Department” means the State Department of Assessments and Taxation. “Ground lease” means a residential lease or sublease for a term of years renewable forever subject to the payment of a periodic ground rent. “Ground lease holder” means the holder of the reversionary interest under a ground lease. “Ground lease holder” includes an agent of the ground lease holder. “Ground rent” means a rent issuing out of, or collectible in connection with, the reversionary interest under a ground lease. “Leasehold interest” means the tenancy in real property created under a ground lease. “Leasehold tenant” means the holder of the leasehold interest under a ground lease.

This subtitle applies to residential property that was or is used, intended to be used, or authorized to be used for four or fewer dwelling units. This subtitle does not apply to property: Leased for business, commercial, manufacturing, mercantile, or industrial purposes, or any other purpose that is not primarily residential; Improved or to be improved by any apartment, condominium, cooperative, or other building for multifamily use of greater than four dwelling units; or Leased for dwellings or mobile homes that are erected or placed in a mobile home development or mobile home park.

The Department shall maintain an online registry of all properties that are subject to ground leases. The online registry shall: Identify properties for which a renewal notice to preserve the irredeemability of an irredeemable ground lease has been filed; and Include a clear notation of the expiration date for each renewal notice. A ground lease or an amendment is not registered until the ground lease or amendment is posted on the online registry. The Department is not responsible for the completeness or accuracy of the contents of the online registry.

A ground lease holder shall register a ground lease with the Department by submitting a registration form that the Department requires. The registration form shall include: The premise address and tax identification number of the property for which the ground lease was created; The name and address of the ground lease holder; and A section that provides the ground lease holder the option to include the ground lease holder’s telephone number and e–mail address; The name and address of the leasehold tenant; The name and address of the person to whom the ground rent payment is sent; The amount and payment dates of the ground rent installments; To the best of the ground lease holder’s knowledge, a statement of the range of years in which the ground lease was created; and The liber and folio information for the current ground rent deed of record. The reporting form for changes or corrections to a ground lease registration shall include a section that provides the ground lease holder the option to include the ground lease holder’s telephone number and e–mail address.

The Department shall register a ground lease when the Department receives a registration form. If for any reason the Department is unable to register a ground lease for which a registration form has been submitted, the Department shall notify the ground lease holder of that ground lease, within 30 days of processing the registration form, of any information needed by the Department so as to complete the registration.

After a ground lease is registered, the ground lease holder shall promptly notify the Department of: A change in the name or address of the ground lease holder or person to whom the ground rent payment is sent; A redemption of the ground lease; and Any other information the Department requires.

If a ground lease is not registered in accordance with this subtitle: The ground lease holder may not: Collect or attempt to collect any ground rent payments, late fees, interest, collection costs, or other expenses related to the ground lease; Bring a civil action against the leasehold tenant to enforce any rights the ground lease holder may have under the ground lease; or Bring an action against the leasehold tenant under Subtitle 8 of this title; and The leasehold tenant of the unregistered ground lease may not be required to hold more than 3 years of ground rent in escrow for the unregistered ground lease. A leasehold tenant who believes that a ground lease holder has collected or attempted to collect ground rent payment, late fees, interest, collection costs, or other expenses related to the ground lease in violation of subsection (a)(1) of this section may submit to the Department an affidavit stating the factual basis for the leasehold tenant’s belief and any documents in support of the affidavit. On receipt of an affidavit and any supporting documents submitted under paragraph (1) of this subsection, the Department shall send notice to the ground lease holder that is the subject of the submission stating that: The Department has received a submission alleging that the ground lease holder has violated subsection (a)(1) of this section; and The relevant ground lease registration or amendment submitted to the Department by the ground lease holder for the property in question may be voided in the Department’s records unless, within 45 days after the notice, the ground lease holder submits to the Department a counter–affidavit and any documents in support of the counter–affidavit that sets forth the ground lease holder’s belief that any collection or attempted collection described in the affidavit did not violate subsection (a)(1) of this section and the factual basis for that belief. Notice sent to the ground lease holder under paragraph (2) of this subsection shall: Be sent by certified mail, return receipt requested, and by first–class mail to the address provided in the ground lease holder’s ground lease registration or amendment, or to any other address used by the ground lease holder known to the Department; and Include a copy of the affidavit and any supporting documents submitted by the leasehold tenant to the Department. If, after reviewing any affidavits, timely submitted counter–affidavits, and any supporting documents, the Department reasonably believes that the ground lease holder violated subsection (a)(1) of this section, the Department may make a final decision. Following a decision made under paragraph (1) of this subsection, the Department shall promptly send to all persons who submitted affidavits and counter–affidavits notice of the decision. Notice required under paragraph (2) of this subsection shall: Be sent by certified mail, return receipt requested, and by first–class mail; and State that the Department: Reasonably believes that the ground lease holder has violated subsection (a)(1) of this section; and May void a relevant ground lease registration or amendment in the Department’s records unless, within 45 days after the date of the notice, the ground lease holder files an action in the circuit court under subsection (e) of this section. If, after reviewing any affidavits, timely submitted counter–affidavits, and supporting documents, the Department reasonably believes that the ground lease holder did not violate subsection (a)(1) of this section, the Department shall promptly send to all persons who submitted affidavits or timely filed counter–affidavits notice of the decision. Notice required under paragraph (1) of this subsection shall: Be sent by certified mail, return receipt requested, and by first–class mail; and State that: The Department reasonably believes that the ground lease holder did not violate subsection (a)(1) of this section; and The Department will take no further action unless, within 45 days after the date of the notice, the leasehold tenant files an action in the circuit court under subsection (e) of this section. Following notice of a final decision by the Department made under this section, a ground lease holder or a leasehold tenant may file an action in the circuit court. An action filed under this subsection shall be filed: Within 45 days after the date of notice by the Department; and In the circuit court for the county in which the petitioner resides; or If the person does not reside in the State, in the circuit court for the county in which the property subject to the ground lease is located. An action filed under this subsection shall be heard de novo by the circuit court. Each person who was sent a notice under subsection (c) or (d) of this section shall be a party to an action filed under this subsection. The Department may not be joined as a party in an action under this subsection. If a court determines that a ground lease holder has violated subsection (a)(1) of this section: The court shall enter an order requiring the Department to void the appropriate ground lease registration or amendment in the Department’s records; The prevailing party shall provide a copy of the order to the Department; and The Department shall promptly void the registration or amendment and enter a notation in the Department’s records that the relevant ground lease registration or amendment is void under a court order. If a court determines that the ground lease holder has not violated subsection (a)(1) of this section: The court shall enter an order finding that the collection or attempted collection that was the subject of the complaint was not unlawful; and The prevailing party shall provide a copy of the order to the Department. A ground lease holder or leasehold tenant who files an action under subsection (e) of this section shall mail a copy of the complaint to the Department within 45 days after the date of notice of decision issued by the Department. If the Department does not receive a copy of a complaint filed under subsection (e) of this section within 45 days after the date of the notice of decision issued by the Department, the Department shall take action in accordance with its final decision. A ground lease registration or amendment that has been voided by the Department under this section may not be considered registered. The Department shall include notice on all ground rent forms and on its website in substantially the following form: “Notice required by law: A ground rent lease holder may not collect or attempt to collect ground rent, late fees, interest, collection costs, or any other expenses related to a ground lease that is not registered and posted on the Department’s online ground rent registry.”. The Department shall develop a form affidavit and a form counter–affidavit that shall be used by a leasehold tenant and ground lease holder, respectively, for submissions made to the Department under subsection (b) of this section. The form affidavit and form counter–affidavit developed by the Department shall include an acknowledgment that the form is being signed under penalty of perjury. The Department may not charge a fee to carry out this section. The Department may adopt regulations to carry out this section.

Subject to paragraph (2) of this subsection, a leasehold tenant or an interested party may submit to the Department documentation satisfactory to the Department of the redemption of a ground lease if: The ground lease is redeemed in a private transaction between the ground lease holder and the leasehold tenant; and The ground lease holder has failed to notify the Department of the redemption as required under § 8–706(2) of this subtitle. The documentation submitted under paragraph (1) of this subsection shall include a certified copy of the ground lease redemption deed that has been filed in the land records of the county in which the property that was subject to the ground lease is located. After accepting documentation under subsection (a) of this section, the Department shall update the online registry as required under § 8–703 of this subtitle to indicate that a ground lease has been redeemed.

The Department shall work with the State Archives to coordinate the recordation, indexing, and linking of ground leases registered under this subtitle.

The Department shall adopt regulations to carry out this subtitle.