# Tax - Property (GTP)

## Title 14. Procedure

### Subtitle 8. Collection

#### Section 14-801

(a) In Sec.Sec. 14-801 through 14-854 of this subtitle, the following words have the meanings indicated.

(b) "Other taxing agency" means any municipal corporation or other public or quasi-public corporation that may impose a tax of any kind which is or may become a lien on real property.

(c) "Owner-occupied residential property" means, with respect to a property located in Baltimore City, the principal residence of a homeowner as defined in Sec. 9-105(a)(7) of this article.

(d)

  (1) "Tax" means any tax, or charge of any kind due to the State or any of its political subdivisions, or to any other taxing agency, that by law is a lien against the real property on which it is imposed or assessed.

  (2) "Tax" includes interest, penalties, and service charges.

#### Section 14-804

(a)

  (1) Except as provided in paragraph (2) of this subsection, all unpaid taxes on real property shall be, until paid, liens on the real property in respect to which they are imposed from the date they became or become payable.

  (2) A lien on real property under paragraph (1) of this subsection terminates 20 years after the date that the lien attaches to the real property.

(b)

  (1) All unpaid tax on personal property is a lien on the personal property and on the real property of the owner of the personal property in the same manner in which taxes on real property are now liens on the real property with respect to which they are imposed in all subdivisions of the State; provided that the lien will attach to the real property only after the notice has been recorded and indexed among the judgment records in the office of the clerk of the circuit court in the county where the land lies, or is recorded and indexed on the tax rolls of the subdivision. Any subdivision, in lieu of recording in the appropriate court, may use a lien reporting system, and any subdivision so doing shall provide, on request, a lien report or memorandum with respect to any particular person.

  (2) A lien on personal property or real property under paragraph (1) of this subsection terminates 20 years after the date that the lien attaches to the property.

(c)

  (1) The county property tax deferred under Sec. 10-201 of this article is a lien on the property for which the deferral was granted.

  (2) A lien on property under paragraph (1) of this subsection terminates 20 years after the date that the lien attaches to the property.

(d)

  (1) The unpaid balance of a deferral granted under Sec. 10-202 of this article is a lien on the property for which the deferral was granted.

  (2) A lien on property under paragraph (1) of this subsection terminates 20 years after the date that the lien attaches to the property.

#### Section 14-805

(a) From the date property tax on real property is due, liability for the tax and a 1st lien attaches to the real property in the amount of the property tax due on the real property.

(b) Except as provided in subsection (c) of this section, from the date property tax on personal property is due, liability for the tax and a 1st lien attaches to the personal property in the amount of the property tax due on the personal property.

(c)

  (1)

    (i) Subject to paragraphs (2) and (3) of this subsection, a secured party with a security interest in personal property of a business may elect to satisfy a tax lien on the secured property by providing the notice required under paragraph (2) of this subsection and paying the required pro rata portion of the personal property taxes due and owing, including a pro rata share of accrued penalty and interest as provided in paragraph (3) of this subsection.

    (ii) If the secured party pays the required pro rata portion of the personal property taxes due and owing, including a pro rata share of the accrued penalty and interest as provided in paragraph (3) of this subsection, the statutory lien on the secured property identified in the notice required by paragraph (2) of this subsection shall be released.

  (2)

    (i) Not later than 60 days after a secured party takes repossession in accordance with Title 9 of the Commercial Law Article of the personal property of a business after a default by the business that owes personal property taxes, the secured party shall send written notice to each county and municipality that has a certified assessment by the State Department of Assessments and Taxation for the business in an amount equal to or greater than the cost basis of the personal property subject to repossession by the secured party, less the depreciation that would be applicable to the cost basis under the State's depreciation schedules.

    (ii) The notice required under subparagraph (i) of this paragraph shall include:

      (1) the State Department of Assessments and Taxation identification number of the business that owes personal property taxes;

      (2) the identity of the business owner;

      (3) the location of the personal property subject to repossession;

      (4) a reasonable description of the personal property subject to repossession, including, if known, the name of the manufacturer, model, year of manufacture, serial number, registration number, and vehicle identification number;

      (5) the date of purchase if known;

      (6) the purchase price of the property if known;

      (7) a copy of any sales documents in the possession of the secured party;

      (8) when the date of purchase and purchase price of the property are not known, the secured party's estimate of the fair market value of the property as of the date the secured party established a security interest in the personal property;

      (9) the secured party's estimate as to the value of the property based on the State's depreciation schedules; and

      (10) the secured party's estimate as to the pro rata portion of personal property taxes owed, including a pro rata share of accrued penalty and interest.

  (3)

    (i) Unless a county or municipality disputes the secured party's estimate as provided in subparagraph (ii) of this paragraph, after providing notice as required under paragraph (2) of this subsection, the secured party shall pay the pro rata portion of personal property taxes owed, including a pro rata share of accrued penalty and interest, as specified in paragraph (4) of this subsection, and the statutory lien on the secured property identified in the notice under paragraph (2) of this subsection shall be released.

    (ii) A county or municipality may dispute the secured party's estimate of the pro rata portion of personal property taxes owed, including a pro rata share of accrued penalty and interest, if the county or municipality:

      (1) responds in writing to the secured party not later than 45 days after the secured party provided notice as required under paragraph (2) of this subsection indicating the pro rata amount of personal property taxes and penalties and interest due on the specified personal property as calculated by the county or municipality; and

      (2) makes reasonable attempts to resolve the dispute with the secured party.

  (4)

    (i) If the State has certified an assessment on a business for 1 or more years and the assessment certifications are to a single county, a single municipality, or one or more municipalities within a single county, to obtain a statutory release under this section, the secured party shall pay to the county and municipalities the pro rata portion of the personal property taxes due by the business for each outstanding tax levy, including the pro rata share of accrued penalty and interest, corresponding to the pro rata portion of the assessment certified by the State for each tax levy at issue.

    (ii) If the State has certified an assessment on a business for 1 or more years to more than one county or, if applicable, one or more municipalities within one or more counties, to obtain a statutory release under this subsection, the secured party shall pay the pro rata portion of the tax due, including the pro rata share of accrued penalty and interest to the appropriate county or municipality in the following priority:

      (1) to the county, and the municipality within the county if applicable, where the principal office of the business is located according to the information on file with the State Department of Assessments and Taxation, if that county or municipality has an assessment certification by the State on the business personal property of the business in an amount equal to or greater than the cost basis of the property subject to repossession by the secured party, less depreciation;

      (2) to the county and municipality where the secured party repossessed the personal property of the business, if that county or municipality has an assessment certification by the State on the business personal property of the business in an amount equal to or greater than the cost basis of the property repossessed by the secured party, less depreciation;

      (3) to any county and municipality where the assessment certification by the State on the business personal property is in an amount equal to or greater than the cost basis of the property subject to repossession by the secured party, less statutory depreciation; or

      (4) if two or more counties or municipalities have an assessment certification by the State on the business personal property of the business that is in an amount equal to or greater than the cost basis of the property subject to repossession by the secured party, less depreciation, and the conditions in items 1 and 2 of this subparagraph have not been met, to each county and municipality, if applicable, the pro rata portion of the tax that corresponds to the pro rata portion of the cumulative assessment certified by the State for each tax year levy at issue in proportion to the assessment in each jurisdiction where the assessment certifications are in an amount equal to or greater than the cost basis of the personal property subject to repossession by the secured party, less depreciation.

  (5) If the secured party fails to provide the notice and payment required under paragraphs (2) and (3) of this subsection, the secured party may not satisfy the personal property tax lien on personal property by only paying the pro rata portion of personal property taxes due and owing, including accrued penalties and interest, on the personal property subject to repossession.

  (6) If the secured party seeks to limit the liability of the county's or municipality's statutory first lien for taxes owed to the value of the property subject to repossession, the secured party has the burden of proving, with reasonable certainty, the value of the property subject to repossession.

  (7) This subsection may not be construed to constitute a release of liability or release of the tax lien of the debtor business, with respect to its principals, officers, members, or directors, or any transferees of property that is encumbered by a tax lien and is owned, used, or leased by the business.

  (8)

    (i) This subsection may not be construed to constitute a reprieve or exemption from the annual personal property reporting duties and responsibilities of a business.

    (ii) This subsection may not be construed to constitute a release of liability for taxes levied as a result of subsequent assessments from the State as to any of the property repossessed by the secured party.

  (9) The secured party shall have a right of contribution from the business for any taxes, penalties, and interest paid by the secured party under this subsection.

#### Section 14-806

(a) In this section, "Board" means the Board of Estimates of Baltimore City.

(b)

  (1) To facilitate a transfer of real property the governing body of a county or municipal corporation or, in Baltimore City, the Board may release any liens for unpaid real property taxes or other charges and assessments imposed by the county or municipal corporation to which the property would otherwise be subject, if:

    (i) the total amount of liens for unpaid real property taxes, charges, and assessments imposed with respect to the property exceeds the lesser of the total value of the land and any improvement on the land as last determined by the Department or as determined by an appraisal report prepared not more than 6 months before the request for the release of the lien, by a real estate appraiser who is licensed under Title 16 of the Business Occupations and Professions Article;

    (ii) the county or municipal corporation or, in Baltimore City, the Baltimore City Department of Housing and Community Development certifies that the property:

      (1) is a vacant lot; or

      (2) has a building or structure that is:

      (A) vacant; and

      (B) unsafe or unfit for habitation;

    (iii) the potential transferee demonstrates the ability to return the property to productive use within a reasonable period of time;

    (iv) the governing body of the county or municipal corporation or, in Baltimore City, the Board finds that a transfer under this section is necessary:

      (1) to eliminate a blighting influence; and

      (2) to prevent the tax abandonment of a property; and

    (v) the potential transferee presents evidence to the governing body of the county or municipal corporation or, in Baltimore City, the Board that fair market value is being paid.

  (2) A governing body of a county or municipal corporation or, in Baltimore City, the Board may waive the requirement in paragraph (1)(v) of this subsection if:

    (i) the potential transferee is a nonprofit organization as defined in Sec. 1-101 of the Housing and Community Development Article; and

    (ii) the county or municipal corporation receives from the transferor an amount equal to any federal, State, or local income tax benefit realized by the transferor as a result of a deduction from income for a charitable contribution of the property to a nonprofit organization.

  (3) If the conditions in paragraph (2) of this subsection are met, the transferor's property tax debt shall be reduced by an amount equal to the fair market value of the transferred property.

(c) The release of a lien for real property taxes, charges, or assessments as authorized under subsection (b) of this section does not abate the transferor's liability for the remaining amount of the tax debt.

(d) The governing body of a county or municipal corporation or, in Baltimore City, the Board may set additional standards and requirements for approval of the release of liens under this section.

#### Section 14-808

(a)

  (1) Except for property that has been transferred by a municipality or county to a land bank authority established under Sec. 1-1403 of the Local Government Article, and except as provided under Sec. 14-811 of this subtitle, the collector shall proceed to sell and shall sell under this subtitle, at the time required by local law, all property in the county in which the collector is elected or appointed on which the tax is in arrears.

  (2) Failure of the collector to sell within the time required by local law does not affect the validity or collectability of any tax, or the validity of any sale thereafter made.

(b) In Calvert County the collector shall proceed to advertise and sell any real property as required by local law.

(c) In St. Mary's County, the Board of County Commissioners shall set by resolution the date and time of a tax sale.

(d) In Garrett County, the Board of County Commissioners shall set by resolution the date and time of a tax sale.

#### Section 14-809

(a)

  (1) When a property in a municipal corporation is delinquent in the payment of municipal corporation taxes or charges levied against the property, the appropriate municipal corporation official charged with the collection of taxes shall notify the collector of the county of the unpaid taxes or charges on the property.

  (2) If the procedures of this subtitle are not instituted by the county collector on or before 30 days after receiving the notice from the municipal corporation collector, the municipal corporation collector at any time after the 30-day period expires may use the provisions and procedures of this subtitle to sell the property for unpaid municipal corporation taxes or charges to the same extent that these provisions and procedures are available to county collectors.

(b)

  (1) This subsection applies in Calvert County and Garrett County.

  (2) The county collector shall use the provisions and procedures of this subtitle on notification by the municipal corporation collector of unpaid municipal corporation taxes and proceed to advertise and sell any real property located in any municipal corporation in the county on which municipal corporation taxes are delinquent.

  (3) The municipal corporation, in which the property being sold is located, shall buy in and hold, and pay the costs of the sale for any property offered for sale for nonpayment of municipal corporation taxes only for which there is no other purchaser.

  (4) If the municipal corporation purchases the property at the tax sale, the municipal corporation shall pay to the county any taxes owed to the county and any costs incurred by the county in the sale of that property. If the county purchases any property located in a municipal corporation in that county that is being sold for delinquent taxes, the county shall pay to the municipal corporation any taxes owed to the municipal corporation for that property.

#### Section 14-810

(a) At least 60 days before the mailing of the notices required by Sec. 14-812 of this subtitle, the collector shall notify all other taxing agencies in the county in which the collector is elected or appointed, except the State, of the collector's intention to hold a tax sale of property on which taxes are in arrears and stating the time and place of sale. Each taxing agency shall, on or before 30 days after receiving the notice from the collector, certify to the collector a statement of all taxes then due to it. The statement shall be in the form and shall contain the information that the collector requires. In addition to the taxes due to the State and the county the collector shall include in the notice required by Sec. 14-812 of this subtitle and in the advertisement required by Sec. 14-813 of this subtitle, all the taxes of all other taxing agencies, statements of which have been certified to the collector by the other taxing agencies in the time required by this section.

(b) The collector in carrying out the provisions of this subtitle is entitled conclusively to presume that the taxes certified to the collector by the taxing agencies, are all the taxes due to the taxing agencies and the collector is under no obligation with respect to any taxes not so certified nor shall any taxes not so certified be a lien on any property sold by the collector under this subtitle.

(c) In Cecil County and Carroll County, all taxes collected by the County Treasurer for other taxing agencies in the county, except those of the State, are subject to, at the discretion of the County Treasurer, a deduction of 10% in Cecil County and 25% in Carroll County before remittance is made to the agency for which collection is made. From the amount deducted, all expenses properly chargeable to making the collection, other than the expenses of sale provided for by Sec. 14-813 of this subtitle, shall be paid, and the balance shall be paid into the general funds of Cecil County and Carroll County as appropriate.

(d)

  (1) In this subsection, "code county" means any county that has adopted home rule under Article XI-F of the Maryland Constitution.

  (2) In a code county, the governing body of the county may require, by public local law, that taxes collected for other taxing agencies in the county are subject to a collection fee not exceeding 3%, to be borne by the delinquent taxpayer, if:

    (i) the taxes are collected as a result of a tax sale held by the county; and

    (ii) the county does not collect property tax for that taxing agency.

#### Section 14-811

(a)

  (1) Except as provided in this section, the collector may withhold from sale any property, when the total taxes on the property, including interest and penalties, amount to less than $250 in any 1 year.

  (2) The governing body of a county or municipal corporation may withhold from sale owner-occupied residential property or residential property occupied by an heir of a deceased owner that meets objective criteria established by the governing body of the county or municipal corporation.

(b)

  (1) The collector may withhold from sale any non-owner-occupied residential property, when the total taxes on the property, including interest and penalties, amount to less than $750.

  (2) When the total taxes on the property, including interest and penalties, amount to less than $1,000, the collector shall withhold from sale:

    (i) owner-occupied residential property; and

    (ii) residential property occupied by an heir of a deceased owner.

  (3) In Baltimore City, the collector shall withhold from sale residential property or property that is exempt from taxation under Sec. 7-204(1) or (2) of this article, if the taxes on the property consist only of a lien for unpaid charges for water and sewer service.

(c) Except as provided in subsection (d) of this section, the governing body of a county or municipal corporation may withhold from sale property that:

  (1) has a vacant building or structure that the county or municipal corporation intends to demolish because the building or structure is unsafe or unfit for habitation; or

  (2) has been designated for redevelopment purposes if:

    (i) the county or municipal corporation certifies that the property:

      (1) is a vacant lot; or

      (2) has a building or structure that is:

      (A) vacant; and

      (B) unsafe or unfit for habitation;

    (ii) the governing body of the county or municipal corporation finds that withholding the property from sale under this subsection is necessary:

      (1) to eliminate a blighting influence; and

      (2) to prevent the tax abandonment of the property; and

    (iii) the property meets any additional objective criteria established by the governing body of the county or municipal corporation for withholding property from sale for redevelopment purposes.

(d)

  (1) The governing body of a county or municipal corporation may withhold from sale a residential property or a property owned by a nonprofit organization if the property is enrolled in a payment program established by law by the governing body of the county or municipal corporation for the payment of taxes in arrears.

  (2) If the governing body of a county or municipal corporation withholds property from sale under paragraph (1) of this subsection, the governing body shall arrange for the payment to the State of any State property taxes in arrears on the property.

(e) The Mayor and City Council of Baltimore City or the governing body of a county or municipal corporation may withhold from sale property that has been designated for redevelopment purposes if the property meets objective criteria established by the Mayor and City Council of Baltimore City or the governing body.

(f) The governing body of a county or municipal corporation may cancel or postpone a tax sale during a state of emergency declared:

  (1) by the Governor in accordance with Title 14 of the Public Safety Article; or

  (2) by a county or municipal corporation in accordance with State and local law.

(g) The collector shall withhold from sale under this part of this subtitle any real property designated by the governing body of a county or municipal corporation for foreclosure and sale under Part V of this subtitle.

(h)

  (1) In this subsection, "dwelling" and "homeowner" have the meanings stated in Sec. 9-105 of this article.

  (2) The Mayor and City Council of Baltimore City or the governing body of a county or municipal corporation may withhold from sale a dwelling owned by a homeowner or occupied by an heir of a deceased homeowner who is low-income, at least 65 years old, or disabled if the homeowner or heir meets eligibility criteria established by the county or municipal corporation.

  (3)

    (i) The Mayor and City Council of Baltimore City or the governing body of a county shall withhold from sale the dwelling of a homeowner who has a terminal illness or medical hardship as documented by a licensed health care provider who has treated or examined the homeowner.

    (ii) The Department and the State Tax Sale Ombudsman shall, in consultation with the Maryland Department of Health, define "terminal illness" and "medical hardship" by regulation for purposes of subparagraph (i) of this paragraph.

    (iii) The collector for each county shall establish a process for a homeowner, a family member of a homeowner, or another representative of a homeowner to apply for the homeowner's dwelling to be withheld from sale under this paragraph.

    (iv) For a homeowner's dwelling to continue to be withheld from sale under this paragraph, the homeowner, a family member of the homeowner, or another representative of the homeowner shall reapply to the collector in the second year after the homeowner's dwelling was first withheld from sale under this paragraph and in every second year thereafter.

(i) The collector shall withhold from sale the dwelling of a homeowner who is enrolled in the Homeowner Protection Program established under Part VII of this subtitle.

(j)

  (1) The Mayor and City Council of Baltimore City or the governing body of a county shall establish a registry for interested parties or the Tax Sale Ombudsman to designate a property to be withheld from tax sale in accordance with this section.

  (2) On request of the Mayor and City Council of Baltimore City or the governing body of a county, the Department shall provide assistance in creating and maintaining the registry required under paragraph (1) of this subsection.

#### Section 14-812

(a)

  (1) At least 30 days before any property is first advertised for sale under this subtitle, the collector shall have mailed to the person who last appears as owner of the property on the collector's tax roll, at the last address shown on the tax roll, a statement giving the name of the person, and the amounts of taxes due.

  (2) On the statement required under paragraph (1) of this subsection there shall also appear the following notice:

  ...........................

  "Date"

  "This Is a Final Bill and Legal Notice to the Person Whose Name Appears on This Notice."

  "According to the collector's tax roll you are the owner of the property appearing on this notice. Some of the taxes listed are in arrears. Notice is given you that unless all taxes in arrears are paid on or before 30 days from the above date, the collector will proceed to sell the above property to satisfy your entire indebtedness. Interest and penalties must be added to the total at the time of payment."

  (3) In Baltimore City, the notice required under paragraph (1) of this subsection shall include an itemized list of the source and amount of each tax due that the collector seeks to recover through the tax sale.

(b) The mailing required under subsection (a) of this section shall include a separate insert that includes the following:

  (1) a clear, concise, and easily understandable summary of the tax sale process not exceeding one page in length that includes a simple explanation of the steps that a property owner is required to take to retain the property at each stage in the process;

  (2) the statement "If this property is your principal residence and you are having difficulty paying the taxes on the property, there are programs that may help you.";

  (3) a statement that the State Tax Sale Ombudsman established under Sec. 2-112 of this article or the County Tax Sale Ombudsman, if applicable, is available to:

    (i) answer questions about the tax sale process; and

    (ii) assist homeowners with applying for tax credits and other benefits that may help homeowners to pay delinquent taxes and retain their homes;

  (4) the toll-free telephone number and website address of the State Tax Sale Ombudsman or the County Tax Sale Ombudsman, if applicable;

  (5) a statement that free counseling is available to help homeowners make plans to pay their bills and keep their homes by calling the telephone number of:

    (i) the Homeowner's HOPE Hotline; or

    (ii) another similar local housing counseling service chosen by the collector;

  (6) the following information concerning the homeowners' property tax credit under Sec. 9-104 of this article:

    (i) the statement "The homeowners' property tax credit may significantly reduce the property taxes you owe if you have limited income and assets. You may be eligible for the credit at any age, but if you are 70 years old or older, you may be eligible for a special benefit that may reduce the taxes you owe for the past 3 years."; and

    (ii) the website address and telephone number of the State Tax Sale Ombudsman where more information is available about the homeowners' property tax credit and how to apply;

  (7) if the collector uses the tax sale process to enforce a lien for unpaid charges for water or sewer service and a water or sewer utility serving the collector's jurisdiction offers a program for discounted water or sewer rates for low-income customers:

    (i) a brief description of the program for discounted water or sewer rates for low-income customers; and

    (ii) information on how to apply for the program, including, if applicable, a website address and telephone number where more information and applications are available;

  (8) the following information concerning the Homeowner Protection Program under Part VII of this subtitle:

    (i) the statement, "If you are a homeowner of limited income you may qualify for the Homeowner Protection Program, which  could keep your home out of tax sale for at least 3 years and  could help you to pay the taxes you owe and keep your home."; and

    (ii) the website address and telephone number of the State Tax Sale Ombudsman where more information is available about the Homeowner Protection Program and how to apply; and

  (9) any other information that may assist low-income homeowners in avoiding tax sale costs or foreclosure that the collector considers appropriate.

(c) For any individual who last appears as an owner of the property on the collector's tax roll who has been listed as an owner of the property on the collector's tax roll for at least the last 25 years, the collector shall provide, at least 30 days before the property is first advertised, a list that includes the individual's name and address and notice to the area agency, as defined in Sec. 10-101 of the Human Services Article.

(d) Failure of the collector to mail the statement and notice to the last address of the person last assessed for the property, as it appears on the collector's tax roll, to mail, if applicable, a list including the name and address of an individual receiving the statement who has been listed as an owner of the property on the collector's tax roll for at least the last 25 years and notice to the area agency, or to include any taxes in the statement and notice, does not invalidate or otherwise affect any tax, except a tax that is required to be but has not been certified as provided in Sec. 14-810 of this subtitle, or any sale made under this subtitle to enforce payment of taxes, nor prevent nor stay any proceedings under this subtitle, nor affect the title of any purchaser.

(e) In Baltimore City, the notice required under subsection (a) of this section shall be sent by first-class certified mail.

#### Section 14-813

(a)

  (1) At any time after 30 days from the mailing of the statement and notice, the collector shall cause to be published, 4 times, once a week for 4 successive weeks in 1 or more newspapers that have a general circulation in the county in which the property is located, a notice that the property will, on the date and at the place named in the notice, be sold at public auction.

  (2) In Dorchester County, Frederick County, Garrett County, Kent County, and Queen Anne's County, the notice shall be published 3 times, once a week for 3 successive weeks.

  (3)

    (i) In Baltimore City, the notice shall be:

      (1) published two times, once per week in alternate weeks; and

      (2) posted on the City's website 4 weeks prior to the sale.

    (ii) The required newspaper notice shall include a statement that notice shall be posted on the City's website along with instructions on how the public can access the website.

(b) In Prince George's County and Wicomico County, the cost of publishing the notice shall be the same as the prevailing rate for publishing other legal notices and advertisements.

(c) In Anne Arundel County, the notice shall be published in 2 newspapers published in the county.

(d)

  (1) The notice shall contain with substantial accuracy the following:

    (i) a description of the property by giving the street number of the improvement and the frontage and depth of the lot, as the property appears on the collector's tax roll;

    (ii) the name of the person who last appears on the collector's tax roll as the owner of the property;

    (iii) the amount of all taxes due and unpaid on the property;

    (iv) if the property is unimproved, or has no street number, the notice shall describe the property as it is described on the collector's tax roll, and no unimproved property, or property having no street number, need be described by metes and bounds. If necessary to describe the property, the collector shall obtain a description and plat of the property from the county or municipal corporation surveyor, for which the sum of $7.50 shall be added to the total charges due on the property. If it is necessary to procure a description from the county or municipal corporation surveyor, the description shall be kept in the records of the collector's office and the published notice of sale shall contain a statement to the effect that a detailed description of the property to be sold, as prepared by the county or municipal corporation surveyor, is on file at the collector's office and may be examined by anyone interested in the description; and

    (v) the assessment of the property as determined by last assessment.

  (2) Failure of the collector to include any taxes in the published notice of sale does not affect the validity or collectibility of the taxes, except as required to be but have not been certified as provided in Sec. 14-810 of this subtitle, or the validity of any sale made hereunder to enforce the payment of taxes, nor prevent nor stay proceedings under this subtitle nor affect the title of any purchaser.

(e)

  (1) The following expenses relating to the sale shall be allowed, all of which are liens on the property to be sold:

    (i) the expense of publication of all notices;

    (ii) the cost of the county or municipal corporation surveyor's description and plat, if necessary;

    (iii) except as provided in items (vi) and (vii) of this paragraph, a fee to the attorney representing the county treasurer for services, that does not exceed $15 for each property; except that in any county that has a paid full-time solicitor, counsel or attorney, the fee shall be collected and paid into the general funds of the county;

    (iv) the auctioneer's fee, as provided in paragraph (2) of this subsection;

    (v) in Baltimore County, a fee, that may be established by the County Executive and subject to review by the County Council for legal services, administrative costs, and mailing expenses relating to the sale for each property, not to exceed actual costs, to be collected and paid into the general fund of Baltimore County;

    (vi) in Somerset County, Wicomico County and Worcester County a fee to the attorney representing the county treasurer or director of finance, that does not exceed $35 for each property, to be approved by the county treasurer or director of finance and by the governing body;

    (vii) in Baltimore City:

      (1) a fee of $30 for each property to the attorney representing the director of finance, that is collected and paid into the General Fund of Baltimore City; and

      (2) a fee that does not exceed $10 for the mailing of statements and notices;

    (viii) in Montgomery County, instead of the fee allowed under item (iii) of this paragraph, a fee that does not exceed $30 for each property for legal services relating to the sale, to be collected and paid into the general funds of the county; and

    (ix) a reasonable fee that does not exceed $150 for examinations of title before the mailing of statements and notices.

  (2) The auctioneer's fee allowed in paragraph (1) of this subsection shall be:

    (i) except in Baltimore City, Caroline County, Carroll County, Cecil County, Dorchester County, Frederick County, Garrett County, Harford County, Howard County, Kent County, Prince George's County, Queen Anne's County, Somerset County, St. Mary's County, Talbot County, Wicomico County, or Worcester County:

      (1) for any date when 1, 2, or 3 properties are sold, an amount not to exceed $10; and

      (2) for any date when 4 or more properties are sold, $3 for each property sold;

    (ii) in Dorchester County, $7.50 for each property sold;

    (iii) in Kent County, an amount not exceeding $7.50 for each property sold;

    (iv) in Cecil County and Queen Anne's County, $7.50 for each property sold;

    (v) in Somerset County and Wicomico County, $8 for each property sold;

    (vi) in Worcester County, the greater of $8 for each property sold or $300, to be allocated pro rata among each property sold;

    (vii) in Baltimore City:

      (1) for any date when 1, 2, or 3 properties are sold, an amount not to exceed $10;

      (2) for any date when 4 or more properties are sold, $3 for each property sold; and

      (3) in an electronic sale, an amount not to exceed $10 for each property sold;

    (viii) in Carroll County, the amount set by the Carroll County Commissioners;

    (ix) in Caroline County, Garrett County, Harford County, Howard County, Prince George's County, and Talbot County, $10 for each property sold;

    (x) in Frederick County, the lowest responsive bid for each property sold; and

    (xi) in St. Mary's County, the actual cost charged by the auctioneer for each property sold.

(f) In Garrett County, instead of complying with (d)(1)(i) through (iv) of this section, the notice shall contain a statement that gives the year or years for which the taxes are due and the amount of the taxes, to whom the property is assessed, the district where the property is located, the quantity of land offered for sale, the name or number of the tract or lot of land, if the property has a name or number, and is assessed by that name or number and if there is record evidence of the property in Garrett County, a reference to the record liber and folio where the deed or conveyance for the property is recorded, the name of the grantor and the date of the deed or conveyance, or any other description as is sufficient legally to identify the property, but in no case is a description by metes and bounds, courses and distances required. The collector in Garrett County may employ an attorney to examine the title to the land to be advertised or sold for taxes, under this subtitle, to provide the information required for the notice and prepare the notice for publication, for which services a sum that does not exceed $150 shall be added to the total charges due on the property.

#### Section 14-814

Each parcel of property liable to sale shall be sold as an entirety as the parcel of property is assessed in the assessment records.

#### Section 14-815

The power under this subtitle to sell property for the nonpayment of taxes exists notwithstanding the existence of personal property of the owner of the property to be sold.

#### Section 14-816

(a) Except as provided in subsection (b) of this section, when any property subject to sale under this subtitle is subject to a ground rent or lease for a term of 99 years renewable forever, the collector shall sell the leasehold interest only, with the improvements erected on the leasehold interest, if any; provided, however, that any property sold, subject to a ground rent or lease under this section, to a bona fide purchaser for value or the government of the jurisdiction conducting the sale, upon foreclosure of the rights of redemption, is not subject to any claim for rent unpaid, due, or accruing prior to the date of the judgment of foreclosure.

(b) If abandoned property in Baltimore City consisting of either a vacant lot or improved property cited as vacant and unfit for human habitation on a housing or building violation notice sold under this subtitle is subject to a ground rent or lease for a term of 99 years renewable forever, the collector shall sell the whole fee simple interest in the property.

(c) The termination of claims on property sold under subsection (a) of this section shall not foreclose any personal claims against previous holders of the interest sold, for rent unpaid, due, or accruing prior to the date of the judgment of foreclosure.

#### Section 14-817

(a)

  (1)

    (i) The sale shall be held on the day and at the place stated in the notice by advertising.

    (ii) The sale shall be held in the county in which the land to be sold is located.

    (iii) If the sale cannot be completed on that day, the collector shall continue the sale as determined by the collector and announced to the bidders at the sale until all property included in the sale is sold.

  (2) All sales shall be at public auction to the person who makes the highest good faith accepted bid, in fee or leasehold, as the case may be.

  (3)

    (i) The collector shall retain any common law or other authority normally granted to an auctioneer conducting a public auction and may refuse to accept bids that are not made in good faith.

    (ii) The collector may delegate this authority to an auctioneer.

  (4) The conduct of the sale shall be according to terms set by the collector, and published with a reasonable degree of specificity in the public notice of the tax sale, to ensure the orderly functioning of the public auction and the integrity of the tax sale process, including requirements that potential bidders:

    (i) establish their eligibility for bidding by presenting evidence of the legal existence of the bidding entity that is satisfactory to the collector;

    (ii) limit their representation at a tax sale to no more than a single agent per bidding entity; and

    (iii) refrain from any act, agreement, consent, or conspiracy to suppress, predetermine, rig, or fix the bidding at the sale.

  (5)

    (i) If determined by the collector to be in the best public interest and included in the required public notice of the sale, the collector may solicit and accept bids from the highest bidder for any group of properties to be sold at the tax sale.

    (ii)

      (1) Upon the request of any individual or group, the collector may remove any individual property or properties from a group of properties to be sold at the tax sale.

      (2) Upon the request of the property owner at least 15 days before the date of the tax sale, the collector shall remove any individual property or properties from a group of properties to be sold at the tax sale.

    (iii) The collector shall provide notice to the potential bidders of any alterations to a group of properties at the time the bidders become known.

    (iv) The collector may conduct the sale of a group of properties under this paragraph by a sealed bid process.

    (v) Except in Montgomery County, the collector shall establish a high-bid premium under subsection (b)(2) of this section for all properties to be sold:

      (1) in groups; or

      (2) by sealed bid process.

(b)

  (1) Except as provided in subsection (c) of this section, property may not be sold for a sum less than the total amount of all taxes on the property that are certified to the collector under Sec. 14-810 of this subtitle, together with interest and penalties on the taxes and the expenses incurred in making the sale, and the lien for the taxes, interest, penalties, and expenses passes to the purchaser.

  (2)

    (i) The collector may establish a high-bid premium to be applied to all properties to be sold at the tax sale.

    (ii) Except as provided in subparagraphs (iii) and (iv) of this paragraph, the high-bid premium shall be 20% of the amount by which the highest bid exceeds 40% of the property's full cash value.

    (iii) Except as provided in subparagraph (iv) of this paragraph, in Baltimore City and Prince George's County, the high-bid premium shall be 20% of the amount by which the highest bid exceeds the greater of:

      (1) the lien amount; or

      (2) 40% of the property's full cash value.

    (iv) For property assessed under agricultural use assessment, the high-bid premium shall be 20% of the amount by which the highest bid exceeds the appropriate value determined by the collector.

    (v) In addition to the amounts payable under paragraph (1) of this subsection, the highest bidder shall pay a high-bid premium if the collector:

      (1) determines that a high-bid premium shall be used for the tax sale; and

      (2) indicates in the public notice of the sale that the high-bid premium will be applied.

    (vi) The collector shall refund the high-bid premium, without interest, to:

      (1) the holder of the tax sale certificate on redemption of the property for which the high-bid premium was paid; or

      (2) the plaintiff in an action to foreclose the right of redemption on delivery of a tax sale deed for the property for which the high-bid premium was paid.

    (vii) The high-bid premium is not refundable after the time required under Sec. 14-833 of this subtitle for an action to foreclose the right of redemption if there has been no redemption and if an action to foreclose the right of redemption has not been filed within that time.

(c)

  (1) Abandoned property consisting of either a vacant lot or improved property cited as vacant and unfit for habitation on a housing or building violation notice may be sold for a sum less than the total amount of:

    (i) all taxes on the property that are certified to the collector under Sec. 14-810 of this subtitle;

    (ii) interest and penalties on the taxes; and

    (iii) expenses incurred in making the sale.

  (2) The collector shall establish a minimum bid for abandoned property sold under this subsection.

  (3) The person responsible for the taxes prior to the sale shall remain liable to the collector for the difference between the amount received in the tax sale under this section and the taxes, interest, penalties, and expenses remaining after the sale.

  (4) The balance remaining after the tax sale shall be included in the amount necessary to redeem the property under Sec. 14-828 of this subtitle.

  (5) In a proceeding brought by the governing body of a county or municipal corporation to foreclose the right of redemption under this subtitle, the complaint may request a judgment for the county or municipal corporation in the amount of the balance.

  (6) The balance remaining after the tax sale is no longer a lien on the property when:

    (i) a judgment is entered foreclosing the owner's right of redemption;

    (ii) the deed is recorded; and

    (iii) all liens accruing subsequent to the date of sale are paid in full.

  (7) The governing body of a county or municipal corporation may institute a separate action to collect the balance at any time within 7 years after the tax sale if the plaintiff is a private purchaser.

(d)

  (1) This subsection applies only in Prince George's County.

  (2) In addition to the sale by public auction required under this section, the collector shall conduct a sale by limited auction prior to the public auction of abandoned property consisting of either a vacant lot or improved property cited as vacant and unfit for habitation on a housing or building violation notice.

  (3) The sale by limited auction required under paragraph (2) of this subsection shall be open to bids only from an individual who is:

    (i) employed in a public school located in Prince George's County;

    (ii) employed by the Prince George's County Police Department;

    (iii) employed by the Prince George's County Fire Department;

    (iv) employed by the Prince George's County Office of the Sheriff;

    (v) employed by the Prince George's County Department of Corrections;

    (vi) employed by the Prince George's County government in a position not included under item (i), (ii), (iii), (iv), or (v) of this paragraph;

    (vii) employed by a federal government agency located in Prince George's County;

    (viii) employed by a municipal government in Prince George's County;

    (ix) a veteran of any branch of the armed forces of the United States who has received an honorable discharge and is employed in Prince George's County; or

    (x) a resident of Prince George's County.

  (4) The collector shall include the date, time, and location of the limited auction required under this subsection in any notice of sale at public auction required under this subtitle.

  (5)

    (i) The limited auction shall be subject to the same requirements for a public auction under this section.

    (ii) The purchase of property at a limited auction shall be considered the same as a purchase at public auction under this section and shall be subject to the requirements of this subtitle in the same manner as a sale at public auction.

    (iii) The collector shall establish a system to verify that individuals placing bids on property at the limited auction are eligible to do so under paragraph (3) of this subsection.

    (iv) A certificate of sale for property purchased at a limited auction shall be void if the purchaser was not an eligible participant under paragraph (3) of this subsection.

    (v) If a certificate of sale is void under subparagraph (iv) of this paragraph:

      (1) any right or interest of the holder of the certificate of sale is void and any payment received by the collector at the sale shall be forfeited and applied to any taxes in arrears on the property; and

      (2) the property shall be listed at the next limited or public auction held if the property is still eligible to be sold under this subtitle.

  (6) Property offered for sale during a limited auction that is not sold shall be offered for sale at public auction in accordance with this section.

#### Section 14-817.1

(a) Within 60 days after a property is sold at a tax sale, the collector shall send to the person who last appears as owner of the property on the collector's tax roll, at the last address shown on the tax roll, a notice that includes:

  (1) a statement that the property has been sold to satisfy unpaid taxes;

  (2) the date of the tax sale;

  (3) the amount of the highest bid;

  (4) the lien amount on the property at the time of sale;

  (5) a statement that the owner has the right to redeem the property until a court forecloses that right;

  (6) a statement that the purchaser of the property may institute an action to foreclose the property:

    (i) as early as 6 months from the date of the sale; or

    (ii) if a government agency certifies that the property requires, or shall require, substantial repair to comply with applicable business codes, as early as 60 days from the date of the sale;

  (7) a statement that if the property is redeemed before an action to foreclose the right of redemption is filed, the amount that shall be paid to redeem the property is:

    (i) the total lien amount on the property at the time of sale, with interest;

    (ii) any taxes, interest, and penalties paid by the holder of the certificate of sale; and

    (iii) for property that is not owner-occupied residential property, any delinquent taxes, interest, and penalties accruing after the date of the tax sale;

  (8) a statement that, if the property is redeemed more than 4 months after the date of the tax sale, and before an action to foreclose the right of redemption is filed, the holder of the certificate of sale may be reimbursed for:

    (i) attorney's fees for recording the certificate of sale;

    (ii) a title search fee, not to exceed $250; and

    (iii) reasonable attorney's fees, not to exceed $500;

  (9) a statement that, if the property is redeemed after an action to foreclose the right of redemption has been filed, the amount that shall be paid to redeem the property is the sum of:

    (i) the total lien amount on the property at the time of sale, with interest;

    (ii) any taxes, interest, and penalties paid by the holder of the certificate of sale;

    (iii) for property that is not owner-occupied residential property, any delinquent taxes, interest, and penalties accruing after the date of the tax sale; and

    (iv) attorney's fees and expenses to which the holder of the certificate of sale may be entitled under Sec. 14-843(a)(4) and (5) of this subtitle; and

  (10) the provisions of Sec. 14-843(a) of this subtitle, reproduced as they appear in the Code.

(b) The notice required under subsection (a) of this section shall be sent by first-class mail.

(c) The mailing required under this section shall include a separate insert that includes all of the information required under Sec. 14-812(b) of this subtitle.

#### Section 14-818

(a)

  (1)

    (i) The payment of the purchase price and the high-bid premium, if any, shall be on the terms required by the collector. Except as provided in subparagraphs (ii) and (iii) of this paragraph and Sec. 14-826 of this subtitle, the collector shall require the purchaser to pay, not later than the day after the sale, the full amount of taxes due on the property sold, whether the taxes are in arrears or not, together with interest and penalties on the taxes, expenses incurred in making the sale, and the high-bid premium, if any. The residue of the purchase price remains on credit.

    (ii) In Washington County, the collector shall require the purchaser to pay on the day of the sale the full amount of taxes due on the property sold, whether the taxes are in arrears or not, together with interest and penalties on the taxes, and expenses incurred in making the sale.

    (iii) In Baltimore City, when abandoned property is sold for less than the full amount of taxes due on the property, the collector shall require the purchaser to pay, not later than the day after the sale:

      (1) the full amount bid; and

      (2) the expenses incurred in making the sale.

  (2) After the final decree has been passed foreclosing the right of redemption in any property, the collector may not execute or deliver a deed to any purchaser other than the governing body of a county until the balance of the purchase price has been paid in full, together with all taxes and interest and penalties on the taxes accruing after the date of sale.

  (3) On receiving the balance and after accrued taxes and interest and penalties on the taxes, the collector shall execute and deliver a proper deed to the purchaser.

  (4) Any balance over the amount required for the payment of taxes, interest, penalties, and costs of sale shall be paid by the collector to:

    (i) the person entitled to the balance; or

    (ii) when there is a dispute regarding payment of the balance, a court of competent jurisdiction pending a court order to determine the proper distribution of the balance.

  (5)

    (i) Each county shall establish a process for a person entitled to any balance over the amount required for the payment of taxes, interest, penalties, and costs of sale to claim the balance.

    (ii) The process required under this paragraph:

      (1) shall apply uniformly to all claims for balances within the county; and

      (2) may not require a court order, unless there is a dispute regarding payment of the balance.

  (6) Within 90 days after delivering a deed to a purchaser, the collector shall notify the prior property owner of record of:

    (i) the amount of any balance over the amount required for the payment of taxes, interest, penalties, and costs of sale; and

    (ii) the process established under paragraph (5) of this subsection by which the prior property owner may claim the balance.

(b) In Washington County, any money held by the collector under subsection (a) of this section may be deposited in an interest-bearing account in a commercial bank. Any interest accrued is paid to the general fund of Washington County.

#### Section 14-819

(a) If the person entitled to the balance over and above the amount required for the payment of taxes, interest, penalties, and costs of sale is unknown, or if the person's identity is known but the person's address is unknown, the sum to which the person is entitled shall be held by the collector in a special fund for at least 3 years. During that period the collector shall make every reasonable effort to learn the identity of the person, or to learn the person's address, as the case may be, by notice published at the courthouse door, certified mail, return receipt requested, bearing a postmark from the United States Postal Service, addressed to the person's last known address, personal inquiry, or by any other reasonably possible means for determining the name or the address of the person.

(b) If at the end of the 3-year period the person still is unknown or unlocated, the collector may apply to the circuit court for the county, for an order declaring that the money shall be forfeited and become the property of the county or municipal corporation. The court shall determine on inquiry that all proper and reasonable effort has been made by the collector to determine the name or address of the person, and if the court is satisfied, it shall pass an order directing that the money shall be forfeited and become the property of the county or municipal corporation.

(c) The money shall then be paid into and be part of the general funds of the county or municipal corporation and may be expended for any proper purpose of the county or municipal corporation.

(d) If within 7 years from the time of the order of forfeiture a person appears before the circuit court and seeks an order for the payment of the money, and if the court determines that the person is the proper person to receive the money and is the person whom the collector was not able to identify or locate, the court by order shall direct the county or municipal corporation to repay the money to the person, without interest.

(e) On receiving the order, the county or municipal corporation shall provide for the repayment of the money from its general funds. A repayment order may not be directed to the county or municipal corporation after the 7-year period expires.

#### Section 14-820

(a) The collector shall deliver to the purchaser a certificate of sale under the collector's hand and seal, or by the collector's authorized facsimile signature, acknowledged by the collector as a conveyance of land, which certificate shall set forth:

  (1) that the property described in it was sold by the collector to the purchaser;

  (2) the date of the sale;

  (3) the amount for which the property was sold;

  (4) the total amount of taxes due on the property at the time of sale together with interest, penalties and expenses incurred in making the sale;

  (5) a description of the property in substantially the same form as the description appearing on the collector's tax roll. If the property is unimproved or has no street number, and the collector has procured a description of the property from the county or municipal corporation surveyor, this description shall be included in the certificate of sale. In Garrett County a copy of the description as required by Sec. 14-813(f) of this subtitle, as that section relates specifically to Garrett County, shall be included in the certificate of sale;

  (6) a statement that the rate of redemption is 6% a year, except as provided in subsection (b) of this section;

  (7) the time when an action to foreclose the right of redemption may be instituted; and

  (8)

    (i) that the certificate will be void unless foreclosure proceedings are brought within 2 years from the date of the certificate; or

    (ii) that, unless foreclosure proceedings are brought within 3 months from the date of the certificate to any abandoned property sold under Sec. 14-817(c)(1) of this subtitle with a minimum bid less than the lien amount, the certificate:

      (1) is void as to a private purchaser; and

      (2) reverts to the Mayor and City Council of Baltimore City or the governing body of a county, or if the property is located in a municipal corporation, the governing body of the municipal corporation for a period of 2 years from the date of the tax sale.

(b) Subject to subsection (c) of this section, the rate of redemption is 6% a year except:

  (1) in Allegany County the rate is 6% a year or as fixed by the County Commissioners;

  (2) in Anne Arundel County the rate is 6% a year or as fixed by a law of the County Council;

  (3) in Baltimore City the rate is 6% a year or as fixed by a law of the City Council;

  (4) in Baltimore County the rate is 6% a year or as fixed by a law of the County Council;

  (5) in Cecil County the rate is 6% a year or as fixed by the County Commissioners;

  (6) in Calvert County the rate is 10% a year or as fixed by the County Commissioners;

  (7) in Caroline County the rate is 10% a year or as fixed by the County Commissioners;

  (8) in Carroll County the rate is 14% a year or as fixed by the County Commissioners;

  (9) in Dorchester County the rate is 10% a year or as fixed by the County Commissioners;

  (10) in Frederick County the rate is 6% a year or as fixed by the governing body of Frederick County;

  (11) in Garrett County the rate is 10% a year or as fixed by the County Commissioners;

  (12) in Harford County the rate is 6% a year or as fixed by a law of the County Council;

  (13) in Howard County the rate is 6% a year or as fixed by a law of the County Council;

  (14) in Kent County the rate is 6% a year or as fixed by the County Commissioners;

  (15) in Montgomery County the rate is 6% a year or as fixed by a law of the County Council;

  (16) in Prince George's County the rate is 6% a year or as fixed by a law of the County Council;

  (17) in Queen Anne's County the rate is 6% a year or as fixed by the County Commissioners;

  (18) in Somerset County, Charles County, Wicomico County, and Worcester County the rate is 6% a year or as fixed by the County Commissioners or by a law of the County Council;

  (19) in Talbot County the rate is 6% a year or as fixed by a law of the County Council; and

  (20) in Washington County the rate is 6% a year or as fixed by the County Commissioners.

(c) For owner-occupied residential property, the rate of redemption may not exceed 10% a year.

(d) The certificate of sale shall be in substantially the following form:

"I, .........., Collector of Taxes for the State of Maryland and the .......... of ........, certify that on ......., 20...., I sold to ........, at public auction for the sum of .......... Dollars and ......... Cents, of which ...... Dollars has been paid, the property in ......... described as ........ and assessed to ......... The property described in this certificate is subject to redemption. On redemption the holder of the certificate will be refunded the sums paid on account of the purchase price together with interest at the rate of 6% a year from the date of payment to the date of redemption (except as stated in Sec. 14-820 of the Tax - Property Article of the Annotated Code of Maryland), together with all other amounts specified by Chapter 761 of the Acts of 1943, and acts that amend that chapter. The balance due on account of the purchase price and all taxes, together with interest and penalties on the taxes, accruing after the date of sale, must be paid to the Collector before a deed can be delivered to the purchaser. After .........., 20...., a proceeding can be brought to foreclose all rights of redemption in the property. This certificate will be void unless such a proceeding is brought within 2 years from the date of this certificate, except that with respect to any abandoned property sold under Sec. 14-817(c) of the Tax - Property Article of the Annotated Code of Maryland with a minimum bid less than the lien amount, the certificate will revert to the Mayor and City Council of Baltimore City or the governing body of the county, or if the property is located in a municipal corporation, the governing body of the municipal corporation, and will be void as to the private purchaser at tax sale unless such a proceeding is brought within 3 months from the date of the certificate.

Witness my hand and seal, this ....... day of ......, 20...............

...............................

Collector"

(To be followed by acknowledgment).

#### Section 14-820.1

The collector shall deliver a certificate of sale to the governing body of a county or municipal corporation for each property withheld from sale by the governing body of the county or municipal corporation under Sec. 14-811(c) of this subtitle.

#### Section 14-821

(a) Except as provided in subsection (b) of this section, any certificate of sale executed and delivered by the collector to the purchaser is assignable and an assignment of the certificate of sale vests in the assignee, or the legal representative of the assignee, all the right, title, and interest of the original purchaser. The assignment of certificate of sale may be made in accordance with the provisions of law relating to the short assignment of mortgages.

(b) A certificate of sale issued to a purchaser at a limited auction under Sec. 14-817(d) of this subtitle may not be assigned to another person.

(c)

  (1) The governing body of a county or municipal corporation may file a motion with the court requesting that a certificate of sale be assigned to the governing body of the county or municipal corporation if:

    (i) a foreclosure action has been initiated by the holder of the certificate of sale in accordance with this subtitle; and

    (ii) the foreclosure action is subject to dismissal for a lack of prosecution under Maryland Rule 2-507 or a motion for the entry of a final order has not been filed in the foreclosure action within 18 months after the filing of the complaint, whichever is earlier.

  (2) On the filing of a motion under this subsection, the court shall direct the holder of the certificate of sale to show good cause as to why the court should not grant the motion.

  (3) If the holder of the certificate of sale fails to respond to the motion in accordance with the Maryland Rules, the court shall grant the motion.

  (4) If a court grants a motion under this subsection, the holder of the certificate of sale shall forfeit:

    (i) any rights under the certificate of sale; and

    (ii) the amount paid to acquire the certificate of sale.

#### Section 14-822

The purchaser may record the certificate of sale and any assignment of the certificate of sale among the land records of the county in which the property is located, but failure to record does not affect the right to institute foreclosure proceedings as provided in this subtitle.

#### Section 14-823

The certificate of sale or assignment of the certificate of sale is presumptive evidence in all courts in all proceedings by and against the purchaser, and the purchaser's representatives, heirs and assigns, of the truth of the statements in the certificate of sale or assignment of the certificate of sale, of the title of the purchaser to the property described in the certificate of sale or assignment of the certificate of sale, and of the regularity and validity of all proceedings had in reference to the taxes for the nonpayment of which the property was sold and the sale of the property.

#### Section 14-824

(a) Except as provided in subsection (b) of this section, the governing body of a county or other taxing agency shall buy in and hold any property in their respective counties offered for sale for nonpayment of any taxes for which there is no private purchaser.

(b)

  (1) The governing body of a county or other taxing agency may buy in and hold any abandoned property for which there is no private purchaser for the amount of the minimum bid set pursuant to Sec. 14-817(c)(2) of this subtitle.

  (2) The governing body of a county or other taxing agency may transfer any interest it acquires in abandoned property to a land bank authority established under Sec. 1-1403 of the Local Government Article of which the governing body or other taxing agency is a member.

(c) The governing body of the county, a land bank authority established under Sec. 1-1403 of the Local Government Article of which the county is a member, and other taxing agency have the same rights and remedies with regard to the property as other purchasers, including the right to foreclose the right of redemption.

(d) A certificate of sale in the form provided in this subtitle shall be issued by the collector in the name of the governing body of the county or other taxing agency.

#### Section 14-825

When the governing body of a county or other taxing agency has purchased any property at a tax sale, it may sell and assign the certificate of sale relating to the property or after foreclosure sell the property.

#### Section 14-826

When any property on which there are unpaid taxes due to any other taxing agency or to the State is purchased by the governing body of the county at a sale held by the collector under this subtitle, or after being purchased is transferred to a land bank authority established under Sec. 1-1403 of the Local Government Article, neither the governing body of the county nor an authority need make and the collector or other taxing agency or the State is not entitled to demand immediate payment of the taxes due another taxing agency or the State. On the resale of the property by the governing body of the county or authority, unless the property is redeemed by the owner in accordance with Sec. 14-827 of this subtitle, or on the sale by the governing body of the county of a certificate of sale under Sec. 14-825 of this subtitle, other than to an authority of which the governing body is a member, the governing body of the county or the authority shall pay to the other taxing agency and to the State the proportion of the proceeds of sale as the taxes due the other taxing agency or the State bear to the total amount of taxes due the State, the county, and all other taxing agencies, after deducting the cost of sale and all other expenses connected with the sale.

#### Section 14-827

The owner or other person that has an estate or interest in the property sold by the collector may redeem the property at any time until the right of redemption has been finally foreclosed under the provisions of this subtitle.

#### Section 14-828

(a)

  (1) If the property is redeemed, the person redeeming shall pay the collector:

    (i) the total lien amount paid at the tax sale for the property together with interest;

    (ii) any taxes, interest, and penalties paid by any holder of the certificate of sale;

    (iii) except as provided under paragraph (2) of this subsection, any delinquent taxes, interest, and penalties accruing after the date of the tax sale;

    (iv) in the manner and by the terms required by the collector, any expenses or fees for which the plaintiff or the holder of a certificate of sale is entitled to reimbursement under Sec. 14-843 of this subtitle; and

    (v) for vacant and abandoned property sold under Sec. 14-817 of this subtitle for a sum less than the amount due, the difference between the price paid and the unpaid taxes, interest, penalties, and expenses.

  (2) For owner-occupied residential property, any taxes, interest, and penalties accruing after the date of the tax sale may not be included in the redemption payment required under paragraph (1) of this subsection.

(b) The rate of interest on redemption under subsection (a) of this section shall be set under Sec. 14-820 of this subtitle computed from the date of the tax sale to the date of the redemption payment.

(c) On receipt of the proper amount, the collector shall notify the holder of the certificate of sale that the property has been redeemed and that on surrender of the certificate of sale all redemption money excluding taxes received by the collector will be paid to the holder. For the purposes of this section, the collector is authorized to conclusively presume that the original purchaser at the tax sale is the holder of the certificate of sale, unless the collector receives a written notice of an assignment of the certificate of sale that gives the collector the name and address of the assignee. Upon request, the collector shall execute and deliver to the person redeeming the property a certificate of redemption which may be recorded among the land records of the county in which the land is located, and when recorded shall have the same effect as a release of a mortgage.

#### Section 14-829

(a) If the property is redeemed after an action to foreclose the right of redemption is instituted and there is any dispute regarding redemption, the person redeeming may apply to the court before which the action is pending to fix the amount necessary for redemption in accordance with the provisions of this subtitle.

(b) Except as provided in subsection (c) of this section, the collector may accept money for redemption without an order of court.

(c) If there is any dispute regarding redemption, the collector shall accept no money for redemption unless and until a certified copy of the order of court fixing the amount necessary for redemption is filed with the collector.

#### Section 14-830

(a) The owner of any property sold under the provisions of this subtitle shall have the right, during the period of redemption, to continue in possession of, and to exercise all rights of ownership over the property until the right of redemption has been finally foreclosed under the provisions of this subtitle.

(b) The holder of any certificate of sale may apply to the circuit court for the county in which the property is located for the appointment of a receiver of the property covered by the certificate, in accordance with the usual provisions of the laws and of rules and practice of the circuit courts that relate to receivers.

(c) If any certificate of sale is held by the governing body of the county or any other taxing agency, the governing body or taxing agency may make application by complaint, to the circuit court for the county for the appointment of a receiver of the property covered by the certificate of sale.

(d) The defendant, in the action brought by the governing body of the county or any other taxing agency under subsection (c) of this section for the appointment of a receiver shall be the owner of the property whose name last appears as the owner on the collector's tax roll.

(e) However, except as to property actually occupied by the owner if a certificate of sale is held by the Mayor and City Council of Baltimore City or the governing body of a county, then the Mayor and City Council of Baltimore City or the governing body of the county has the right of immediate possession of the property represented by the certificate of sale and to the rents accruing from the property from the date of sale, without the necessity of receivership proceedings.

(f) The Mayor and City Council of Baltimore City or the governing body of the county shall make a strict accounting of any and all rents collected to the owner on redemption of the property, and on the redemption, shall remit the rents, less all expenses required for the property maintenance and upkeep of the property.

(g) Any reasonable sums caused to be expended to conserve or stabilize the property shall become part of the redemption amount, provided the sums expended and the necessity for making the repairs are approved by the court.

#### Section 14-831

Until a judgment is issued by the circuit court that forecloses all rights of redemption in any property sold by the collector, the property shall continue to be assessed as though no sale had been made, whether the governing body of the county or some other person holds the certificate of sale. Once the judgment is passed, the property shall be transferred on the assessment books or records to the holder of the certificate of sale notwithstanding the provisions of Sec. 3-104 of the Real Property Article. After the transfer, the property shall be assessed to the holder of the certificate of sale for property tax purposes. All taxes accruing after the date of sale, together with interest and penalties on the taxes, are additional liens against the property and on passage of the final decree, are immediately due and payable by the holder of the certificate of sale except as provided under Sec. 14-826 of this subtitle. The collector may not deliver a deed to the person entitled to the deed until all subsequent taxes, together with interest and penalties on the taxes, are paid in full. If the governing body of a county or a land bank authority established under Sec. 1-1403 of the Local Government Article is a holder of the certificate of sale, the collector shall deliver a deed for property purchased at tax sale by the governing body of the county even though taxes are unpaid, the provisions of Sec. 3-104 of the Real Property Article and Sec. 14-847 of this subtitle notwithstanding.

#### Section 14-832

The provisions of Sec.Sec. 14-832.1 through 14-854 of this subtitle shall be construed to ensure a balance between:

(1) the due process and redemption rights of persons that own or have an interest in property sold at a tax sale; and

(2) the public policy of providing marketable title to property that is sold at a tax sale through the foreclosure of the right of redemption.

#### Section 14-832.1

In Queen Anne's County, whenever, prior to July 1, 1985, any property was sold for the nonpayment of any taxes and the sale has not been ratified and confirmed, any purchaser at the prior tax sale may proceed under the provisions of this subtitle to foreclose all rights of redemption in the property purchased. The collector, upon surrender of a receipt or of any other instrument evidencing payment of the necessary part of the purchase price, shall deliver to the purchaser a certificate signed by the collector containing all available information concerning the prior sale. Any certificate issued under this subtitle shall have the same force and effect as other certificates issued under the provisions of this subtitle and shall be subject to all of the provisions of this subtitle relating to any other certificates of sale. Any collector may issue the certificate provided for in this subtitle, notwithstanding the fact that any prior tax sale was made by one of the collector's predecessors in office. The provisions of this subtitle may not affect the right of any purchaser at a tax sale held prior to July 1, 1985 to proceed under the provisions of laws existing prior to July 1, 1985. Any purchaser may, at the option of the purchaser, proceed under the provisions of this subtitle or under the provisions of such prior existing laws.

#### Section 14-832.2

In Queen Anne's County, whenever, prior to July 1, 1985, any property was sold for the nonpayment of any taxes and the sale had been ratified and confirmed, whether or not a deed has been delivered to the purchaser, any purchaser at the prior tax sale may proceed under the provisions of this subtitle relating to the foreclosure of rights of redemption. The collector, upon surrender of a receipt or any other instrument evidencing payment of the purchase price, shall deliver to the purchaser a certificate signed by the collector containing all available information concerning the prior sale. Any certificate issued under this section shall have the same force and effect as other certificates issued under the provisions of this subtitle and shall be subject to all of the provisions of this subtitle relating to any other certificates of sale. Any collector may issue the certificate provided for in this section, notwithstanding the fact that any such prior sale was made by one of the collector's predecessors in office.

#### Section 14-832.3

In Queen Anne's County, when any tax sale made prior to July 1, 1985 has been finally ratified, then no circuit court in this State shall on and after July 1, 1987, entertain any proceedings to set aside or modify any title to any interest obtained in such sale.

#### Section 14-833

(a)

  (1) Except as provided in paragraph (2) of this subsection and subsections (a-1), (e), (f), and (g) of this section, at any time after 6 months from the date of sale a holder of any certificate of sale may file a complaint to foreclose all rights of redemption of the property to which the certificate relates.

  (2) Except as provided in subsections (a-1), (e), (f), and (g) of this section, at any time after 9 months from the date of sale of owner-occupied residential property, a holder of any certificate of sale may file a complaint to foreclose all rights of redemption of the property to which the certificate relates.

(a-1)

  (1) The holder of a certificate of sale may not file a complaint to foreclose the right of redemption until at least 2 months after sending the first notice and at least 30 days after sending the second notice required under this subsection to:

    (i) the person who last appears as owner of the property on the collector's tax roll; and

    (ii)

      (1) the current mortgagee of the property, assignee of a mortgagee of record, or servicer of the current mortgage; or

      (2) the current holder of a beneficial interest in a deed of trust recorded against the property.

  (2) The holder of a certificate of sale is not required to provide the notices under this subsection if subsection (e), (f), or (g) of this section applies to the property.

  (3) The notices required under this subsection shall include at least the following:

    (i) a statement of the fact of the issuance of a certificate of sale;

    (ii) a copy of the certificate of sale, if the holder of the certificate of sale received the certificate of sale before the notice was sent under this paragraph;

    (iii) a statement that the owner, a mortgage holder, or any other person that has an estate or interest in the property may redeem the property at any time until the right of redemption has been finally foreclosed under the provisions of this subtitle;

    (iv) a statement that the holder of the certificate of sale may file an action to foreclose the right of redemption at any time after 2 months from the date of the first notice;

    (v) a statement that if the property is redeemed before an action to foreclose the right of redemption is filed, the amount that shall be paid to redeem the property is:

      (1) the total lien amount on the property at the time of sale, with interest;

      (2) any taxes, interest, and penalties paid by the holder of the certificate of sale;

      (3) for property that is not owner-occupied residential property, any delinquent taxes, interest, and penalties accruing after the date of the tax sale; and

      (4) the following expenses incurred by the holder of the certificate of sale:

      (A) costs for recording the certificate of sale;

      (B) a title search fee, not to exceed $250;

      (C) the postage and certified mailing costs actually incurred for the notices; and

      (D) reasonable attorney's fees, not to exceed $500;

    (vi) a statement that if the property is redeemed after an action to foreclose the right of redemption has been filed, the amount that shall be paid to redeem the property is the sum of:

      (1) the total lien amount on the property at the time of sale, with interest;

      (2) any taxes, interest, and penalties paid by the holder of the certificate of sale;

      (3) for property that is not owner-occupied residential property, any delinquent taxes, interest, and penalties accruing after the date of the tax sale; and

      (4) attorney's fees and expenses to which the holder of the certificate of sale may be entitled under Sec. 14-843(a)(4) and (5) of this subtitle;

    (vii) the provisions of Sec. 14-843(a) of this subtitle, reproduced as they appear in the Code;

    (viii) a statement that, in Baltimore City only, the holder of the certificate of sale is entitled to taxes, interest, and penalties paid in accordance with Sec. 14-843(c) of this subtitle and interest at the rate of redemption under Sec. 14-820 of this subtitle from the date of payment to the date of redemption; and

    (ix) the name, address, e-mail address, and telephone number of:

      (1) the holder of the certificate of sale, or the holder's agent or attorney; and

      (2) the collector who made the sale.

  (4)

    (i)

      (1) Except as provided in subsubparagraph 2 of this subparagraph, the first of the two notices required under this subsection may not be sent until 4 months after the date of sale.

      (2) For owner-occupied residential property, the first of the two notices required under this subsection may not be sent until 7 months after the date of sale.

    (ii) The second of the two notices required under this section shall be sent:

      (1) to the persons listed in paragraph (1) of this subsection; and

      (2) no earlier than 1 week after the first notice required under this subsection is sent.

  (5)

    (i) If a certificate of sale is assigned after the first notice required under this subsection is sent and before an action to foreclose the right of redemption is filed, the assignee:

      (1) at any time after the assignment, shall send one additional notice under this subsection reflecting the new holder of the certificate; and

      (2) may not file a complaint to foreclose the right of redemption until at least 2 months after the additional notice has been sent.

    (ii)

      (1) This subparagraph does not apply in Baltimore City.

      (2) For owner-occupied residential property sold under this subtitle, before the filing of a complaint to foreclose the right of redemption, the current payoff amount to redeem the property may be requested by the:

      (A) owner of the property;

      (B) current mortgagee of the property, assignee of a mortgagee of record, or servicer of the current mortgage; or

      (C) current holder of a beneficial interest in a deed of trust recorded against the property.

      (3) A request made under subsubparagraph 2 of this subparagraph shall be made to the holder of the certificate of sale by phone, e-mail, or other contact method provided by the holder to the collector.

      (4) The payoff amount to redeem the property provided by the holder of the certificate of sale in accordance with subsubparagraph 2 of this subparagraph shall:

      (A) include only those expenses incurred before the holder of the certificate of sale received the request for the payoff amount; and

      (B) be deemed valid for a period of 30 days from the date the holder of the certificate of sale provides the payoff amount to the person who requested the payoff amount.

    (iii)

      (1) In Baltimore City, for owner-occupied residential property, prior to the filing of a complaint to foreclose the right of redemption, an owner of property sold under this subtitle may send a request for the current payoff amount to redeem the property.

      (2) A request made under subsubparagraph 1 of this subparagraph shall be sent to the holder of the certificate of sale by first-class certified mail, postage prepaid, return receipt requested, bearing a postmark from the United States Postal Service.

      (3) Within 10 days of delivery of a notice sent under subsubparagraph 1 of this subparagraph, the holder of a certificate of sale shall send the owner of the property, by first-class certified mail, postage prepaid, return receipt requested, bearing a postmark from the United States Postal Service, the current payoff amount to redeem the property, as of the date the request was made.

      (4) Except as provided in subsubparagraph 6 of this subparagraph, a holder of a certificate of sale who receives a request for a current payoff amount to redeem property under this subparagraph may not file a complaint to foreclose the right of redemption until the later of:

      (A) 20 days after the request under subsubparagraph 1 of this subparagraph is received by the holder of the certificate of sale;

      (B) 10 days after the holder of the certificate of sale sends the owner of the property the current payoff amount to redeem the property; or

      (C) the date on which a holder of the certificate of sale may file a complaint to foreclose the right of redemption under paragraphs (1) and (4) of this subsection.

      (5) The payoff amount to redeem the property provided by the holder of the certificate of sale in accordance with subsubparagraph 3 of this subparagraph shall be deemed valid for a period of 30 days from the date the holder of the certificate of sale sends the owner of the property the payoff amount.

      (6) If the owner of property sends more than 2 requests under subsubparagraph 1 of this subparagraph, the restrictions on filing a complaint to foreclose the right of redemption may not apply to a third or subsequent request.

  (6)

    (i) The first of the two notices required under this subsection shall be sent:

      (1) by first-class certified mail, postage prepaid, return receipt requested, bearing a postmark from the United States Postal Service; and

      (2) in an envelope prominently marked on the outside with the following phrase "Notice of Delinquent Property Tax".

    (ii) The second of the two notices required under this subsection shall be sent:

      (1) by first-class certified mail, postage prepaid, return receipt requested, bearing a postmark from the United States Postal Service; and

      (2) in an envelope prominently marked on the outside with the following phrase "Notice of Delinquent Property Tax".

  (7) The notice required under this subsection shall be sent to each person at the person's last address known to the holder of the certificate of sale, as obtained from:

    (i) the last deed or mortgage relating to the property recorded among the land records in the county in which the property is located;

    (ii) the tax rolls of the collector who made the sale, as to the property described in the certificate of sale; and

    (iii) with respect to the address of the resident agent and the principal office of the current mortgagee of record, the Department of Assessments and Taxation.

  (8) In a proceeding to foreclose the right of redemption, if the holder of a certificate of sale, the holder's agent, or the attorney of the holder of a certificate of sale, files an affidavit, before the court enters a final judgment foreclosing the right of redemption, attesting to the fact that the affiant has complied with the notice provisions of this subsection and provides evidence that the second of the two notices required under this subsection was sent by certified mail as required under paragraph (6)(ii) of this subsection, then:

    (i) the notice provisions of this subsection shall be deemed satisfied; and

    (ii) the failure of the owner, mortgagee, or beneficiary of a deed of trust to receive the required notice does not invalidate the proceeding to foreclose the right of redemption or the final judgment of the court.

(b) The right to redeem shall continue until finally barred by decree of the circuit court in which the foreclosure proceeding is filed.

(c)

  (1) The certificate is void unless a proceeding to foreclose the right of redemption is filed within 2 years of the date of the certificate of sale.

  (2) A certificate for abandoned property sold under Sec. 14-817(c) of this subtitle with a minimum bid less than the lien amount reverts to the Mayor and City Council of Baltimore City or the governing body of the county or, if the property is located in a municipal corporation, the governing body of the municipal corporation and is void as to the private purchaser at tax sale unless:

    (i) a proceeding to foreclose the right of redemption is filed within 3 months of the date of the certificate of sale; and

    (ii) unless the holder is granted an extension by the court due to a showing of extraordinary circumstances beyond the certificate holder's control, the holder secures a decree from the circuit court in which the foreclosure proceeding was filed within 18 months from the date of the filing of the foreclosure proceeding.

  (3) In Prince George's County, a certificate for property sold at a limited auction is void if the purchaser was not an eligible participant under Sec. 14-817(d)(3) of this subtitle.

(d)

  (1) If a certificate is void under subsection (c) of this section, then any right, title, and interest of the holder of the certificate of sale, in the property sold shall cease and all money received by the collector on account of the sale shall be deemed forfeited, and shall be applied by the collector on the taxes in arrears on the property.

  (2) If a certificate for abandoned property reverts to the Mayor and City Council of Baltimore City or the governing body of a county or, if the property is located in a municipal corporation, the governing body of the municipal corporation under this section, the Mayor and City Council or the governing body may:

    (i) file a foreclosure proceeding in its own name; or

    (ii)

      (1) resell the certificate; and

      (2) apply all money received on account of the sale to any outstanding balance remaining after the sale on the tax debt owed by the previous owner of the abandoned property.

(e) If any building or structure is sold and purchased under this subtitle, and the appropriate government agency certifies that the particular building or structure involved requires, or within 6 months shall require, substantial repairs to comply with the applicable building code:

  (1) the holder of any certificate of sale may at any time after 60 days from the date of sale file a complaint to foreclose all rights of redemption of the property to which the certificate relates; and

  (2) the certificate of the appropriate government agency shall be a part of the complaint to foreclose the rights of redemption.

(f) The holder of a certificate of sale for abandoned property sold under Sec. 14-817(c) of this subtitle with a minimum bid less than the lien amount may file a complaint to foreclose all rights of redemption in the property at any time after the date of sale.

(g) When the governing body of a county or municipal corporation becomes the holder of a certificate of sale purchased in accordance with Sec. 14-824 of this subtitle, the governing body of the county or municipal corporation may file a complaint, at any time after the date of sale, to foreclose all rights of redemption in abandoned property consisting of:

  (1) a vacant lot; or

  (2) improved property cited as vacant and unfit for habitation on a housing or building violation notice.

(h) The holder of a certificate of sale for abandoned property consisting of either a vacant lot or improved property cited as vacant and unfit for habitation on a housing or building violation notice in Prince George's County that is sold under Sec. 14-817(d) of this subtitle may file a complaint to foreclose all rights of redemption in the property at any time after the date of sale.

#### Section 14-834

The circuit court, on the filing of a complaint to foreclose the right of redemption, has jurisdiction to give complete relief under this subtitle, in accordance with the general jurisdiction and practice of the court, and with all laws and rules of court that relate to the circuit courts for the county in which the property is located, except as otherwise provided in this subtitle, to bar all rights of redemption and to foreclose all alienations and descents of the property occurring before the judgment of the court as provided in this subtitle and all liens and encumbrances on the property, except property taxes that arise after the date of sale, and to order an absolute and indefeasible estate in fee simple or leasehold to be vested in the holder of the certificate of sale.

#### Section 14-835

(a) A person shall file a complaint in the circuit court for the county in which the land is located, that states:

  (1) the fact of the issuance of the certificate of sale;

  (2) a description of the property in substantially the same form as the description appearing on the certificate of tax sale and, if the person chooses, any description of the property that appears in the land records;

  (3) the fact that the property has not been redeemed by any party in interest;

  (4) a request for process to be served on the defendants named in the complaint;

  (5) a request for an order of publication directed to all parties in interest in the property;

  (6) a request that the court pass a judgment that forecloses all rights of redemption of the defendants and any other person having any interest in the property;

  (7) a description of the amount necessary for redemption including the amount paid out at the tax sale; and

  (8) at the option of the plaintiff, in a foreclosure proceeding brought by the Mayor and City Council of Baltimore City for abandoned property sold for a sum less than the amount due under Sec. 14-817 of this subtitle, a request that the court pass a judgment for the City and against the person liable for the taxes prior to the sale in the amount of the unpaid taxes, interest, penalties, and expenses otherwise due in a tax sale.

(b) The certificate of sale issued by the collector to the purchaser or a photostatic copy of the certificate of sale shall be attached to the complaint and shall be made part of the complaint.

#### Section 14-836

(a) The plaintiff in any action to foreclose the right of redemption shall be the holder of the certificate of sale.

(b)

  (1) Except as otherwise provided in this subsection, the defendants in any action to foreclose the right of redemption shall be:

    (i) the record title holder of the property as disclosed by a search performed in accordance with generally accepted standards of title examination of the land records of the county, of the records of the register of wills of the county, and of the records of the circuit court for the county;

    (ii) if the property is subject to a ground rent, the record title holder of the fee-simple title and the owner of the leasehold title as disclosed by a search performed in accordance with generally accepted standards of title examination of the land records of the county, of the records of the register of wills of the county and of the records of the circuit court for the county;

    (iii) any mortgagee of the property or any assignee of the mortgagee of record, named as such in any unreleased mortgage recorded in the land records of the county;

    (iv) the trustee under any deed of trust recorded against the property or any holder of a beneficial interest in a deed of trust who files notice of the interest, which notice shall include identification of the deed of trust, the book and page where the deed of trust is recorded, and the address at which the holder may be served with a summons;

    (v) the county where the property is located; and

    (vi) if appropriate, the State.

  (2) The plaintiff may choose not to include as a defendant any of the persons enumerated in paragraph (1) of this subsection. However, the rights of any person not included as a defendant are not affected by the proceedings.

  (3) Subject to the provisions of paragraph (4) of this subsection, it is not necessary to name as defendant any other person that has or claims to have any right, title, interest, claim, lien or equity of redemption in the property sold by the collector. Any of these persons are included as defendants by the designation "all persons that have or claim to have any interest in property ..... (giving a description of the property in substantially the same form as the description that appears on the Collector's certificate of tax sale)." Any of these persons may be designated throughout the proceeding by the above designation and the cause may proceed against them by publication under order of court as provided in this subtitle.

  (4)

    (i) Notwithstanding the provision of paragraph (3) of this subsection, the plaintiff shall send written notice of the proceeding to:

      (1) all persons having a recorded interest, claim, or lien, including a judgment, who have not been made a defendant in the proceeding, and, if the subject property is part of a homeowners association or condominium association, to the homeowners association or condominium association governing the property, at the last reasonably ascertainable address;

      (2) each tenant of the subject property whose identity is known to the plaintiff, at the tenant's last reasonably ascertainable address; and

      (3) if the subject property is owner-occupied, the State Tax Sale Ombudsman.

    (ii) The notice under this subsection shall:

      (1) be sent by certified mail, postage prepaid, return receipt requested, bearing a postmark from the United States Postal Service; and

      (2) be accompanied by a copy of the complaint.

    (iii) The plaintiff shall file in the action:

      (1) the return receipt from the notice; or

      (2) an affidavit that:

      (A) the notice provisions of this subsection have been complied with; or

      (B) the address of the holder of the subordinate interest is not reasonably ascertainable.

    (iv) Notwithstanding any other provisions of this subsection, the plaintiff shall send written notice of the proceeding to any tenant of the subject property whose occupancy of the property is reasonably ascertainable by the plaintiff, whether or not the tenant's identity is known:

      (1) by first-class mail, postage prepaid, bearing a postmark from the United States Postal Service addressed to the tenant by name if the identity of the tenant is known to the plaintiff, and addressed to "occupant" if the identity of the tenant is not known;

      (2) to each separately leased area of the property that the plaintiff can reasonably ascertain is occupied;

      (3) in an envelope prominently marked on the outside with the following phrase "Notice of Action to Foreclose"; and

      (4) accompanied by a copy of the complaint.

    (v) A notice to tenants under this paragraph shall include the following statement in conspicuous, bold-faced print:

    "If the unpaid taxes, together with costs and expenses, are not paid, the court may enter a judgment foreclosing the right of redemption that would terminate your lease and right to occupy the property. You have the right to pay the unpaid taxes, together with costs and expenses, and avoid lease termination and eviction. A judgment foreclosing the right of redemption could be entered within the next 90 days and at that time you could be evicted or required to vacate the property.".

  (5) If the filing under paragraph (4)(iii) of this subsection is made before final ratification of the sale, failure of a holder of a subordinate interest or a tenant to receive the notice does not invalidate the sale.

  (6) Further notice of the proceeding shall be required by posting of the property in accordance with applicable Maryland Rules of Procedure.

  (7)

    (i) Subject to subparagraphs (ii) and (iii) of this paragraph, after issuance of the judgment foreclosing right of redemption and at least 30 days before taking possession of the property, the plaintiff shall give any tenant of the property written notice of the plaintiff's intention to obtain possession of the property and that the tenant must vacate the property within 30 days after the notice.

    (ii) During the 30-day period immediately following issuance of the judgment foreclosing the right of redemption, the plaintiff may apply for, process, and obtain, but not execute upon, a writ for possession of the property.

    (iii) The notice shall be sent:

      (1) by first-class mail, postage prepaid, certificate of mailing, bearing a postmark from the United States Postal Service addressed to the tenant by name if the identity of the tenant is known to the plaintiff, and addressed to "occupant" if the identity of the tenant is not known;

      (2) to each separately leased area of the property that the plaintiff can reasonably ascertain is occupied; and

      (3) in an envelope prominently marked on the outside with the following phrase "Notice of Taking Possession of Property".

    (iv) The notice required under this paragraph shall also be posted on the property within 5 days of first being sent under subparagraph (iii) of this paragraph.

  (8)

    (i) If an individual required to be named as a defendant is deceased and the plaintiff knows of a personal representative, the plaintiff shall join the personal representative as a defendant.

    (ii) If an individual required to be named as a defendant is deceased, or is believed by the plaintiff to be deceased, and the plaintiff knows of no personal representative, the plaintiff shall state those facts in an affidavit filed with the complaint.

    (iii) If the plaintiff states in an affidavit under subparagraph (ii) of this paragraph that an individual is deceased, the plaintiff may join as defendants "the testate and intestate successors of __________ (naming the deceased individual), deceased, and all persons claiming by, through, or under the decedent".

    (iv) If the plaintiff states in an affidavit under subparagraph (ii) of this paragraph that an individual is believed to be deceased, the plaintiff may join the individual as a defendant, and may also join "the testate and intestate successors of __________ (naming the individual), believed to be deceased, and all persons claiming by, through, or under the individual believed to be deceased".

#### Section 14-837

When an owner cannot be ascertained as provided in Sec. 14-836 of this subtitle, the unknown owner of the property may be included as a defendant by the following designation: "Unknown owner of property ..... (giving a description of the property in substantially the same form as the description that appears on the Collector's certificate of tax sale), the unknown owner's heirs, devisees, and personal representatives and their or any of their heirs, devisees, executors, administrators, grantees, assigns, or successors in right, title and interest," and the unknown owner shall be so designated throughout the proceeding, and the cause shall proceed against the unknown owner by publication under order of the court as provided in this subtitle.

#### Section 14-838

Every complaint to foreclose the right of redemption filed against an unknown owner as described in Sec. 14-837 of this subtitle shall have attached to it an affidavit by the person making the search that the owner of the property or a part of the property is unknown, although a complete search of the records performed in accordance with generally accepted standards of title examination for at least 40 years immediately before the institution of the suit has been made.

#### Section 14-839

(a)

  (1) The plaintiff shall show in the title of the complaint the last address known to the plaintiff or to the attorney filing the complaint of each defendant, as obtained from:

    (i) any records examined as part of the title examination;

    (ii) the tax rolls of the collector who made the sale, as to the property described in the complaint; and

    (iii) any other address that is known to the plaintiff or the attorney filing the complaint.

  (2) Paragraph (1) of this subsection does not require the plaintiff or the attorney for the plaintiff to make any investigations or to search any other records or sources of information other than those stated.

  (3) On the filing of the complaint, the court shall issue a summons to procure the answer and appearance of all the defendants as in other civil actions.

  (4) This paragraph does not apply if a last known address for a defendant is not obtained as provided under paragraphs (1) and (2) of this subsection. The plaintiff shall cause a copy of the order of publication to be mailed by first class mail or certified mail, postage prepaid, to each defendant at the defendant's address as determined by the provisions of paragraphs (1) and (2) of this subsection. As to any defendant not served by summons or as provided by paragraph (5) of this subsection, the plaintiff shall file an affidavit in the proceedings, which affidavit:

    (i) shall certify that this provision has been complied with; and

    (ii) shall be accompanied by:

      (1) the receipt obtained from the post office for the mailing; or

      (2) the certified mail receipt.

  (5) Notice to a defendant may be made in any other manner that results in actual notice of the pendency of the action to the defendant. When notice is made under this paragraph it shall be certified to by an affidavit that fairly describes the method and time of service.

  (6) A final judgment may not be entered before the last of:

    (i) where actual service is made on the defendant, the passage of the time specified in the summons issued by the court;

    (ii) the actual time specified in the order of publication; or

    (iii) 33 days after the date of mailing the copy of the order of publication under paragraph (4) of this subsection.

(b) The provisions of this section as to notice to persons who may have an interest in property sold for nonpayment of taxes, coupled with the order of publication and the other publicity and notices as ordinarily accompanies the sale of such property, as well as the knowledge of the taxes and the consequences for nonpayment of the taxes is declared:

  (1) to be reasonable and sufficient under all of the circumstances involved, and necessary in light of the compelling need for the prompt collection of taxes; and

  (2) to supersede any other requirement in other cases or civil causes generally.

(c) Notice of the institution of a proceeding to foreclose the right of redemption also shall be given to the collector where the property is located.

#### Section 14-840

At the same time the summons is issued as provided by Sec. 14-839 of this subtitle, the court shall pass an order of publication directed to all defendants, naming them as provided by this subtitle. The property shall be described in the order of publication as the property is described on the collector's certificate of tax sale. The order of publication shall warn any person that has or claims to have an interest in the property to answer the complaint or to redeem the property on or before the date named in the order of publication and in case of failure to appear, answer, or redeem the property a judgment will be entered that forecloses all rights of redemption in the property. The date named may not be less than 60 days from the date of the order. When the order of publication is issued and published, any person that has any right, title, interest, claim, lien, or equity of redemption in the property is bound by the judgment of the court that may be passed in the case as if the person were personally served with process. The order of publication shall be in substantially the following form:

Order of Publication

"The object of this proceeding is to secure the foreclosure of all rights of redemption in the following property .... in the ...., sold by the Collector of Taxes for the .... of .... and the State of Maryland to the plaintiff in this proceeding:

(Here insert description of property in substantially the same form as the description appearing on the Collector's certificate of tax sale.)

The complaint states, among other things, that the amounts necessary for redemption have not been paid.

It is thereupon this .... day of ...., 20.., by the Circuit Court for ...., Ordered, That notice be given by the insertion of a copy of this order in some newspaper having a general circulation in .... once a week for 3 successive weeks, warning all persons interested in the property to appear in this Court by the .... day of ...., 20.., and redeem the property .... and answer the complaint or thereafter a final judgment will be entered foreclosing all rights of redemption in the property, and vesting in the plaintiff a title, free and clear of all encumbrances.".

#### Section 14-842

In any proceeding to foreclose the right of redemption, it is not necessary to plead or prove the various steps, procedure and notices for the assessment and imposition of the taxes for which the property was sold or the proceedings taken by the collector to sell the property. The validity of the procedure is conclusively presumed unless a defendant in the proceeding shall, by answer, set up as a defense the invalidity of the taxes or the invalidity of the proceedings to sell or the invalidity of the sale. A defendant alleging any jurisdictional defect or invalidity in the taxes or in the proceeding to sell, or in the sale, must particularly specify in the answer the jurisdictional defect or invalidity and must affirmatively establish the defense.

#### Section 14-843

(a)

  (1) Except as provided in subsection (b) of this section, on redemption, the plaintiff or the holder of a certificate of sale may be reimbursed for expenses incurred in any action or in preparation for any action to foreclose the right of redemption as provided in this section.

  (2) The plaintiff or holder of a certificate of sale is not entitled to be reimbursed for any other expenses or attorney's fees that are not included in this section.

  (3)

    (i) The collector shall make at least one attempt by phone and e-mail to contact a holder of a certificate of sale after the collector is informed that the plaintiff or the holder of the certificate of sale has failed to respond to a request for the amount of expenses included in the redemption amount authorized under this section that is made by the:

      (1) owner of the property;

      (2) current mortgagee of the property, assignee of a mortgagee of record, or servicer of the current mortgage; or

      (3) current holder of a beneficial interest in a deed of trust recorded against the property.

    (ii) If the plaintiff or holder of the certificate of sale fails to respond within 5 business days after the collector's attempts to make contact in accordance with subparagraph (i) of this paragraph, the collector may redeem the property without a satisfaction letter stating that the expenses of the plaintiff or the holder of a certificate of sale have been paid.

  (4)

    (i) Except as provided in subparagraph (ii) of this paragraph, if an action to foreclose the right of redemption has not been filed, and the property is redeemed more than 4 months after the date of the tax sale, the holder of a certificate of sale may be reimbursed for the following expenses actually incurred:

      (1) costs for recording the certificate of sale;

      (2) a title search fee, not to exceed $250;

      (3) the postage and certified mailing costs for the notices required under Sec. 14-833(a-1) of this subtitle; and

      (4) reasonable attorney's fees, not to exceed $500.

    (ii) For owner-occupied residential property, if an action to foreclose the right of redemption has not been filed, and the property is redeemed more than 7 months after the date of the tax sale, the holder of a certificate of sale may be reimbursed for the following expenses actually incurred:

      (1) costs for recording the certificate of sale;

      (2) a title search fee, not to exceed $250;

      (3) the postage and certified mailing costs for the notices required under Sec. 14-833(a-1) of this subtitle; and

      (4) reasonable attorney's fees, not to exceed $500.

  (5) If an action to foreclose the right of redemption has been filed, the plaintiff or holder of a certificate of sale may be reimbursed for:

    (i) attorney's fees in the amount of:

      (1) $1,300 if an affidavit of compliance has not been filed, which amount shall be deemed reasonable for both the preparation and filing of the action to foreclose the right of redemption; or

      (2) $1,500 if an affidavit of compliance has been filed, which amount shall be deemed reasonable for both the preparation and filing of the action to foreclose the right of redemption;

    (ii) reasonable attorney's fees, not to exceed $1,200, incurred by the plaintiff or holder of a certificate of sale for opening an estate for purposes of service of process and notice on a defendant's estate;

    (iii) in exceptional circumstances, other reasonable attorney's fees incurred and specifically requested by the plaintiff or holder of a certificate of sale and approved by the court, on a case by case basis; and

    (iv) if the plaintiff or holder of a certificate of sale provides a signed affidavit attesting to the fact that the expenses were actually incurred, the following expenses actually incurred by the plaintiff or holder of a certificate of sale:

      (1) filing fee charged by the circuit court for the county in which the property is located;

      (2) service of process fee, including fees incurred attempting to serve process;

      (3) a title search fee, not to exceed $250;

      (4) if a second title search is conducted more than 6 months after the initial title search, a title search update fee, not to exceed $75;

      (5) publication fee charged by a newspaper of general circulation in the county in which the property is located;

      (6) posting fee;

      (7) postage and certified mail;

      (8) substantial repair order fee, not to exceed the fee charged by the government agency issuing the certificate of substantial repair;

      (9) expenses and costs incurred for opening an estate of a deceased defendant for purposes of service of process and notice, not to exceed $1,200; and

      (10) any court approved expense for stabilization or conversion of the property under Sec. 14-830 of this subtitle or in accordance with an action taken against the property by the county in which the property is located in accordance with the applicable building, fire, health, or safety codes.

  (6) In addition to the expenses and attorney's fees under paragraph (4) or (5) of this subsection, the plaintiff or holder of a certificate of sale may be reimbursed for:

    (i) taxes paid at the tax sale, together with redemption interest, arising after the date of sale to the date of redemption;

    (ii) the high bid premium paid at the tax sale, if applicable; and

    (iii) in Baltimore City only, taxes, interest, and penalties paid in accordance with subsection (c) of this section and interest at the rate of redemption provided in Sec. 14-820 of this subtitle from the date of payment to the date of redemption.

(b)

  (1)

    (i) Except as provided in subparagraph (ii) of this paragraph and paragraph (2) of this subsection, in Allegany County, Anne Arundel County, Baltimore City, Baltimore County, Calvert County, Caroline County, Carroll County, Cecil County, Charles County, Dorchester County, Frederick County, Garrett County, Harford County, Howard County, Kent County, Montgomery County, Prince George's County, Queen Anne's County, St. Mary's County, Somerset County, Washington County, Wicomico County, and Worcester County, the plaintiff or holder of a certificate of sale may not be reimbursed for expenses incurred within 4 months after the date of sale.

    (ii) For owner-occupied residential property, the plaintiff or holder of a certificate of sale may not be reimbursed for expenses incurred within 7 months after the date of sale.

  (2) This subsection does not apply to property for which the holder:

    (i) may file a complaint any time after 60 days from the date of sale, pursuant to Sec. 14-833(e) of this subtitle; or

    (ii) must file a complaint within 3 months from the date of sale, pursuant to Sec. 14-833(c)(2) of this subtitle.

(c) In Baltimore City, on or after October 1 of each year, the plaintiff or holder of a certificate of sale may pay taxes, interest, and penalties that become due after the date of the sale on the property described in the tax sale certificate and that have not been paid by the owner of the property.

(d) The Mayor and City Council of Baltimore City may establish, by law, a process by which an owner of owner-occupied residential property sold at tax sale in accordance with this subtitle may redeem the property through an installment payment plan.

#### Section 14-844

(a) After the time limit set in the order of publication and in the summons expires, the court shall enter judgment foreclosing the right of redemption. An interlocutory order is not necessary. The judgment is final and conclusive on the defendants, their heirs, devisees, and personal representatives and they or any of their heirs, devisees, executors, administrators, assigns, or successors in right, title, or interest, and all defendants are bound by the judgment as if they had been named in the proceedings and personally served with process.

(b) If the court finds for the plaintiff, the judgment vests in the plaintiff an absolute and indefeasible title in fee simple in the property, free and clear of all alienations and descents of the property occurring before the date of the judgment and encumbrances on the property, except taxes that accrue after the date of sale and easements of record and any other easement that may be observed by an inspection of the property to which the property is subject.

(c) If the collector sold the property subject to a ground rent or the plaintiff elected not to include the ground rent holder as a party, the judgment vests a leasehold interest in the plaintiff.

(d)

  (1) Once a judgment is granted, the plaintiff immediately becomes liable for the payment of all taxes due and payable after the judgment. The plaintiff may be sued in an action under Sec. 14-864 of this subtitle to collect all taxes due and payable after the judgment and it is not a defense that a deed to the property has not been recorded. On the entry of judgment, the plaintiff shall pay the collector any surplus bid and all taxes together with interest and penalties on the taxes due on the property.

  (2)

    (i) Once a judgment is granted, the plaintiff immediately becomes liable from the date of judgment for the payment of assessments or fees charged by a homeowners association or a condominium association due and payable from the date of the judgment.

    (ii) The plaintiff may be sued in an action to collect all assessments or fees charged by a homeowners association or a condominium association due and payable from the date of the judgment, and it is not a defense that a deed to the property has not been recorded.

(e) Where abandoned property has been sold for a sum less than the amount due under Sec. 14-817 of this subtitle, in a foreclosure proceeding brought by the Mayor and City Council of Baltimore City or the governing body of a county or municipal corporation, the final order may include a judgment in favor of the city, county, or municipal corporation and against the person liable for taxes prior to the sale, in the amount of the unpaid taxes, interest, penalties, and expenses otherwise due in a tax sale.

(f) In Baltimore City, for a proceeding concerning an owner-occupied residential property, if the court finds for the plaintiff, the final judgment shall state whether there is a bid balance as a result of the tax sale and that the former owner's portion of the bid balance may be obtained by contacting the Baltimore City Bureau of Revenue Collections.

#### Section 14-845

(a) A court in the State may not reopen a judgment rendered in a tax sale foreclosure proceeding except on the ground of lack of jurisdiction or fraud in the conduct of the proceedings to foreclose; however, no reopening of any judgment on the ground of constructive fraud in the conduct of the proceedings to foreclose shall be entertained by any court unless an application to reopen a judgment rendered is filed within 1 year from the date of the judgment.

(b) If the judgment of the court foreclosing all rights of redemption is set aside, the amount required to redeem is the amount required by this subtitle, and in addition, the reasonable value, at the date the judgment is set aside, of all improvements made on the property and all costs incurred with respect to development of the property by the purchaser and the purchaser's successors in interest.

(c) With respect to abandoned property that is subject to Sec. 14-817(c) of this subtitle:

  (1) a defendant or any person described in Sec. 14-836(b)(1) or (4)(i) of this subtitle may file an action to recover damages on the ground of inadequate notice within 3 years after the date of judgment foreclosing rights of redemption;

  (2) damages in an action under item (1) of this subsection may not exceed the fair market value of that person's interest in the property at the time of the sale; and

  (3) a person may not file to reopen a judgment foreclosing rights of redemption based on inadequate notice.

(d) A court in the State may not reopen a judgment rendered in a foreclosure proceeding instituted by the Mayor and City Council of Baltimore City under former Article 81, Sec.Sec. 117 through 121 of the Code unless an application to reopen the judgment is filed on or before June 30, 1987. After June 30, 1987, any judgment rendered under former Article 81, Sec.Sec. 117 through 121 of the Code shall be deemed conclusively to have been ratified by all persons who might otherwise have grounds to object to the judgment.

#### Section 14-846

When a complaint to foreclose the right of redemption, as provided in this subtitle, is filed, and the plaintiff has described or does describe the property in the complaint in a manner other than that contained in the certificate of sale, any judgment entered barring the defendant's right to redeem bars the defendant's interest in the property described in the judgment, and that property only, provided the description in the judgment, the description in the complaint, and the description in the certificate of sale are intended to describe the same property.

#### Section 14-847

(a)

  (1)

    (i) Except as provided in paragraph (2) of this subsection, the judgment of the court shall direct the collector to execute a deed to the holder of the certificate of sale in fee simple or in leasehold, as appropriate, on payment to the collector of the balance of the purchase price, due on account of the purchase price of the property, together with all taxes and interest and penalties on the property that accrue after the date of sale.

    (ii) The judgment shall direct the supervisor to enroll the holder of the certificate of sale in fee simple or in leasehold, as appropriate, as the owner of the property.

  (2) In Frederick County, if the collector is absent, the deed may be executed by a deputy collector designated by the collector.

(b) The deed shall be prepared by the holder of the certificate of sale or the attorney for the holder of the certificate of sale and all expenses incident to the preparation and execution of the deed shall be paid by the holder of the certificate of sale.

(c) The clerk of the court in which the suit is instituted shall issue a certified copy of the judgment of the court to the collector and supervisor and the collector is not obligated to execute the deed provided for in this section until that certified copy of the judgment is delivered to the collector.

(d)

  (1) If the holder of the certificate of sale does not comply with the terms of the final judgment of the court within 90 days as to payments to the collector of the balance of the purchase price due on account of the purchase price of the property and of all taxes, interest, and penalties that accrue after the date of sale, that judgment may be stricken by the court on the motion of an interested party for good cause shown.

  (2) In Baltimore City, a certificate holder who has been enrolled as the owner of the property under subsection (a) of this section is not an interested party within the meaning of this subsection.

  (3) If the holder of the certificate of sale does not comply with the terms of the final judgment of the court within 105 days as to payments to the collector of the balance of the purchase price due on account of the purchase price of the property and of all taxes, interest, and penalties that accrue after the date of sale, and no motion has been filed under paragraph (1) of this subsection, the court may, on motion of the governing body of the county or municipal corporation in which the property is located, for good cause shown, enter a judgment:

    (i) striking the final judgment of the court;

    (ii) directing the collector to execute a deed prepared by the governing body of the county or municipal corporation in fee simple, on payment to the collector of the balance of the purchase price due on account of the purchase price of the property and of all taxes, interest, and penalties that accrue after the date of sale; and

    (iii) vesting title to the property in the governing body of the county or municipal corporation in fee simple, free and clear of all alienations and descents of the property occurring before the date of the final judgment and encumbrances on the property, except any taxes that accrue after the date of sale and easements of record and any other easement that may be observed by an inspection of the property to which the property is subject.

  (4) If a holder of a certificate of sale submits a deed under subsection (b) of this section for the property to the governing body of the county or municipal corporation before a judgment under paragraph (1) or (3) of this subsection is entered, the motion under paragraph (1) or (3) of this subsection shall be denied as moot.

#### Section 14-848

If the judgment of the court declares the sale void and sets it aside, the collector shall repay the holder of the certificate of sale the amount paid to the collector on account of the purchase price of the property sold, with interest at the rate provided in the certificate of tax sale, together with all taxes that accrue after the date of sale, which were paid by the holder of the certificate of sale or the predecessor of the holder of the certificate of sale, and all expenses properly incurred in accordance with this subtitle. If the collector paid the claims of any other taxing agency, the collector is entitled to a refund of the claim from the taxing agency with interest. The collector shall proceed to a new sale of the property under this subtitle and shall include in the new sale all taxes that were included in the void sale, and all unpaid taxes that accrued after the date of sale declared void.

#### Section 14-849

(a) Notwithstanding any law to the contrary, in Baltimore City, the Mayor and City Council may not sell a taxpayer's property for failure by the taxpayer to pay an alley assessment charge.

(b) Except as provided in subsection (c) of this section, this section does not affect any other right or remedy of the City for the collection of an alley assessment charge.

(c) Baltimore City may not acquire owner-occupied residential property by means of execution of a judgment for failure by the owner, upon whom the alley assessment charge was originally made, to pay the alley assessment charge.

#### Section 14-849.1

(a) In Baltimore City, the Mayor and City Council may not sell a property to enforce a lien for unpaid charges for water and sewer service unless:

  (1) the lien is for at least $350;

  (2) the property is not:

    (i) a residential property; or

    (ii) real property that is exempt from taxation under Sec. 7-204(1) or (2) of this article; and

  (3) the unpaid charges for water and sewer service are at least 3 quarters in arrears.

(b) Notwithstanding subsection (a) of this section, the Mayor and City Council may enforce a lien on a property other than residential property or real property that is exempt from taxation under Sec. 7-204(1) or (2) of this article for unpaid water and sewer service that is less than $350 if the property is being sold to enforce another lien.

(c) This section does not affect any other right or remedy of Baltimore City for the collection of a water and sewer service charge.

#### Section 14-850

Any person who acquires a deed to property under this subtitle is entitled to issuance of a writ for possession of the property under the Maryland Rules as if the person had obtained a judgment awarding possession of the property.

#### Section 14-851

Any act, whether public general or public local, inconsistent with the provisions of Parts I through III of this subtitle, is repealed to the extent of the inconsistency; but all laws repealed by this subtitle shall nevertheless remain in force in respect to any tax sale made or instituted before December 31, 1943. Any tax sales made or instituted after December 31, 1943, shall be made only in accordance with the provisions of Parts I through III of this subtitle. However, all laws repealed by this subtitle shall nevertheless remain in force with respect to any tax sales made or instituted in Allegany County on or before July 1, 1984. Any tax sales made or instituted after July 1, 1984 in Allegany County shall be made only as provided under this subtitle.

#### Section 14-852

When land is sold to pay county or State taxes, or both, assessed on the land and in default, and the owner of the land at the time of the tax sale, the owner's heirs, devisees, or assigns, severally, jointly or in continuous successive ownership have held the land sold in adverse possession for 7 years after the final ratification of the tax sale and before action or suit is brought, and prosecuted by the purchaser at the tax sale, the purchaser's heirs, devisees, or assigns to obtain possession of the land, the possession is a bar to all right, title, claim, interest, estate, demand, right of entry, and right of action of the purchaser or the purchaser's heirs, devisees, or assigns derived from the tax sale as to the land held in possession. This section applies to all tax sales except for tax sales made and ratified on or before the 1st day of May, in the year 1900, its operation and effect is suspended for 1 year from the 1st day of May, in the year 1906.

#### Section 14-853

If property is taken in execution in a suit by the State to recover taxes, in order to protect the interest of the State the Comptroller may purchase the property for State use if the purchase price does not exceed the amount of the State's demand and the cost and expenses of the sale.

#### Section 14-854

Property on which property tax is computed under Sec.Sec. 10-103, 10-104, 10-105, 10-304, and 10-305 of this article may be sold for taxes only:

(1) during a succeeding year; and

(2) in accordance with the laws of the jurisdiction where the property is located.

#### Section 14-864

On or before 7 years from the date the tax is due, the State, a county, or a municipal corporation may initiate an action in a court of appropriate jurisdiction to collect any tax imposed under this article and within the time provided by law. If a person owes State and county or municipal corporation taxes to the same collector, the action may combine claims of the State, county, and municipal corporation.

#### Section 14-865

(a) Except as otherwise provided in subsection (b) of this section:

  (1) if a tax under this article is not paid when due to the State, the Governor, the Comptroller, or the Treasurer shall request the Attorney General to institute an action against the person responsible for the tax; and

  (2) if a tax under this article is not paid when due to a county or municipal corporation, the collector shall request the attorney for the county or municipal corporation to institute an action against the person responsible for the tax.

(b) An officer of the State, a county, or a municipal corporation is not required to request the action under subsection (a) of this section if:

  (1) the taxes are sufficiently secured by a lien on real property under this title; or

  (2) it is certain that no part of a judgment in the action would be collectible.

#### Section 14-866

(a) If a request is made under Sec. 14-865 of this subtitle, the Attorney General or attorney requested to initiate an action shall initiate the action.

(b) If the Attorney General and the Treasurer, or the collector, the chief fiscal officer, and the attorney of the county or municipal corporation agree that the full amount of the claim would be uncollectible, the Attorney General or attorney may:

  (1) compromise the claim;

  (2) accept a lesser amount on behalf of the collector or State Treasurer; and

  (3) issue a release of the claim or satisfaction of the judgment.

#### Section 14-867

(a)

  (1) An action under Sec. 14-866 of this subtitle may be commenced by a writ of attachment against any asset of the defendant.

  (2) Except as otherwise provided in this article, the attachment shall be governed in all respects by the law and Maryland Rules applicable to attachments for liquidated damages against nonresidents.

(b) The plaintiff in the action under subsection (a) of this section is not required to file an attachment bond.

#### Section 14-868

The plaintiff named in an action under Sec. 14-866 of this subtitle shall be:

(1) for an action to collect State tax:

  (i) the State; or

  (ii) the Treasurer, or other State officer who is authorized by law to collect the tax;

(2) for an action to collect county tax:

  (i) the Mayor and City Council of Baltimore City or the governing body of the county; or

  (ii) the county collector with a designation of authority;

(3) for an action to collect municipal corporation property tax:

  (i) the governing body of the municipal corporation; or

  (ii) the municipal corporation collector with a designation of authority; or

(4) for an action to collect more than 1 tax from the same person, the collector or other officer who is authorized to collect the taxes.

#### Section 14-869

(a) If the plaintiff in an action under Sec. 14-866 of this subtitle requests, the case shall be brought to trial as soon as the case is at issue, and shall have precedence over all other civil cases.

(b)

  (1) In an action under Sec. 14-866 of this subtitle the certificate of the Comptroller or of the collector of any county or municipal corporation showing the amount of tax due with all penalties and interest:

    (i) is prima facie evidence to entitle the plaintiff to judgment for the amount of the tax, penalty, and interest; and

    (ii) shall give the defendant the burden of proving that the tax has been paid or any other sufficient defense.

  (2) This section does not permit the defendant to use a defense that the defendant might have raised by way of appeal from the assessment on which the tax was imposed.

#### Section 14-870

A penalty assessed against a person under Sec. 14-704 of this title shall be added to any State tax that is assessed by the Department against the person. The Comptroller may collect the penalty from the person in the same manner as taxes are collected under this subtitle.

#### Section 14-873

(a) In this part the following words have the meanings indicated.

(b) "Interested party" means:

  (1) the person who last appears as owner of the real property on the collector's tax roll;

  (2) a mortgagee of the property or assignee of a mortgage of record;

  (3) a holder of a beneficial interest in a deed of trust recorded against the real property;

  (4) a taxing agency that has the authority to collect tax on the real property; or

  (5) any person having an interest in the real property whose identity and address are:

    (i) reasonably ascertainable from the county land records; or

    (ii) revealed by a full title search consisting of at least 50 years.

(c) "Tax" has the meaning stated in Sec. 14-801 of this subtitle.

#### Section 14-874

(a) Real property may be subject to foreclosure and sale under this part only if:

  (1) the property consists of a vacant lot or improved property cited as vacant and unsafe or unfit for habitation or other authorized use on a housing or building violation notice; and

  (2) the total amount of liens for unpaid taxes on the property exceeds the lesser of the total value of the property as last determined by the Department or as determined by an appraisal report prepared not more than 6 months before the filing of a complaint under this section by a real estate appraiser who is licensed under Title 16 of the Business Occupations and Professions Article.

(b)

  (1) A county or municipal corporation may authorize by law an in rem foreclosure in accordance with this part.

  (2) A law that authorizes an in rem foreclosure shall:

    (i) state the date after which real property may be subject to in rem foreclosure under this part;

    (ii) establish criteria for designating real property to be foreclosed under this part;

    (iii) authorize the county or municipal corporation to file a complaint for an in rem foreclosure under this part; and

    (iv) include administrative rules and procedures necessary to carry out an in rem foreclosure under this part.

(c)

  (1) Subject to subsection (d) of this section, a county or municipal corporation may authorize, by law, the sale of real property after an in rem foreclosure and designate real property to be sold under this part.

  (2) A law that authorizes a sale of real property after an in rem foreclosure shall:

    (i) state the date after which the real property may be subject to sale after an in rem foreclosure under this part;

    (ii) establish criteria for designating real property to be sold under this part; and

    (iii) include administrative rules and procedures necessary to carry out a sale under this part.

(d) Only real property that consists of a vacant lot or improved property cited as vacant and unsafe or unfit for habitation or other authorized use on a housing or building violation notice may be sold under this part.

#### Section 14-875

(a) A county or municipal corporation may file a complaint for an in rem foreclosure action in accordance with this part.

(b) The county or municipal corporation may not file a complaint for an in rem foreclosure action unless:

  (1) the tax on the real property has been delinquent for at least 6 months; and

  (2) the right to appeal the notice of the property as vacant and unsafe or unfit has tolled.

(c) All taxes shall:

  (1) be included in the foreclosure action; and

  (2) cease to be a lien against the real property if a judgment is entered foreclosing the existing interests of all interested parties in the real property.

(d) The county or municipal corporation shall:

  (1) file the complaint for an in rem foreclosure in the circuit court of the county where the real property is located; and

  (2) serve the complaint on each interested party in accordance with the Maryland Rules.

(e) The complaint for an in rem foreclosure shall include:

  (1) the identity of the county or municipal corporation on behalf of which the complaint is filed;

  (2) the name and address of the county or municipal corporation;

  (3) a description of the real property as it appears in the county land records;

  (4) the tax identification number of the real property;

  (5) a statement that the taxes are delinquent at the time of the filing;

  (6) the amount of taxes that are delinquent as of the date of filing;

  (7) the names and last known addresses of all interested parties in the real property and, if applicable, a statement that the address of a particular interested party in the real property is unknown;

  (8) a statement that the real property is a vacant lot or improved property cited as vacant and unsafe or unfit for habitation or other authorized use on a housing or building violation notice;

  (9) copies of any violation notice cited under paragraph (8) of this subsection;

  (10) a request that the circuit court not schedule a hearing on the complaint until 30 days after the date that the complaint is filed; and

  (11) a request that the circuit court enter a judgment that forecloses the existing interests of all interested parties in the real property and orders ownership of the real property to be transferred to the county or municipal corporation.

(f) A complaint for an in rem foreclosure may be amended to include all taxes that become delinquent after the commencement of the in rem foreclosure action.

(g)

  (1) Subject to paragraph (2) of this subsection, an interested party has the right to cure the delinquent taxes and liens on the real property by paying all past due fees, payments, and penalties at any time before the entry of the foreclosure judgment.

  (2) The right to cure the delinquent taxes and liens on the real property extinguishes once the foreclosure judgment is entered.

#### Section 14-876

(a) A circuit court may not set a hearing for an in rem foreclosure until 30 days after the complaint for an in rem foreclosure is filed.

(b) At the hearing, any interested party shall have the right to be heard and to contest the delinquency of the taxes and the adequacy of the proceedings.

(c) If the circuit court finds that the county or municipal corporation sent notice and a copy of the complaint to each interested party in accordance with Sec. 14-875(d) of this subtitle and that the information set forth in the complaint is accurate, the court shall:

  (1) enter a judgment that:

    (i) proper notice has been provided to all interested parties; and

    (ii) the real property is a vacant lot or an improved property cited as vacant and unsafe or unfit for habitation or other authorized use on a housing or building violation notice; and

  (2) order that ownership of the real property be transferred to the county or municipal corporation on behalf of which the complaint was filed.

(d)

  (1) The county or municipal corporation shall record a judgment under subsection (c) of this section in the land records of the county.

  (2) The title acquired in an in rem foreclosure 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 foreclosed unless a different title is specified in the judgment entered.

  (3) A judgment in an action under this part is binding and conclusive, regardless of legal disability, on:

    (i) all persons, known and unknown, who were parties to the action and who had a claim to the property, whether present or future, vested or contingent, legal or equitable, or several or undivided; and

    (ii) all persons who were not parties to the action and had a claim to the property that was not recorded at the time that the action was commenced.

#### Section 14-879

(a)

  (1) The Department shall conduct an annual survey of each county that conducts a tax sale under Part III of this subtitle to obtain the information specified in this section.

  (2) Each county shall provide the Department all the information specified in this section on the form that the Department provides.

  (3) The Department may not disburse or authorize the disbursement of any funds to a county under this article if the county has not provided all the information specified in this section.

  (4) Each county shall maintain a record of the information specified in this section for at least 3 years after the date of a tax sale.

(b)

  (1) The Department shall obtain the data specified in paragraph (2) of this subsection concerning the following categories of properties subject to sale under Part III of this subtitle:

    (i) properties that are advertised for sale in the first notice required to be published under Sec. 14-813 of this subtitle;

    (ii) properties offered for sale;

    (iii) properties offered for sale that are subject to liens for water or sewer services only;

    (iv) properties offered for sale that are sold;

    (v) properties for which there is no private purchaser and the county obtains the tax sale certificate in accordance with Sec. 14-824 of this subtitle;

    (vi) properties that are redeemed before foreclosure;

    (vii) properties that are subject to foreclosure by the county; and

    (viii) properties for which the right of redemption has been foreclosed by a private holder of a tax sale certificate.

  (2) For each of the categories of properties specified in paragraph (1) of this subsection, the Department shall obtain the following data for the second immediately preceding taxable year:

    (i) the total number of properties;

    (ii) the total lien amount for all properties;

    (iii) the average lien amount for all properties; and

    (iv) for each of the data categories specified in items (i) through (iii) of this paragraph, disaggregated data for properties that are owned by a homeowner as defined in Sec. 9-105 of this article.

(c) The Department shall obtain the following information concerning each county's tax sale process for the second immediately preceding taxable year:

  (1) each type of charge that the county collects through its tax sale process, including property taxes, water and sewer charges, environmental charges, and any other local government charges;

  (2) the total number of real property tax accounts in the county during the second immediately preceding taxable year and the total number of real property tax accounts that became delinquent during the second immediately preceding taxable year;

  (3) the total amount of interest on overdue county real property taxes collected during the second immediately preceding taxable year;

  (4) the length of time the tax on a property is required to be overdue before the county begins the process to sell the property under Part III of this subtitle;

  (5) how frequently the county conducts a tax sale and the time of year when the tax sale occurs;

  (6) whether the county conducts tax sales on behalf of municipal corporations in the county and, if applicable, which municipal corporations;

  (7) the rate of interest the county charges on overdue property taxes under Sec. 14-603 of this title;

  (8) the rate of redemption interest a property owner is required to pay to redeem a property after a tax sale under Sec. 14-820 of this subtitle;

  (9) the minimum threshold amount of unpaid taxes on a residential property that will cause the county to put the property in tax sale under Sec. 14-811(b) of this subtitle;

  (10) regarding bid balance money in excess of the amount required for the payment of taxes, interest, penalties, and costs of the sale of a property:

    (i) the total aggregate amount of all bid balance money held by the county in a special fund pending distribution to property owners under Sec. 14-819(a) of this subtitle;

    (ii) the total aggregate amount of bid balance money distributed to property owners under Sec. 14-819(a) of this subtitle; and

    (iii) the total aggregate amount of bid balance money transferred to the county under Sec. 14-819(b) and (c) of this subtitle;

  (11) whether the county has established a County Tax Sale Ombudsman under Sec. 2-112(e) of this article; and

  (12) a copy of the separate insert required to be mailed to property owners under Sec. 14-812(b) of this subtitle.

(d) The Department shall obtain:

  (1) the number of counties and municipal corporations that have withheld from sale under Sec. 14-811(h) of this subtitle a dwelling owned by a homeowner who is low-income, at least 65 years old, or disabled;

  (2) the eligibility criteria used by each county and municipal corporation to withhold a dwelling from sale under Sec. 14-811(h) of this subtitle; and

  (3) the number of dwellings withheld from sale by each county and municipal corporation under Sec. 14-811(h) of this subtitle.

#### Section 14-880

(a) Each year, the Department shall issue a report that includes:

  (1) an analysis and summary of the information collected through the survey under Sec. 14-879 of this subtitle; and

  (2) the following information concerning the activities of the State Tax Sale Ombudsman established under Sec. 2-112 of this article in the preceding taxable year:

    (i) the number of homeowners who contacted the Ombudsman;

    (ii) the number of homeowners assisted by the Ombudsman to apply for each of the tax credits under Sec. 9-104 or Sec. 9-105 of this article;

    (iii) the number of homeowners assisted by the Ombudsman to apply for other discount programs or public benefits and a brief summary of those programs and benefits;

    (iv) the number of homeowners referred by the Ombudsman to legal services, housing counseling, and other social services, and a brief summary of those services;

    (v) the number of homeowners enrolled in the Homeowner Protection Program under Part VII of this subtitle;

    (vi) a summary of the implementation of the Homeowner Protection Program under Part VII of this subtitle, including outreach to homeowners under Sec. 14-886(d) of this subtitle;

    (vii) the total number of persons making a voluntary donation to the Homeowner Protection Program under Part VII of this subtitle through the website under Sec. 4-201.1 of this article;

    (viii) the total amount of voluntary donations made to the Homeowner Protection Program under Part VII of this subtitle through the website under Sec. 4-201.1 of this article;

    (ix) the balance of funds in the Homeowner Protection Fund established under Sec. 14-891 of this subtitle as of the date of the report, and a detailed accounting of revenues received by the Homeowner Protection Fund and expenditures made from the Homeowner Protection Fund in the preceding taxable year;

    (x) any statutory or administrative changes the Ombudsman recommends to improve the administration of the Homeowner Protection Program under Part VII of this subtitle; and

    (xi) any other relevant information.

(b) On or before November 15 each year, the Department shall:

  (1) publish the report required under subsection (a) of this section on the Department's website; and

  (2) submit the report required under subsection (a) of this section, in accordance with Sec. 2-1257 of the State Government Article, to the Senate Budget and Taxation Committee and the House Committee on Ways and Means.

#### Section 14-883

(a) In this part the following words have the meanings indicated.

(b) "Combined income" means the combined Maryland adjusted gross income of all individuals who actually reside in a dwelling except an individual who:

  (1) is a dependent of the homeowner under Sec. 152 of the Internal Revenue Code; or

  (2) pays a reasonable amount for rent or room and board.

(c) "Dwelling" has the meaning stated in Sec. 9-105 of this article.

(d) "Homeowner" means:

  (1) a homeowner as defined in Sec. 9-105 of this article; or

  (2) if a homeowner as defined in Sec. 9-105 of this article is deceased:

    (i) the estate of the homeowner;

    (ii) the personal representative of the homeowner; or

    (iii) an heir or legatee of the homeowner who is entitled to inherit the homeowner's dwelling.

(e) "Ombudsman" means the State Tax Sale Ombudsman established under Sec. 2-112 of this article.

(f) "Program" means the Homeowner Protection Program established under this part.

(g) "Tax" has the meaning stated in Sec. 14-801 of this subtitle.

#### Section 14-884

(a) There is a Homeowner Protection Program administered by the Ombudsman in the Department.

(b) The purpose of the Program is to divert vulnerable homeowners from the private tax lien sale process under Part III of this subtitle into an alternative program with the primary purpose of:

  (1) minimizing tax collection costs to homeowners;

  (2) assisting homeowners to pay their taxes; and

  (3) allowing homeowners to remain in their homes.

#### Section 14-885

(a)

  (1) To be eligible for the Program a homeowner shall:

    (i) reside in a dwelling that has an assessed value of $450,000 or less; and

    (ii) have a combined income of $60,000 or less.

  (2) The Department may establish, by regulation, additional eligibility criteria for enrollment in the Program.

(b)

  (1) The Department shall establish, by regulation, a process to:

    (i) give priority for enrollment in the Program to homeowners who are:

      (1) at least 60 years old;

      (2) currently receiving disability benefits from the federal Social Security Disability Insurance program or the federal Supplemental Security Income program; or

      (3) experiencing a documented terminal illness or medical hardship; and

    (ii) ensure that homeowners are enrolled in the Program who reside in each county in the State.

  (2) The regulation established under paragraph (1) of this subsection shall include the definitions of "terminal illness" and "medical hardship" adopted under Sec. 14-811 of this subtitle.

(c) On or before June 30 each year, the Department shall determine the maximum number of homeowners who may be enrolled in the Program in the next succeeding fiscal year based on the amount of funding available for the Program in the Homeowner Protection Fund established under Sec. 14-891 of this subtitle.

(d) The number of homeowners enrolled in the Program in a fiscal year may not exceed the maximum number determined by the Department under subsection (c) of this section.

#### Section 14-886

(a) A homeowner shall submit an application to the Department to be enrolled in the Program.

(b) A homeowner may submit an application for the Program online or by mail.

(c) The Ombudsman shall prioritize maximizing enrollment in the Program by:

  (1) prominently advertising the Program and making applications available on the Ombudsman's website;

  (2) collaborating with local governments, community organizations, and public and private providers of social services and benefits to raise awareness of the Program and disseminate applications;

  (3) strongly encouraging all homeowners who meet the eligibility requirements to enroll in the Program; and

  (4) screening each homeowner who contacts the Ombudsman for eligibility for the Program and, if the homeowner appears to be eligible, strongly encouraging the homeowner to complete an application for the Program.

(d)

  (1) It is the intent of the General Assembly that:

    (i) at least 2% of the balance in the Homeowner Protection Fund established under Sec. 14-891 of this subtitle be spent each year to conduct outreach to homeowners in tax sale to encourage the homeowners to enroll in the Program;

    (ii) the outreach consist of:

      (1) live telephone calls to homeowners whenever practicable; or

      (2) if live telephone calls are not practicable, methods of contacting homeowners other than sending information by mail; and

    (iii) priority be given to contacting homeowners as soon as possible after their dwellings are sold at tax sale.

  (2) The Ombudsman may:

    (i) conduct outreach to homeowners using State employees and resources; or

    (ii) contract with a private vendor to conduct outreach to homeowners.

  (3) At the request of the Ombudsman:

    (i) promptly after each county tax sale, the collector shall provide the Ombudsman with the list of homeowners whose dwellings were sold at the tax sale;

    (ii) notwithstanding Sec. 13-202 of the Tax - General Article, the Comptroller shall provide the telephone number of a homeowner if the homeowner included the homeowner's telephone number on a tax return filed with the Comptroller; and

    (iii) any other State or local government agency shall promptly provide any information required to conduct outreach under this subsection.

  (4) The Ombudsman may obtain information from any reliable private source to conduct outreach under this subsection.

(e) The Ombudsman shall cancel the enrollment of a homeowner in the Program if:

  (1) the homeowner submits a request to the Ombudsman to withdraw from the Program;

  (2) the homeowner submitted false information in the homeowner's application for enrollment in the Program; or

  (3) the Ombudsman determines that the homeowner is not acting in good faith to pay the taxes due.

(f) If the Ombudsman cancels the enrollment of a homeowner in the Program, the Ombudsman shall send a notice of the cancellation to the homeowner that includes the reasons for cancellation.

(g) A homeowner's enrollment in the Program ends on the earliest of:

  (1) the date the homeowner pays the full amount of the taxes owed to the Department;

  (2) the date that is 3 years after the date the homeowner first enrolled in the Program; or

  (3) the date the homeowner's enrollment in the Program is canceled under subsection (e) of this section.

#### Section 14-887

(a) If a homeowner is first enrolled in the Program before the lien on the homeowner's dwelling is sold at tax sale:

  (1) the Department shall pay the county or municipal corporation the full amount of the tax lien and assume exclusive responsibility for collecting the outstanding tax debt; and

  (2) the county or municipal corporation shall withhold the dwelling from the next tax sale.

(b) If a homeowner is first enrolled in the Program after the lien on the homeowner's dwelling is sold at tax sale, the Department shall pay the holder of the tax sale certificate the full amount required to redeem the certificate, including interest and expenses of the certificate holder, and assume exclusive responsibility for collecting the outstanding tax debt.

(c) After a homeowner is enrolled in the Program:

  (1) the Department shall pay the county or municipal corporation the full amount of any tax lien that subsequently becomes due on the dwelling during the entire period that the homeowner is enrolled in the Program and assume exclusive responsibility for collecting the outstanding tax debt; and

  (2) the county or municipal corporation shall withhold the dwelling from tax sale during the entire period that the homeowner is enrolled in the Program.

(d) After the Department purchases a tax lien on the dwelling of a homeowner under this section, the homeowner's outstanding tax debt:

  (1) is owed to the Department; and

  (2) is not owed to any other person.

(e) If a homeowner's enrollment in the Program is canceled under Sec. 14-886(e) of this subtitle, the Department shall retain a lien on the homeowner's dwelling for the taxes owed to the Department but may not initiate any collection efforts or otherwise act to enforce the lien until ownership of the dwelling is transferred.

#### Section 14-888

(a) For each homeowner enrolled in the Program, the Ombudsman shall make intensive efforts to:

  (1) determine why the homeowner has not paid the taxes due; and

  (2) provide appropriate assistance to help the homeowner pay the taxes due and retain the dwelling.

(b) The Ombudsman shall communicate with each homeowner enrolled in the Program through whatever method is most effective, which may include:

  (1) easy-to-understand mailings;

  (2) phone calls;

  (3) notices posted on the dwelling; and

  (4) when necessary or appropriate, an in-person visit.

(c) The Ombudsman may assist a homeowner enrolled in the Program by:

  (1) helping the homeowner to apply for existing tax credits and public and private programs and benefits; or

  (2) entering into an installment payment plan with the homeowner to pay the taxes due.

(d) The Ombudsman may forgive all or part of the tax debt owed to the Department by a homeowner enrolled in the Program who faces particular hardship or has a special need.

(e) The Ombudsman shall develop a process to allow a homeowner enrolled in the Program to designate a family member or another representative of the homeowner to communicate and work with the Ombudsman on the homeowner's behalf.

#### Section 14-889

(a) The Department may not charge interest on unpaid taxes owed to the Department.

(b) The Department may not impose any fees or costs on a homeowner in addition to the taxes owed.

#### Section 14-890

(a) In this section, "interested party" means:

  (1) the person who last appears as owner of the dwelling on the collector's tax roll;

  (2) a mortgagee of the dwelling or assignee of a mortgage of record;

  (3) a holder of a beneficial interest in a deed of trust recorded against the dwelling;

  (4) a taxing agency that has the authority to collect tax on the dwelling; or

  (5) any person having an interest in the dwelling whose identity and address are:

    (i) reasonably ascertainable from the county land records; or

    (ii) revealed by a full title search consisting of at least 50 years.

(b) The Department may conduct an in rem foreclosure and sale of a dwelling of a homeowner formerly enrolled in the Program in accordance with this section.

(c) The Department may foreclose on and sell a dwelling of a homeowner formerly enrolled in the Program only if:

  (1) at least 3 years have elapsed since the homeowner first enrolled in the Program; and

  (2) all reasonable efforts to assist the homeowner to pay the taxes owed to the Department have failed.

(d) To initiate an in rem foreclosure action the Department shall:

  (1) file a complaint for an in rem foreclosure in the circuit court of the county where the dwelling is located; and

  (2) within 5 days after filing the complaint, send notice and a copy of the complaint to each interested party by first-class mail and certified mail, postage prepaid, return receipt requested, bearing a postmark from the United States Postal Service.

(e) All taxes shall:

  (1) be included in the foreclosure action; and

  (2) cease to be a lien against the dwelling if a judgment is entered foreclosing the existing interests of all interested parties in the dwelling.

(f) The complaint for an in rem foreclosure shall include:

  (1) the name and address of the Department;

  (2) a description of the dwelling as it appears in the county land records;

  (3) the tax identification number of the dwelling;

  (4) a statement that the taxes are delinquent at the time of the filing;

  (5) the amount of taxes that are delinquent as of the date of the filing;

  (6) the names and last known addresses of all interested parties in the dwelling and, if applicable, a statement that the address of a particular interested party in the dwelling is unknown; and

  (7) a request that the circuit court enter a judgment that forecloses the existing interests of all interested parties in the dwelling and orders the dwelling to be sold at public auction.

(g) A complaint for an in rem foreclosure may be amended to include all taxes that become delinquent after the commencement of the in rem foreclosure action.

(h)

  (1) Subject to paragraph (2) of this subsection, an interested party has the right to cure the delinquent taxes on the dwelling by paying all past due taxes at any time before the entry of the foreclosure judgment.

  (2) The right to cure the delinquent taxes on the dwelling is extinguished once the foreclosure judgment is entered.

(i) A circuit court may not set a hearing for an in rem foreclosure until 30 days after the complaint for an in rem foreclosure is filed.

(j) At the hearing, any interested party shall have the right to be heard and to contest the delinquency of the taxes and the adequacy of the proceedings.

(k) If the circuit court finds that the Department sent notice and a copy of the complaint to each interested party and that the information set forth in the complaint is accurate, the court shall:

  (1) enter a judgment that proper notice has been provided to all interested parties; and

  (2) order that the dwelling be sold at public auction.

(l)

  (1) After entry of judgment under subsection (k) of this section, the Department shall sell the dwelling at public auction in accordance with the Maryland Rules.

  (2) The dwelling may not be sold until at least 45 days after the entry of judgment.

(m) The minimum bid for the sale of the dwelling shall be based on the fair market value of the dwelling, as determined by the Department.

(n)

  (1) The dwelling shall be sold to the person making the highest bid.

  (2) The person making the highest bid shall pay the full bid amount to the Department.

  (3) If the minimum bid is not made or exceeded, the Department may bid the minimum bid price and purchase the real property.

(o)

  (1) The Department shall deposit any amount by which the highest bid exceeds the amount of taxes due on the dwelling in an escrow account.

  (2) The circuit court shall distribute the funds deposited into the escrow account to the interested parties in the order of priority of the interests of the interested parties.

(p) After a sale, the Department shall file a notice informing the circuit court of the sale and stating the date of the sale, the sale price, and the identity of the purchaser.

(q) A sale of a dwelling under this section is final and binding on the maker of the highest bid.

(r)

  (1) The title acquired in an in rem foreclosure 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 foreclosed unless a different title is specified in the judgment entered.

  (2) A judgment in an action under this section is binding and conclusive, regardless of legal disability, on:

    (i) all persons, known and unknown, who were parties to the action and who had a claim to the property, whether present or future, vested or contingent, legal or equitable, or several or undivided; and

    (ii) all persons who were not parties to the action and had a claim to the property that was not recorded at the time that the action was commenced.

(s) A homeowner or any interested party in a homeowner's dwelling may not:

  (1) raise as a defense to a foreclosure action under this section that the Department failed to make sufficient efforts to assist the homeowner under Sec. 14-888(a) and (b) of this subtitle or subsection (c) of this section; or

  (2) take any legal action against the Department on the basis that the Department failed to make sufficient efforts to assist the homeowner under Sec. 14-888(a) and (b) of this subtitle or subsection (c) of this section.

(t) The Department is not liable for any environmental or other violation related to the dwelling of a homeowner enrolled or formerly enrolled in the Program unless the Department purchases the dwelling under subsection (n)(3) of this section.

#### Section 14-891

(a) In this section, "Fund" means the Homeowner Protection Fund.

(b) There is a Homeowner Protection Fund.

(c) The purpose of the Fund is to finance the Program.

(d) The Department shall administer the Fund.

(e)

  (1) The Fund is a special, nonlapsing fund that is not subject to Sec. 7-302 of the State Finance and Procurement Article.

  (2) The State Treasurer shall hold the Fund separately, and the Comptroller shall account for the Fund.

(f) The Fund consists of:

  (1) tax and interest payments made to the Department by homeowners enrolled in the Program;

  (2) voluntary donations to the Fund under Sec. 4-201.1 of this article;

  (3) money appropriated in the State budget to the Fund;

  (4) money paid by county governments under subsection (h) of this section;

  (5) interest earnings; and

  (6) any other money from any other source accepted for the benefit of the Fund.

(g) For each fiscal year, the Governor shall include in the annual budget bill an appropriation of $250,000 of the interest on overdue State property tax to the Fund.

(h)

  (1) For each fiscal year, county governments shall collectively pay $500,000 to the Fund.

  (2) The amount required to be paid under paragraph (1) of this subsection shall be allocated among the counties based on the number of real property accounts in each county as a percentage of the total number of real property accounts statewide as of July 1 of the preceding fiscal year.

  (3) The amount paid by each county under this subsection shall be derived from interest on overdue county property tax.

  (4) Each county shall remit to the Department the county's share of the amount required under paragraph (1) of this subsection on or before the first day of each fiscal year.

(i)

  (1) The Fund may be used only for any expenses associated with the Program.

  (2) The Fund may not be used for any expenses of the office of the State Tax Sale Ombudsman that are not directly related to the Program.

(j)

  (1) The State Treasurer shall invest the money of the Fund in the same manner as other State money may be invested.

  (2) Any interest earnings of the Fund shall be credited to the Fund.

(k) Expenditures from the Fund may be made only in accordance with the State budget.

(l) The Fund is the exclusive source of funding for the Program.

#### Section 14-894

(a)

  (1) In this section the following words have the meanings indicated.

  (2) "Interested party" means any person having an interest in a vacant or nuisance property:

    (i) who last appears as owner of the property on the collector's tax roll;

    (ii) who is a mortgagee of the property or assignee of a mortgage of record;

    (iii) who is a holder of a beneficial interest in a deed of trust recorded against the property;

    (iv) who is a taxing agency that has the authority to collect tax on the property; or

    (v) whose identity and address are:

      (1) reasonably ascertainable from the county land records; or

      (2) revealed by a full title search consisting of at least 50 years.

  (3) "Tax" has the meaning stated in Sec. 14-801 of this subtitle.

  (4) "Vacant or nuisance property" means a vacant lot or improved property determined to be a vacant property or a nuisance property under the Baltimore City Building Code.

  (5) "Value" means that the total amount of liens for unpaid taxes on a property does not exceed the lesser of the total value of the property as last determined by the Department or as determined by an appraisal report prepared not more than 6 months before the filing of a complaint under this section by a real estate appraiser who is licensed under Title 16 of the Business Occupations and Professions Article.

(b)

  (1) In accordance with this section, Baltimore City may authorize, by law, an in rem foreclosure of vacant or nuisance property on which the taxes are in arrears.

  (2) A law that authorizes an in rem foreclosure of vacant or nuisance property shall:

    (i) state the date after which real property may be subject to in rem foreclosure;

    (ii) establish criteria for designating real property to be foreclosed under this section;

    (iii) authorize Baltimore City to file a complaint for an in rem foreclosure; and

    (iv) include administrative rules and procedures necessary to carry out an in rem foreclosure of vacant or nuisance property.

(c) Baltimore City may not file a complaint for an in rem foreclosure action under this section unless:

  (1) the taxes on the real property have been delinquent for at least 6 months; and

  (2) the right to appeal the notice of the property as vacant or nuisance property has tolled.

(d) To initiate an in rem foreclosure action, Baltimore City shall:

  (1) file a complaint for an in rem foreclosure in the Circuit Court for Baltimore City; and

  (2) serve the complaint to each interested party in accordance with the Maryland Rules.

(e) All taxes shall:

  (1) be included in the foreclosure action; and

  (2) cease to be a lien against the property if a judgment is entered foreclosing the existing interests of all interested parties in the property.

(f) The complaint for an in rem foreclosure shall include:

  (1) the name and address of the appropriate agency of Baltimore City;

  (2) a description of the property as it appears in the land records;

  (3) the tax identification number of the property;

  (4) a statement that the taxes are delinquent at the time of the filing;

  (5) the amount of taxes that are delinquent as of the date of the filing;

  (6) the names and last known addresses of all interested parties in the property and, if applicable, a statement that the address of a particular interested party in the property is unknown;

  (7) a statement that the real property is a vacant or nuisance property;

  (8) copies of any violation notice cited under item (7) of this subsection; and

  (9) a request that the circuit court enter a judgment that forecloses the existing interests of all interested parties in the real property.

(g) A complaint for an in rem foreclosure may be amended to include all taxes that become delinquent after the commencement of the in rem foreclosure action.

(h)

  (1) Subject to paragraph (2) of this subsection, an interested party has the right to cure the delinquent taxes on the property by paying all past due taxes at any time before the entry of the foreclosure judgment.

  (2) The right to cure the delinquent taxes on the property is extinguished once the foreclosure judgment is entered.

(i) The circuit court may not set a hearing for an in rem foreclosure until 30 days after the complaint for an in rem foreclosure is filed.

(j) At the hearing, any interested party shall have the right to be heard and to contest the delinquency of the taxes and the adequacy of the proceedings.

(k) If the circuit court finds that the complaint was served on each interested party and that the information set forth in the complaint is accurate, the court shall:

  (1) enter a judgment that:

    (i) proper notice has been provided to all interested parties;

    (ii) the real property is a vacant or nuisance property; and

    (iii) forecloses the existing interests of all interested parties in the real property; and

  (2) order that ownership of the real property be transferred to Baltimore City.

(l) Baltimore City shall record a judgment under subsection (k) of this section in the land records.

(m)

  (1) If property subject to foreclosure under this section has value, Baltimore City shall:

    (i) sell the property at public auction in accordance with subsection (n) of this section; or

    (ii) compensate the interested parties in the property in accordance with subsection (o) of this section.

  (2) If property subject to foreclosure under this section does not have value, Baltimore City may retain title to the property without providing compensation to the interested parties.

(n)

  (1) A sale of property subject to foreclosure under this section shall be conducted at public auction in accordance with the Maryland Rules.

  (2) Property may not be sold until at least 45 days after the entry of judgment of foreclosure.

  (3) The minimum bid for the sale of the property shall be the total amount of liens for unpaid taxes on the property.

  (4) The property shall be sold to the person making the highest bid.

  (5) The person making the highest bid shall pay the full bid amount to Baltimore City.

  (6) If the minimum bid is not made or exceeded, Baltimore City may bid the minimum bid price and purchase the property.

  (7) Baltimore City shall deposit in an escrow account any amount by which the highest bid exceeds:

    (i) the amount of taxes due on the property; and

    (ii) the value of all improvements made on the property and all costs incurred with respect to development of the property before the sale of the property by Baltimore City.

  (8) The circuit court shall distribute the funds deposited into the escrow account to the interested parties in the order of priority of the interests of the interested parties.

  (9) After a sale, Baltimore City shall file a notice informing the circuit court of the sale and stating the date of the sale, the sale price, and the identity of the purchaser.

  (10) A sale of a property under this section is final and binding on the maker of the highest bid.

(o)

  (1) To compensate the interested parties in a property that has value without selling the property, Baltimore City shall:

    (i) obtain an appraisal of the property by a real estate appraiser who is licensed under Title 16 of the Business Occupations and Professions Article; and

    (ii) deposit in an escrow account the amount by which the appraisal exceeds the amount of taxes due on the property.

  (2) The circuit court shall distribute the funds deposited into the escrow account to the interested parties in the order of priority of the interests of the interested parties.

(p)

  (1) The title acquired in an in rem foreclosure 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 foreclosed unless a different title is specified in the judgment entered.

  (2) A judgment in an action under this section is binding and conclusive, regardless of legal disability, on:

    (i) all persons, known and unknown, who were parties to the action and who had a claim to the property, whether present or future, vested or contingent, legal or equitable, or several or undivided; and

    (ii) all persons who were not parties to the action and had a claim to the property that was not recorded at the time that the action was commenced.

(q)

  (1) Except as provided in paragraph (2) of this subsection, a court may not reopen a judgment rendered in an in rem foreclosure proceeding in accordance with this section except on the ground of lack of jurisdiction or fraud in the conduct of the proceedings to foreclose.

  (2) A court may not reopen any judgment under paragraph (1) of this subsection on the ground of constructive fraud in the conduct of the proceedings to foreclose unless an application to reopen a judgment rendered is filed within 1 year after the date of the judgment.

(r) A plaintiff in an action to reopen an in rem foreclosure judgment under this section shall:

  (1) except as provided in subsection (q)(2) of this section, file the action within 3 years after the issuance of the in rem foreclosure judgment;

  (2) pay all taxes due on the property before filing the action; and

  (3) within 30 days after filing the action, submit evidence to the court that the plaintiff has obtained a bond equal to the reasonable value of the property.

(s) If an in rem foreclosure judgment of the court is set aside, the amount required to redeem is equal to the sum of:

  (1) the amount required by this subtitle; and

  (2) the reasonable value, at the date the judgment is set aside, of all improvements made on the property and all costs incurred with respect to development of the property by the purchaser and the purchaser's successors in interest.

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Md. Code Ann., Tax-Prop. (as displayed at mgaleg.maryland.gov, October 16, 2026)