# COMAR Title 18 — Department of Assessments and Taxation

## Subtitle 15 — Ground Rents

### Chapter 01 — Redemption

**Authority:** Real Property Article, §8-804; Tax-Property Article, §2-201; Annotated Code of Maryland

**Administrative History:** Effective date: March 15, 2004 (31:5 Md. R. 451)

**Administrative History:** Regulation .01 amended effective December 6, 2018 (45:24 Md. R. 1162)

**Administrative History:** Regulation .02 amended effective December 6, 2018 (45:24 Md. R. 1162); February 24, 2020 (47:4 Md. R. 263)

**Administrative History:** Regulation .03 amended effective December 6, 2018 (45:24 Md. R. 1162)

**Administrative History:** Regulation .06A amended effective February 24, 2020 (47:4 Md. R. 263)

**Administrative History:** Chapter revised effective January 24, 2022 (49:2 Md. R. 78)

#### Regulation .01 Scope.

*COMAR 18.15.01.01*

This chapter applies to the redemption of reversions in leases under Real Property Article, §8-804, Annotated Code of Maryland, filed on or after January 1, 2004.

#### Regulation .02 Documentation of Lease by Tenant.

*COMAR 18.15.01.02*

To redeem a reversion in a lease under Real Property Article, §8-804, Annotated Code of Maryland, a tenant shall file with the Department of Assessments and Taxation:

A. A copy of:

  (1) The publicly recorded lease creating the leasehold on the property and ground rent interest of the landlord; or

  (2) Any publicly recorded documents establishing the existence of the lease;

B. A copy of the publicly recorded deed, deed of assignment, or other document of transfer by which the current tenant received an interest in the property;

C. An application form prescribed by the Department which includes, but is not limited to, the:

  (1) Tenant's name and address;

  (2) Address of the property subject to the ground rent;

  (3) Property account number in the Department's records for the subject property; and

  (4) Tenant's affidavit certifying that the requirements of Real Property Article, §8-804, Annotated Code of Maryland, have been met;

D. If the tenant has received a bill for ground rent or other communication from the ground lease holder regarding the ground rent during the 3 years immediately before the filing of the documentation required by this regulation:

  (1) A copy of the correspondence from the tenant notifying the landlord of tenant's intention to redeem the ground rent; and

  (2) Proof of mailing from the United States Postal Service of the notice to the landlord by certified mail; and

E. Pay any fees required by Corporations and Associations Article, §1-203, and Real Property Article, §8-804, Annotated Code of Maryland.

#### Regulation .03 Calculation of Redemption Amount.

*COMAR 18.15.01.03*

A. The Department shall:

  (1) Calculate the ground rent redemption amount as if no ground lease payments have been made by or on behalf of the tenant to the ground lease holder during the 3 years immediately before the filing of the documentation required by Regulation .02 of this chapter; and

  (2) Reduce the ground rent redemption amount if the tenant provides proof that ground lease payments have been made by or on behalf of the tenant to the ground lease holder during the 3 years immediately before the filing of the documentation required by Regulation .02 of this chapter.

B. If a tenant is unable to document when the ground lease was originally executed or created, the Department shall calculate the redemption amount using the formula set forth in Real Property Article, §8-804(b)(2)(i)3, Annotated Code of Maryland.

#### Regulation .04 Documentation of Claimant's Interest.

*COMAR 18.15.01.04*

To file a claim under Real Property Article, §8-804, Annotated Code of Maryland, a claimant shall:

A. File a copy of the publicly recorded documents establishing the claimant as the current landlord to the satisfaction of the Department;

B. If the claimant is the landlord and a natural person, submit a notarized affidavit acknowledged under oath to the

C. If the claimant is the landlord and an entity, provide proof of identity and current existence, which may include documents on file in public records;

D. If the claimant is an heir or devisee of the landlord, file:

  (1) Copies of the will, final probate orders, and accounting statements or other publicly recorded document showing that the claimant is entitled to the interest of the landlord; and

  (2) Identification of the type described in §B or C of this regulation;

E. If the claimant is a creditor of the landlord, provide:

  (1) Satisfactory proof of any lien on the ground rent interest; and

  (2) Identification of the type described in §B or C of this regulation; and

F. Pay any fees required by Corporations and Associations Article, §1-203, and Real Property Article, §8-804, Annotated Code of Maryland.

#### Regulation .05 Internet Posting.

*COMAR 18.15.01.05*

A. The Department will place on its website a link from the real property system to a ground rents filing system showing each property for which an application for ground rent redemption has been made.

B. If a ground rent redemption filing exists, the ground rents filing system will provide information showing that a redemption:

  (1) Application has been filed;

  (2) Certificate has been issued; and

  (3) Payment has been authorized by the Department.

#### Regulation .06 Issuance of Redemption Certificates.

*COMAR 18.15.01.06*

The Department will issue the ground rent redemption certificate:

A. 90 days after the posting of the notice of the application on the Department's website; and

B. After the redemption amount has been paid by the tenant to the Department.

#### Regulation .07 Payment Methods.

*COMAR 18.15.01.07*

A. The tenant shall pay the redemption amount to the Department either by certified check or money order unless the tenant is a government or subdivision of a government.

B. The Department will authorize a redemption payment to the State Treasurer and a check payment will be mailed by first class mail to the claimant.

### Chapter 02 — Registration

**Authority:** Real Property Article, §8-710; Tax-Property Article, §2-201; Annotated Code of Maryland

**Administrative History:** Effective date: September 20, 2010 (37:19 Md. R. 1285)

**Administrative History:** Regulation .01B amended effective December 6, 2018 (45:24 Md. R. 1163)

**Administrative History:** Regulation .05 amended effective December 6, 2018 (45:24 Md. R. 1163)

#### Regulation .01 Definitions.

*COMAR 18.15.02.01*

A. In this chapter, the following terms have the meanings indicated.

B. Terms Defined.

  (1) “Current ground rent deed of record” has the meaning stated in Real Property Article, §8-701(b), Annotated Code of Maryland.

  (2) “Department” has the meaning stated in Real Property Article, §8-701(c), Annotated Code of Maryland.

  (3) “Ground lease” has the meaning stated in Real Property Article, §8-701(d), Annotated Code of Maryland.

  (4) “Ground lease holder” has the meaning stated in Real Property Article, §8-701(e), Annotated Code of Maryland.

  (5) “Register” means to submit to the Department, for each ground rent:

    (a) The Department's completed registration form; and

    (b) Any appropriate registration fee.

  (6) Submit.

    (a) “Submit” means to cause the Department to receive only by:

      (i) Hand delivery;

      (ii) Regular mail postmarked with a date on or before the time allowed for the action; or

      (iii) Specific electronic means approved by the Department.

    (b) “Submit” does not mean delivery by:

      (i) Facsimile; or

      (ii) Any means other than those set forth above in §B(6)(a) of this regulation.

  (7) “Substantially completed registration form” means one that:

    (a) Has a response for each question;

    (b) Is legible; and

    (c) Is sufficiently accurate to allow the Department to reasonably identify the property for which the ground lease was created.

#### Regulation .02 Registration Deadline.

*COMAR 18.15.02.02*

As provided in Real Property Article, §8-707(a), Annotated Code of Maryland, and subject to Real Property Article, §8-707(b), Annotated Code of Maryland, a ground lease holder shall register a ground lease with the Department before September 30, 2010.

#### Regulation .03 Duties and Responsibilities.

*COMAR 18.15.02.03*

A. The Department's duties and responsibilities respecting the registration of ground rents are ministerial. In registering a ground rent or refusing to register a ground rent pursuant to this chapter, the Department does not:

  (1) Determine that a ground rent does or does not exist;

  (2) Determine that a lot does or does not exist;

  (3) Determine that information contained in a registration form is correct or incorrect, in whole or in part; or

  (4) Create a presumption that the information contained in a registration form is correct or incorrect, in whole or in part.

B. The responsibility for the legal effectiveness of a ground rent registration rests with the ground lease holder. The Department bears no responsibility for effectiveness.

C. The Department and its employees and agents are immune from any liability resulting from inaccurate, incomplete, or illegible information submitted in a ground rent registration form.

#### Regulation .04 Substantially Completed Registration Forms.

*COMAR 18.15.02.04*

The Department may register a ground lease for which a substantially completed registration form has been submitted.

#### Regulation .05 Inconsistent or Incomplete Information.

*COMAR 18.15.02.05*

If any information requested on a registration form has not been provided or if, for any other reason, the Department is unable to register a ground lease for which a registration form and appropriate fee has been submitted:

A. The Department shall notify the ground lease holder of that ground lease, within 30 days of processing the registration form, of any information needed by the Department to complete the registration; and

B. The ground lease holder shall have up to 30 days from the date on the Department's notice to submit the needed information before the ground lease is considered not registered under Real Property Article, §8-707, Annotated Code of Maryland.

#### Regulation .06 Consolidated or Subdivided Lots.

*COMAR 18.15.02.06*

When a ground rent is attempted to be registered for a tax identification number that no longer exists due to consolidation or subdivision of the associated lot, the Department will register the ground rent using the currently existing tax identification number that most closely identifies the consolidated or subdivided lot.