Chapter 01. Redemption
Regulation .01 Scope.LinkCopy Citation
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.LinkCopy Citation
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.LinkCopy Citation
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.LinkCopy Citation
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.LinkCopy Citation
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.LinkCopy Citation
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.LinkCopy Citation
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 annotations
Authority: Real Property Article, §8-804; Tax-Property Article, §2-201; Annotated Code of Maryland
History: Effective date: March 15, 2004 (31:5 Md. R. 451)
History: Regulation .01 amended effective December 6, 2018 (45:24 Md. R. 1162)
History: Regulation .02 amended effective December 6, 2018 (45:24 Md. R. 1162); February 24, 2020 (47:4 Md. R. 263)
History: Regulation .03 amended effective December 6, 2018 (45:24 Md. R. 1162)
History: Regulation .06A amended effective February 24, 2020 (47:4 Md. R. 263)
History: Chapter revised effective January 24, 2022 (49:2 Md. R. 78)