<?xml version='1.0' encoding='utf-8'?>
<chapter num="01" heading="Redemption" title_num="18" subtitle_num="15">
  <regulation prefix="Regulation" num=".01" heading="Scope.">
    <text>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.</text>
  </regulation>
  <regulation prefix="Regulation" num=".02" heading="Documentation of Lease by Tenant.">
    <text>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:</text>
    <paragraph num="A.">
      <text>A copy of:</text>
      <paragraph num="(1)">
        <text>The publicly recorded lease creating the leasehold on the property and ground rent interest of the landlord; or</text>
      </paragraph>
      <paragraph num="(2)">
        <text>Any publicly recorded documents establishing the existence of the lease;</text>
      </paragraph>
    </paragraph>
    <paragraph num="B.">
      <text>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;</text>
    </paragraph>
    <paragraph num="C.">
      <text>An application form prescribed by the Department which includes, but is not limited to, the:</text>
      <paragraph num="(1)">
        <text>Tenant's name and address;</text>
      </paragraph>
      <paragraph num="(2)">
        <text>Address of the property subject to the ground rent;</text>
      </paragraph>
      <paragraph num="(3)">
        <text>Property account number in the Department's records for the subject property; and</text>
      </paragraph>
      <paragraph num="(4)">
        <text>Tenant's affidavit certifying that the requirements of Real Property Article, §8-804, Annotated Code of Maryland, have been met;</text>
      </paragraph>
    </paragraph>
    <paragraph num="D.">
      <text>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:</text>
      <paragraph num="(1)">
        <text>A copy of the correspondence from the tenant notifying the landlord of tenant's intention to redeem the ground rent; and</text>
      </paragraph>
      <paragraph num="(2)">
        <text>Proof of mailing from the United States Postal Service of the notice to the landlord by certified mail; and</text>
      </paragraph>
    </paragraph>
    <paragraph num="E.">
      <text>Pay any fees required by Corporations and Associations Article, §1-203, and Real Property Article, §8-804, Annotated Code of Maryland.</text>
    </paragraph>
  </regulation>
  <regulation prefix="Regulation" num=".03" heading="Calculation of Redemption Amount.">
    <paragraph num="A.">
      <text>The Department shall:</text>
      <paragraph num="(1)">
        <text>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</text>
      </paragraph>
      <paragraph num="(2)">
        <text>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.</text>
      </paragraph>
    </paragraph>
    <paragraph num="B.">
      <text>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.</text>
    </paragraph>
  </regulation>
  <regulation prefix="Regulation" num=".04" heading="Documentation of Claimant's Interest.">
    <text>To file a claim under Real Property Article, §8-804, Annotated Code of Maryland, a claimant shall:</text>
    <paragraph num="A.">
      <text>File a copy of the publicly recorded documents establishing the claimant as the current landlord to the satisfaction of the Department;</text>
    </paragraph>
    <paragraph num="B.">
      <text>If the claimant is the landlord and a natural person, submit a notarized affidavit acknowledged under oath to the</text>
    </paragraph>
    <paragraph num="C.">
      <text>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;</text>
    </paragraph>
    <paragraph num="D.">
      <text>If the claimant is an heir or devisee of the landlord, file:</text>
      <paragraph num="(1)">
        <text>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</text>
      </paragraph>
      <paragraph num="(2)">
        <text>Identification of the type described in §B or C of this regulation;</text>
      </paragraph>
    </paragraph>
    <paragraph num="E.">
      <text>If the claimant is a creditor of the landlord, provide:</text>
      <paragraph num="(1)">
        <text>Satisfactory proof of any lien on the ground rent interest; and</text>
      </paragraph>
      <paragraph num="(2)">
        <text>Identification of the type described in §B or C of this regulation; and</text>
      </paragraph>
    </paragraph>
    <paragraph num="F.">
      <text>Pay any fees required by Corporations and Associations Article, §1-203, and Real Property Article, §8-804, Annotated Code of Maryland.</text>
    </paragraph>
  </regulation>
  <regulation prefix="Regulation" num=".05" heading="Internet Posting.">
    <paragraph num="A.">
      <text>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.</text>
    </paragraph>
    <paragraph num="B.">
      <text>If a ground rent redemption filing exists, the ground rents filing system will provide information showing that a redemption:</text>
      <paragraph num="(1)">
        <text>Application has been filed;</text>
      </paragraph>
      <paragraph num="(2)">
        <text>Certificate has been issued; and</text>
      </paragraph>
      <paragraph num="(3)">
        <text>Payment has been authorized by the Department.</text>
      </paragraph>
    </paragraph>
  </regulation>
  <regulation prefix="Regulation" num=".06" heading="Issuance of Redemption Certificates.">
    <text>The Department will issue the ground rent redemption certificate:</text>
    <paragraph num="A.">
      <text>90 days after the posting of the notice of the application on the Department's website; and</text>
    </paragraph>
    <paragraph num="B.">
      <text>After the redemption amount has been paid by the tenant to the Department.</text>
    </paragraph>
  </regulation>
  <regulation prefix="Regulation" num=".07" heading="Payment Methods.">
    <paragraph num="A.">
      <text>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.</text>
    </paragraph>
    <paragraph num="B.">
      <text>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.</text>
    </paragraph>
  </regulation>
  <annotations>
    <annotation type="Authority">Real Property Article, §8-804; Tax-Property Article, §2-201; Annotated Code of Maryland</annotation>
    <annotation type="History" subtype="Administrative History">Effective date: March 15, 2004 (31:5 Md. R. 451)</annotation>
    <annotation type="History" subtype="Administrative History">Regulation .01 amended effective December 6, 2018 (45:24 Md. R. 1162)</annotation>
    <annotation type="History" subtype="Administrative History">Regulation .02 amended effective December 6, 2018 (45:24 Md. R. 1162); February 24, 2020 (47:4 Md. R. 263)</annotation>
    <annotation type="History" subtype="Administrative History">Regulation .03 amended effective December 6, 2018 (45:24 Md. R. 1162)</annotation>
    <annotation type="History" subtype="Administrative History">Regulation .06A amended effective February 24, 2020 (47:4 Md. R. 263)</annotation>
    <annotation type="History" subtype="Administrative History">Chapter revised effective January 24, 2022 (49:2 Md. R. 78)</annotation>
  </annotations>
</chapter>