reference.com

1. Real Estate and Other Housing
2. Homeownership
3. Understanding Ground Rent in Maryland
   
   Understanding Ground Rent in Maryland
   
   Topics on this page:
   
   What is Ground Rent? How do I know if a residential or commercial property is subject to ground lease? What if I can not get in touch with the ground lease holder? What happens if I fail to pay ground rent? What does it indicate to redeem ground lease? Just how much does it cost to redeem ground lease?
   
   What is Ground Rent?
   
   In certain scenarios, a homeowner owns your home they live in however not the land the house rests on. Somebody else (the ground lease holder) owns the land and leases the land to the homeowner. Under Maryland law, a ground lease holder is entitled to lease payments from the owner of the home that lies on their land. These payments are called ground lease.
   
   Ground lease is most common in the Greater-Baltimore realty market however exists throughout Maryland. Ground lease payments usually range from $50 to $150 annually and are normally paid semi-annually (twice a year). The language of the ground lease will set out the terms and conditions of payment. A ground rent lease is typically for 99 years and restores forever.
   
   Ground lease deals are different from typical landlord and renter relationships. This is due to the fact that the ground lease owner has no right to take back any residential or commercial property unless the occupant does not pay lease. That is, the ground lease holder does not have a reversionary right to the residential or commercial property or any structures constructed on it unless the homeowner fails to make the required payments. If the leaseholder is existing with their ground rent payments, the residential or commercial property stays under their control.
   
   The house owner is accountable for maintenance of the land and any enhancements on the land, including enhancements made to the home itself (Kolker v. Biggs, 203 Md. 137, 141 (1953 )). The homeowner has the authority to modify, remodel, and rebuild the residential or commercial property as they want, however they should make sure that their actions maintain the value of the land (Crowe v. Wilson, 65 Md. 479, 484 (1886 )). Additionally, it is the sole responsibility of the house owner to acquire and make payment on any utilities that service the residential or commercial property.
   
   How do I understand if a residential or commercial property undergoes ground rent?
   
   When a residential or commercial property is listed for sale, the residential or commercial property description must list whether the residential or commercial property has any appropriate ground rent. If the residential or commercial property is noted as "Fee Simple," the listing consists of both your home and the residential or commercial property (ground) in the purchase price - there is no ground rent. If there is an indication of "Ground Rent" in a listing, it indicates that a charge must be paid to the owner of the ground on which the residential or commercial property sits.
   
   If you own a home, or are aiming to buy a home, you can figure out if a residential or commercial property undergoes payment of a ground rent by taking a look at the deed. Ground lease deeds are filed in the land records of the Circuit Court in the county where the residential or commercial property lies. In many cases, a deed for multiple ground rents owned by one owner will be written. Land records can be found on the site mdlandrec.net.
   
   Maryland law needs that ground lease holders register ground lease leases on the Maryland State Department of Assessments and Taxation's (SDAT) Ground Rent Registry. If you are not sure that your residential or commercial property has a ground lease, you can see the registration status through SDAT's Real Residential or commercial property Search. (When seeing the residential or commercial property record, click "View Ground Rent Redemption")
   
   If a ground lease is registered for your residential or commercial property, you are bound to pay the ground lease to the ground lease holder. You ought to get in touch with the owner listed on the registration kind regarding payment of the ground lease or to inform the owner that you would like to redeem your ground rent. It is likewise your responsibility to alert the ground lease holder if you alter your address or transfer ownership of the residential or commercial property. If you are a ground rent renter (property owner) or leaseholder and you have a question, it is a good idea to contact a lawyer.
   
   Read the law: Md. Code, Real Residential Or Commercial Property § 8-703