If you have questions about the State Department of Taxation Residential Ground Rent Programs send your inquires via email or call:
The owner of a ground lease may not collect a payment of a ground rent unless the ground lease is duly registered with SDAT and the statutory “Notice Required by Maryland Law Regarding Your Ground Rent” has been mailed to the residential property owner at least sixty (60) days before a payment is due.
Most ground rents are redeemed as a private transaction between the ground rent holder and the ground rent tenant. An attorney or title company should be consulted to assist with this matter. If you choose to redeem the property and to create a ground rent redemption deed without the benefit of an attorney, see the example of a Deed of Redemption that can be used as a guide. Blank deed forms are available below.
Blank redemption deed
Blank redemption deed (This for can be filled in on a computer)
If the owner of a single family residential property who is the tenant under a ground lease on the property has had no communication from the ground rent holder for three years or more, the ground lease tenant may use the procedure prescribed by law to redeem the ground lease by applying to SDAT. This process will take at least 120 days to complete and begins once the Notice of Intent to Redeem is posted.
A program has been established by the Maryland General Assembly to provide loans to eligible homeowners to redeem ground leases. For more information contact the Maryland Department of Housing & Community Development's Ground Rent Redemption Loan Program
In October 2011, The Maryland Court of Appeals ruled that the extinguishment of ground rents for failure to register them with the State is unconstitutional. All ground rents that would have been extinguished for failure to register them are as valid as they were before the registration deadline. Any Certificate of Extinguishment issued by this Department is void and has no effect. MD Court of Appeals; http://mdcourts.gov/opinions/coa/2011/140a10.pdf
Certificate of Invalidation
The Certificate of Invalidation must be requested by the ground lease holder or the leasehold tenant. A written request must be sent to SDAT that shall include:
Upon request, SDAT will file in the land records of the appropriate county a notice which states that the certificate of extinguishment has been invalidated by the Maryland Court of Appeals.
Processing time may be up to eight weeks depending upon the workload of the Department and the county’s land records division. There are no fees associated with this filing.
Mail completed request to: State Department of Assessments and Taxation Ground Rent Division, 301 W. Preston Street; 8th FL, Baltimore, MD 21201-2395.
301 W. Preston St., Baltimore, MD 21201-2395
410-767-1184 | Outside the Baltimore Metro Area 888-246-5941 | Maryland Relay 800-735-2258