Redeem a Ground Rent
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. A ground rent tenant may, however, choose to redeem the property and to create a ground rent redemption deed without the benefit of an attorney, but the ground rent tenant must draft the deed.
A ground lease tenant may use the procedures prescribed by law and set forth below to redeem the ground lease through SDAT. This process will take at least 120 days to complete, and begins once the Notice of Intent to Redeem is posted or when the owner of the ground rent is notified in writing by certified mail.
- Determine if a ground rent redemption filing has been made for a specific property.
The link above directs to SDAT’s online Real Property database where property records and ground rent filings may be viewed through links at the top of the display page.
- Notify the owner of the ground rent of the intent to redeem the ground rent through SDAT. The notice must be in writing and mailed both by first class mail and by certified mail, return receipt requested at least thirty (30) days prior to submitting a Ground Rent Redemption Application.
- If, and only if, the address of the ground rent owner is unknown, post the Notice of Application For A Ground Rent Redemption. This Notice must be posted in a conspicuous place on the property for (30) days.
- Complete an Application For Residential Ground Rent Redemption
Mail your completed documents to SDAT or place the completed documents in the dropbox marked "date received" located in the lobby of 301 West Preston Street, Baltimore, Maryland 21201. Please note that we are not presently allowing in-person ppointments. Flings must include the following:
(b) A copy of the deed that created the ground rent - this is separate from any document that establishes the homeowner's interest in the property
(c) A copy of the homeowner’s deed to the property
(d) A check for the processing fee made payable to SDAT in the amount of
Fee Option #1: $20 for regular processing via mail; or
Fee Option #2: $70 for expedited processing via mail.
(e) If ground rent payments have been made in the past three years, provide a copy of the canceled check for each transaction.
(f) 1. A copy of the notice that was sent to the owner of the ground rent and the return receipt from the United States Post Office; or
2. If the last known address of the landlord is unknown, provide an affidavit setting forth the tenant’s good faith efforts to investigate and discover the last known address of the landlord.
Note: It is helpful, but not required, to include a copy of the notice that was posted on the property and/or clear photographs of the notice posted in a conspicuous place on the property.
Note: When the process is complete, SDAT will issue a Certificate of Redemption. SDAT does not provide notice of the expiration of the 90-day waiting period described in #6. After receipt, the certificate must be filed in the land records of the local jurisdiction. **SDAT does not record this document** The ground rent tenant may also have to pay transfer taxes to the jurisdiction in which the property is located prior to recording the certificate in the local land records office. Please consult an attorney or title company for questions about this situation.
No less than 90 days after the application has been approved, mail your
completed documents to SDAT or place the completed documents in the dropbox marked "date received" located in the lobby of 301 West Preston Street, Baltimore, Maryland 21202. The filing must include the following:
View a listing of properties on which redemption applications have been made. The redemption reports are updated weekly.
Ground Rent Registry
The State Department of Assessments and Taxation (SDAT) neither collects ground rent payment nor manages ground rent leases. All registered ground rents are managed solely by the owner/agent. The State Department of Assessments and Taxation has placed on its website a link from its real property system to the Ground Rent Registry in order to provide the statutory on-line database that allows users to determine if a ground lease is registered and if so, get specific information regarding the registered lease.
In order to successfully register a property subject to a lease hold, in part, the name of the Grantee in the referenced deed must match the name of the lease holder identified on the application. An application cannot be processed without this information and will be rejected. Please note that SDAT is unable to provide assistance with title searches.
To view information regarding a property that is subject to a ground lease please visit http://sdat.dat.maryland.gov/RealProperty/Pages/default.aspx .
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, the Department does not conclude the existence of a ground rent or lot and cannot determine or create an assumption that the information provided by the registrant is complete, current and accurate. SDAT and its employees and agents are immune from any liability resulting from inaccurate, incomplete, or illegible information submitted in a ground rent registration form. If you require immediate verification of the status of a ground rent, please contact a legal professional for assistance.
The Ground Rent Registry also provides information concerning each property for
which an Application for a Ground Rent Redemption has been accepted by the
Department. If a ground rent redemption filing exists, the registry will indicate that an Application for Ground Rent Redemption has been filed; whether the redemption amount has been paid and a Ground Rent Redemption Certificate has been issued; and if a payout has been authorized by the Department to the lease holder of record.
Collection and Notice for Payment of Ground Rent
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.
Payment Demand Notice for Ground Rent in Arrears
Sample Ground Rent Payment Demand Notice & Instructions.