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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 goes through ground lease? What if I can not contact the ground lease holder? What takes place if I fail to pay ground lease? What does it mean to redeem ground rent? How much does it cost to redeem ground rent?
   
   What is Ground Rent?
   
   In specific circumstances, a property owner owns your home they live in however not the land the home rests on. Somebody else (the ground lease holder) owns the land and leases the land to the property owner. Under Maryland law, a ground lease holder is entitled to rent payments from the owner of the home that is located on their land. These payments are referred to as ground rent.
   
   Ground rent is most typical in the Greater-Baltimore property market but exists throughout Maryland. Ground rent payments usually vary from $50 to $150 each year and are generally paid semi-annually (two times a year). The language of the ground lease will set out the conditions of payment. A ground rent lease is normally for 99 years and restores forever.
   
   Ground rent deals are different from typical proprietor and tenant relationships. This is due to the fact that the ground lease owner has no right to reclaim any residential or commercial property unless the occupant does not pay rent. 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 property owner stops working to make the needed payments. If the leaseholder is current with their ground rent payments, the residential or commercial property remains under their control.
   
   The property owner is accountable for upkeep of the land and any improvements on the land, consisting of enhancements made to the home itself (Kolker v. Biggs, 203 Md. 137, 141 (1953 )). The house owner has the authority to modify, remodel, and reconstruct the residential or commercial property as they wish, however they should ensure that their actions maintain the worth of the land (Crowe v. Wilson, 65 Md. 479, 484 (1886 )). Additionally, it is the sole obligation of the house owner to procure and make payment on any energies that service the residential or commercial property.
   
   How do I understand if a residential or commercial property undergoes ground lease?
   
   When a residential or commercial property is listed for sale, the residential or commercial property description should 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 includes both your house and the residential or commercial property (ground) in the purchase rate - there is no ground rent. If there is a sign of "Ground Rent" in a listing, it shows 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 wanting to acquire a home, you can figure out if a residential or commercial property goes through payment of a ground lease by taking a look at the deed. Ground lease deeds are submitted in the land records of the Circuit Court in the county where the residential or commercial property is located. In most cases, a deed for several ground leas owned by one owner will be written. Land records can be found on the website mdlandrec.net.
   
   Maryland law requires that ground lease holders sign up 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 view the registration status through SDAT's Real Residential or commercial property Search. (When viewing the residential or commercial property record, click on "View Ground Rent Redemption")
   
   If a ground lease is registered for your residential or commercial property, you are obliged to pay the ground rent to the ground lease holder. You need to call the owner listed on the registration form concerning payment of the ground rent or to inform the owner that you wish to redeem your ground rent. It is likewise your responsibility to alert the ground lease holder if you change your address or transfer ownership of the residential or commercial property. If you are a ground lease tenant (homeowner) or leaseholder and you have a question, it is a great concept to contact a lawyer.
   
   Read the law: Md. Code, Real Residential Or Commercial Property § 8-703