New ground rent policies are likely to become illegal after the Maryland House and Senate unanimously passed bills Thursday to end the practice.
Ground rent is an antiquated provision in some areas whereby homeowners must pay nominal rents for the land their homes sit on. The practice dates to the 1600s and is seldom invoked, but news reports last fall showed some unscrupulous landlords have used unpaid ground rents to evict homeowners and resell the properties.
“The ones we’ve got are causing real problems,” Sen. Brian Frosh, D-Montgomery, said of the ground rents. “We want to say, ‘Stop.’”
The Senate approved a ban on new ground rents 47-0, and the House approved a similar bill 134-0. Because the two chambers must approve identical bills before they become law, the proposal does not yet head to the desk of Gov. Martin O’Malley.
Melissa DelGaudio is a REALTOR®, an e-Pro and an expert in Real Estate Sales in Annapolis, Anne Arundel County and the Chesapeake Bay Region of Maryland.
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