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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 is subject to ground lease? What if I can not get in touch with the ground lease holder? What happens if I stop working to pay ground lease? What does it suggest to redeem ground lease? Just how much does it cost to redeem ground lease?
   
   What is Ground Rent?
   
   In certain circumstances, a property owner owns your home they live in however not the land your house sits on. Somebody else (the ground lease holder) owns the land and rents 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 situated on their land. These payments are understood as ground lease.
   
   Ground rent is most common in the Greater-Baltimore real estate market however exists throughout Maryland. Ground rent payments generally range from $50 to $150 annually and are generally paid semi-annually (two times a year). The language of the ground lease will set out the terms of payment. A ground rent lease is usually for 99 years and renews forever.
   
   Ground lease deals are various from regular proprietor and tenant relationships. This is since 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 developed 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 stays under their control.
   
   The house owner is responsible for maintenance 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 change, remodel, and rebuild the residential or commercial property as they want, however they need to 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 pay 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 noted for sale, the residential or commercial property description should list whether the residential or commercial property has any relevant ground rent. If the residential or commercial property is noted as "Fee Simple," the listing consists of both the home and the residential or commercial property (ground) in the purchase price - there is no ground rent. If there is a sign of "Ground Rent" in a listing, it suggests that a fee must be paid to the owner of the ground on which the residential or commercial property sits.
   
   If you own a home, or are seeking to buy a home, you can figure out if a residential or commercial property goes through payment of a ground rent by looking at the deed. Ground rent deeds are filed in the land records of the Circuit Court in the county where the residential or commercial property lies. In numerous 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 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 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 signed up for your residential or commercial property, you are obliged to pay the ground rent to the ground lease holder. You need to contact the owner listed on the registration kind concerning payment of the ground lease or to inform the owner that you wish to redeem your ground rent. It is also your responsibility to notify the ground lease holder if you alter your address or transfer ownership of the residential or commercial property. If you are a ground lease renter (house owner) or leaseholder and you have a concern, it is a great concept to call an attorney.
   
   Read the law: Md. Code, Real Residential Or Commercial Property § 8-703