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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 undergoes ground lease? What if I can not call the ground lease holder? What occurs if I fail to pay ground rent? What does it imply to redeem ground lease? Just how much does it cost to redeem ground lease?
   
   What is Ground Rent?
   
   In specific circumstances, a house owner owns the home they live in however not the land your house sits on. Another person (the ground lease holder) owns the land and rents the land to the homeowner. Under Maryland law, a ground lease holder is entitled to rent payments from the owner of the home that lies on their land. These payments are referred to as ground lease.
   
   Ground rent is most typical in the Greater-Baltimore property market however exists throughout Maryland. Ground lease payments generally vary from $50 to $150 each year and are usually paid semi-annually (two times a year). The language of the ground lease will set out the terms and conditions of payment. A ground rent lease is normally for 99 years and renews forever.
   
   Ground lease offers are various from typical landlord and tenant relationships. This is since the ground lease owner has no right to reclaim any residential or commercial property unless the renter does not pay lease. That is, the ground lease holder doesn't have a reversionary right to the residential or commercial property or any structures constructed on it unless the homeowner stops working to make the required payments. If the leaseholder is current with their ground rent payments, the residential or commercial property remains under their control.
   
   The house owner is accountable for upkeep of the land and any improvements on the land, including enhancements made to the home itself (Kolker v. Biggs, 203 Md. 137, 141 (1953 )). The property owner has the authority to modify, redesign, and rebuild the residential or commercial property as they wish, but they must guarantee that their actions maintain the value of the land (Crowe v. Wilson, 65 Md. 479, 484 (1886 )). Additionally, it is the sole obligation of the house owner to obtain and pay on any utilities that service the residential or commercial property.
   
   How do I know if a residential or commercial property is subject to ground rent?
   
   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 suitable ground lease. If the residential or commercial property is listed as "Fee Simple," the listing includes both your house and the residential or commercial property (ground) in the purchase price - there is no ground lease. If there is an indicator of "Ground Rent" in a listing, it shows that a cost needs to be paid to the owner of the ground on which the residential or commercial property sits.
   
   If you own a home, or are looking to acquire a home, you can determine if a residential or commercial property goes through payment of a ground rent by looking at the deed. Ground lease deeds are filed 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 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 unsure 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 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 bound to pay the ground rent to the ground lease holder. You need to call the owner noted on the registration type relating to payment of the ground rent or to inform the owner that you would like to redeem your ground rent. It is also your responsibility to alert the ground lease holder if you alter your address or transfer ownership of the residential or commercial property. If you are a ground lease tenant (house owner) or leaseholder and you have a concern, it is a great concept to contact a lawyer.
   
   Read the law: Md. Code, Real Residential Or Commercial Property § 8-703