Maryland Real Property Code: Deeds, Leases & Foreclosure

The Maryland Real Property Code is the body of state law that governs how land and buildings are owned, transferred, leased, and used in Maryland. It sets the rules for valid deeds, title disputes, real estate contracts, landlord and tenant obligations, ground rent, and more. Most of its substance lives in the Real Property Article of the Maryland Code, with related requirements scattered across the Business Occupations and Professions Article, the Courts and Judicial Proceedings Article, and the Land Use Article. If you own, buy, sell, rent, or lease property in the state, these are the provisions that decide what you can do and what you owe.

Deeds and Recording

A deed transfers ownership from one person to another. Under Real Property § 4-101, a valid Maryland deed must name the grantor and grantee, describe the property clearly enough to identify it, state the type of interest being conveyed, and be executed and acknowledged — in practice, signed before a notary. The statute specifies that the absence of a seal or witness signature does not invalidate a deed, so the common belief that you need a witness alongside the notary is wrong for standard Maryland deeds.¹

Signing is only half the job. Under § 3-101, no freehold estate or deed takes effect until it has been executed and recorded. A perfectly signed deed sitting in a drawer is legally ineffective against third parties until it appears in the local land records. If someone else later acquires an interest in the same property without knowing about your unrecorded deed, their claim can take priority over yours.²

Leases with an initial term of seven years or less do not need to be recorded. For longer leases, you can record a memorandum of lease rather than the full document, containing the key terms such as the parties’ names, the property description, and the start and end dates.²

Title Disputes and Adverse Possession

When ownership is contested, Real Property § 14-108 allows anyone in peaceful possession of property whose title is denied or disputed to file a quiet title action in circuit court. The court can declare the plaintiff the absolute owner and enjoin the opposing party from asserting their claim further. Because the proceeding runs against the property itself, it works even when the person challenging your title is hard to locate or won’t engage.³

Adverse possession runs on a 20-year clock. Under Courts and Judicial Proceedings § 5-103, a property owner who fails to file a recovery action or physically enter the land within 20 years of losing possession loses the right to reclaim it. The flip side is that someone occupying another person’s land openly and continuously for that full period can effectively acquire ownership. Courts look at common-law factors including whether the possession was actual, open, hostile, and uninterrupted. If you own vacant or unused land in Maryland, checking on it periodically is the simplest way to keep an adverse possession claim from taking root.⁴

Easements and Covenants

Easements give someone else the right to use your land for a specific purpose — a utility company’s power lines, a neighbor’s shared driveway. Real Property § 2-118 treats conservation easements in detail, allowing restrictions on land use for purposes like erosion control, wildlife preservation, and open space. These restrictions are enforceable like traditional easements and survive changes in ownership.⁵

Covenants are different: they restrict or require certain behavior by the owner rather than grant use rights to someone else. They turn up most often in planned communities and homeowners’ associations, governing things like building materials, fence heights, and permitted uses.

Buying and Selling Property

Contracts Must Be in Writing

Maryland’s Statute of Frauds, at Real Property § 5-104, requires any contract for the sale of land or an interest in land to be in writing and signed by the person against whom it is being enforced. A verbal agreement to sell a house is unenforceable, no matter how detailed. The writing does not have to be a formal contract; a signed memo summarizing the deal can satisfy the requirement.⁶

Licensed Agents Only

Anyone acting as a real estate broker, associate broker, or salesperson in Maryland must hold a license from the Maryland Real Estate Commission under Title 17 of the Business Occupations and Professions Article. Licensed agents owe fiduciary duties to their clients: acting in your best interest, disclosing known property defects, and avoiding conflicts of interest. The Commission can discipline agents who violate those standards, including suspension or revocation of a license.⁷

Transfer and Recordation Taxes

The state transfer tax on property sales runs 0.5% of the purchase price. First-time Maryland homebuyers purchasing a principal residence pay a reduced rate of 0.25%. On top of that, the state charges a recordation tax based on the consideration paid or the amount of debt secured, and counties can add their own local recordation taxes. The split between buyer and seller is typically negotiated in the contract, and the combined bill is meaningful enough to factor into a transaction budget.

Federal Rules That Overlap

Buyers using a mortgage run into federal disclosure rules alongside Maryland’s requirements. Under the TILA-RESPA Integrated Disclosure rule, the lender must deliver a Closing Disclosure at least three business days before settlement listing final loan terms, monthly payment, and closing costs. Certain late changes — an inaccurate interest rate, a newly added prepayment penalty — trigger a corrected disclosure and a new three-business-day waiting period before closing.⁸

RESPA Section 8 bars anyone involved in a mortgage transaction from giving or receiving anything of value in exchange for referring business to a particular settlement service provider. “Unearned fees” — charges for services never performed — are also prohibited. Violations can carry civil and criminal penalties, and the ban reaches informal arrangements shown by a pattern of conduct, not just written agreements.⁹

If the seller is a foreign person or entity, the federal Foreign Investment in Real Property Tax Act requires the buyer to withhold 15% of the amount realized on the sale and remit it to the IRS. The amount realized includes cash paid, the fair market value of other property transferred, and any debt assumed. The buyer is responsible for determining whether the seller is foreign; in most residential deals the seller provides a certification of non-foreign status, and if that certification is not available, the withholding obligation should be assumed to apply. A buyer who fails to withhold can be held personally liable for the tax owed.¹⁰

Landlord and Tenant Rights Under Title 8

Title 8 of the Real Property Article governs the landlord-tenant relationship, from lease terms to eviction. The tenant protections are substantial, and landlords who ignore them face real liability.

Habitability and Rent Escrow

Landlords must keep rental properties in livable condition. When serious defects exist — broken heating, plumbing failures, structural hazards — § 8-211 lets a tenant pay rent into court rather than to the landlord if the landlord refuses or fails to make needed repairs within a reasonable time. The court decides whether the landlord has met their obligations before releasing the funds. The mechanism gives tenants leverage without forcing them to withhold rent and risk eviction.¹¹

No Retaliation

Section 8-208.1 prohibits landlords from retaliating against tenants who exercise their legal rights. A landlord cannot threaten eviction, raise rent, or cut services because a tenant complained about unsafe conditions, filed a lawsuit, joined a tenants’ organization, or called law enforcement or emergency services. If the landlord’s action occurs within six months of the protected activity, it is presumed retaliatory. After that window, the tenant has to prove retaliatory intent independently.¹²

Security Deposit Limits

Maryland tightened its security deposit rules. For leases entered into on or after October 1, 2024, the deposit cannot exceed one month’s rent, regardless of how many tenants occupy the unit. A narrow exception allows up to two months’ rent, by written agreement, when the tenant receives utility assistance through the Department of Human Services and the lease requires utility payments to the landlord. A landlord who overcharges can be sued for up to three times the excess amount plus attorney’s fees.¹³

After the tenancy ends, the landlord has 45 days to return the deposit with accrued interest. If any portion is withheld for damages, the landlord must send an itemized list of deductions and actual costs by first-class mail to the tenant’s last known address. Failing to provide that list within the 45-day window can forfeit the landlord’s right to withhold anything at all.¹³

Lead Paint Rules for Pre-1978 Rentals

Owners of rental properties built before 1978 face strict lead paint obligations. Every such property must be registered with the Maryland Department of the Environment. As of January 1, 2026, the registration fee is $75 for a two-year period, up from $30 annually. New registrations must be filed within 30 days of purchasing a rental property.¹⁴

At every change in occupancy, owners must meet the Full Risk Reduction Standard, which requires the property to pass a lead dust inspection by an accredited contractor and to be free of defective paint on interior and exterior surfaces. Landlords must give tenants a Notice of Tenant’s Rights and a copy of the current lead inspection certificate at the start of the tenancy. If lead hazards found during a tenancy require treatments that keep tenants out for more than 24 hours, the landlord pays for temporary relocation to lead-safe housing, plus moving and storage costs.¹⁴

Ground Rent

Maryland is one of the few states where ground rent still exists as a working arrangement, concentrated in Baltimore and nearby areas. You own the building; a separate ground lease holder owns the land beneath it; you pay a modest semi-annual or annual rent. The amounts are small, the consequences of ignoring them are not.

Under Real Property § 8-809, a ground lease holder cannot collect rent unless the ground lease is registered with the Maryland Department of Assessments and Taxation and the holder mails a bill at least 60 days before payment is due. If your mailing address matches the property address, the holder must send one copy by first-class mail and another by certified mail, and cannot charge you for the cost of sending the bills.¹⁵

If you own property subject to a ground lease, you have the right to redeem it — buy out the ground lease and gain full ownership of both the building and the land. The redemption amount is set by agreement or by a statutory formula. Failing to pay ground rent can lead to a court action for arrears, and in extreme cases a claim for possession of the property. Collection is capped at three years of past-due rent, with limits on associated fees and costs. If you’re buying property in Baltimore, checking whether a ground lease exists is basic due diligence.¹⁵

Foreclosure Timeline

Maryland’s foreclosure process involves significant court oversight and tight deadlines. Before filing, the mortgage servicer must send a Notice of Intent to Foreclose at least 45 days in advance, often with a loss mitigation application. A borrower who wants to be evaluated for alternatives such as a loan modification needs to complete and return that application promptly.¹⁶

The formal filing, called an Order to Docket, can be submitted as soon as 120 days after the first missed payment for most loans covered by federal law. After filing, the homeowner has 25 days from receiving the Final Loss Mitigation Affidavit to request foreclosure mediation. If mediation fails or is not requested, the property moves to a foreclosure sale, with at least 10 days’ notice to the homeowner before the sale date. The homeowner then has 30 days after the sale to file exceptions challenging the result. Once the court ratifies the sale, eviction can follow in as few as 15 days.¹⁶

Zoning Sits With Local Government

Zoning authority in Maryland is delegated to local governments, which develop comprehensive plans reflecting each community’s priorities. Under Land Use § 3-102, every local comprehensive plan must include elements covering community facilities, housing, land use, transportation, water resources, sensitive areas, and development regulations, among others.¹⁷

Local ordinances classify land as residential, commercial, industrial, or agricultural and set what can be built and how buildings may be used. To use property in a way that doesn’t fit its current classification, you typically apply for a variance or special exception through the local zoning board. Rezoning requests go through the local legislative process and usually require public hearings. Owners of commercial space should also keep in mind Title III of the Americans with Disabilities Act: new construction and major alterations of places open to the public must meet the ADA Standards for Accessible Design, and existing facilities must remove architectural barriers when doing so is “readily achievable” in light of the owner’s financial resources.

1
Maryland General Assembly. Maryland Code 4-101 – What Deeds Sufficient; Seal or Attestation Not Required
2
Maryland General Assembly. Maryland Code Real Property 3-101 – Deeds and Conveyances – Effective Date and Recording
3
Maryland General Assembly. Maryland Code Real Property 14-108 – Quieting Title
4
Maryland General Assembly. Maryland Code Courts and Judicial Proceedings 5-103
5
Maryland General Assembly. Maryland Code Real Property 2-118 – Conservation Easements
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Maryland General Assembly. Maryland Code Real Property 5-104 – Executory Contracts
7
Maryland General Assembly. Maryland Code Business Occupations and Professions 17-301 – License Required
8
Consumer Financial Protection Bureau. TILA-RESPA Integrated Disclosure FAQs
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Consumer Financial Protection Bureau. Prohibition Against Kickbacks and Unearned Fees
10
Internal Revenue Service. FIRPTA Withholding
11
Maryland General Assembly. Maryland Code Real Property 8-211 – Repair of Conditions or Defects
12
Maryland General Assembly. Maryland Code Real Property 8-208.1 – Retaliatory Actions
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Maryland General Assembly. Maryland Code Real Property 8-203 – Security Deposits
14
Maryland Department of the Environment. Rental Property Owner Requirements
15
Maryland General Assembly. Maryland Code Real Property 8-809 – Collection and Notice Requirements
16
Maryland Department of Labor. Maryland’s Mortgage Foreclosure Process
17
Justia. Maryland Code Land Use 3-102 – Elements