Maryland Ground Rents and Property Disclosure
Maryland has two distinctive transactional features: ground rents (especially in Baltimore) and a seller Residential Property Disclosure and Disclaimer Statement. This chapter explains both and how brokers handle them.
Ground Rents
A ground rent is a Maryland arrangement, common in Baltimore, in which the homeowner owns the building but pays periodic rent for the underlying land to a ground rent holder. Ground rents must be registered under Maryland law, and unpaid ground rent can create a lien on the property. A broker should identify ground-rent properties early so buyers understand the recurring obligation and any redemption rights.
Disclosure or Disclaimer
Most residential sellers must deliver a Residential Property Disclosure and Disclaimer Statement. The seller may choose to disclose the property's known condition (disclosure) or sell as-is (disclaimer). Even under the disclaimer option, the seller must reveal latent defects known to the seller that a buyer could not reasonably discover. Licensees must ensure delivery and must never help conceal known defects.
The Licensee's Role
The broker should train affiliated licensees to deliver disclosure documents on time and to distinguish the disclosure choice from the underlying duty to reveal known latent defects. Because ground rents and disclosure defaults are Maryland-specific, out-of-state licensees moving to Maryland must learn them. When legal questions arise, the licensee should refer the parties to counsel rather than give legal advice.