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3. Understanding Ground Rent in Maryland
   
   Understanding Ground Rent in Maryland
   
   Topics on this page:
   
   What is Ground Rent? How do I understand 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 fail to pay ground rent? What does it mean to redeem ground lease? Just how much does it cost to redeem ground lease?
   
   What is Ground Rent?
   
   In certain circumstances, a house owner owns the home they reside in but not the land your home rests on. Somebody else (the ground lease holder) owns the land and rents the land to the house owner. Under Maryland law, a ground lease holder is entitled to lease payments from the owner of the home that lies on their land. These payments are called ground rent.
   
   Ground rent is most typical in the Greater-Baltimore realty market however exists throughout Maryland. Ground lease payments typically range from $50 to $150 per year and are typically paid semi-annually (twice a year). The language of the ground lease will set out the conditions of payment. A ground rent lease is generally for 99 years and restores indefinitely.
   
   Ground lease offers are different from regular property manager and tenant relationships. This is because 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 doesn't have a reversionary right to the residential or commercial property or any structures constructed on it unless the property owner fails to make the required payments. If the leaseholder is present with their ground lease payments, the residential or commercial property stays under their control.
   
   The house owner is accountable for maintenance of the land and any enhancements on the land, consisting of enhancements made to the home itself (Kolker v. Biggs, 203 Md. 137, 141 (1953 )). The homeowner has the authority to modify, remodel, and reconstruct the residential or commercial property as they wish, but they should guarantee that their actions protect the worth of the land (Crowe v. Wilson, 65 Md. 479, 484 (1886 )). Additionally, it is the sole obligation of the property owner to acquire and make payment on any energies that service the residential or commercial property.
   
   How do I understand if a residential or commercial property undergoes ground rent?
   
   When a residential or commercial property is noted for sale, the residential or commercial property description must list whether the residential or commercial property has any rent. If the residential or commercial property is noted as "Fee Simple," the listing consists of both your house and the residential or commercial property (ground) in the purchase rate - there is no ground rent. If there is an indicator of "Ground Rent" in a listing, it suggests that a cost should be paid to the owner of the ground on which the residential or commercial property sits.
   
   If you own a home, or are wanting to acquire a home, you can figure out if a residential or commercial property is subject to payment of a ground lease by looking at the deed. Ground rent deeds are submitted in the land records of the Circuit Court in the county where the residential or commercial property is located. In a lot of cases, a deed for multiple ground leas owned by one owner will be written. Land records can be discovered on the website mdlandrec.net.
   
   Maryland law requires that ground lease holders register 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 rent, you can view the registration status through SDAT's Real Residential or commercial property Search. (When seeing the residential or commercial property record, click on "View Ground Rent Redemption")
   
   If a ground lease is registered for your residential or commercial property, you are obligated to pay the ground rent to the ground lease holder. You ought to contact the owner listed on the registration form relating to payment of the ground rent or to notify the owner that you want to redeem your ground lease. It is likewise your obligation to alert the ground lease holder if you change your address or transfer ownership of the residential or commercial property. If you are a ground rent tenant (homeowner) or leaseholder and you have a question, it is a good idea to call a lawyer.
   
   Read the law: Md. Code, Real Residential Or Commercial Property § 8-703