Deed on Redemption of Ground Rent

You can retrieve your ground rent by calling the Maryland Residential Ground Rent Redemption Program at the number 410-767-1353 or by completing an applicant for the review course. Owners who qualify based on their budget can now retrieve their ground rent thanks to a new program offered by the Maryland Department of Housing and Community Development, which offers special loan funding.

A rental contract that includes ground rent is made between a renter and a landlord. The landlord would receive a predetermined amount on a monthly or recurring basis from the renter in the form of a fixed fee. As payment, the landlord would grant the renter the right to use a particular parcel of land. As a consequence of this, the tenant will own the home or structure that is situated on the land, but they will not own the land itself. When compared to purchasing both a building and the land on which it will be constructed, entering into a ground-rent arrangement requires a smaller initial investment of capital or money. However, tenants are required to have a thorough understanding of the contents of such agreements because they frequently limit the rights and choices available to the property owner.

After the implementation of the Leasehold Reform (Ground Rent) Act 2022 on June 30, 2022, the payment of Ground Rent will no longer be required. The new law prohibits freeholders from imposing anything more than one peppercorn per year, and it also prohibits them from paying tenants an agreed sum for collecting such peppercorn. In addition, freeholders are prohibited from charging leaseholders an administration fee.

In the event that you do not pay your ground rent, the freeholder has the legal right to petition the court for the right to reclaim the land. The term “forfeiture” refers to this kind of legal proceeding. The freeholder is only able to launch legal action against you if the following condition is met: You are at least three years behind on your ground rent.