Ground rent in Maryland is:
Question & Answer
Review the question and all answer choices
Nonexistent
Answer A is incorrect because ground rent is very much a real and legally recognized institution in Maryland, especially prevalent in Baltimore City where tens of thousands of properties are subject to ground rent arrangements.
A unique form of leasehold where owner pays rent for the land
Same as property tax
Answer C is incorrect because property tax is a government-imposed levy on real property used to fund public services, whereas ground rent is a private contractual obligation paid to a private landowner — the two have entirely different legal bases, recipients, and purposes.
Only in commercial properties
Answer D is incorrect because ground rent in Maryland is predominantly associated with residential properties, particularly row homes in Baltimore City and Baltimore County, not commercial properties, making this characterization factually backwards.
Why is this correct?
Answer B is correct because Maryland ground rent is precisely defined as a leasehold arrangement in which a property owner pays periodic rent to a separate landowner for the right to use the land beneath their building, creating a bifurcated ownership structure unique to the state. Under Maryland Real Property Article § 8-402, ground leases are typically created for 99-year renewable terms, and the ground rent holder retains a reversionary interest in the land. This arrangement is legally recognized only in Maryland among U.S. states and is a heavily tested concept on the Maryland real estate licensing exam.
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