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Maryland's Ground Rent Registration Act requires:

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Question & Answer

Review the question and all answer choices

A

Nothing

Stating that the Act requires nothing is entirely incorrect; the Maryland Ground Rent Registration Act was specifically enacted to impose affirmative obligations on ground rent holders precisely because the prior system of no mandatory disclosure caused widespread consumer harm.

B

Ground rent owners to register and provide notice to homeowners

Correct Answer
C

All homeowners to pay ground rent

The Act does not require all homeowners to pay ground rent; ground rent obligations only apply to properties that are subject to a ground lease, which is a subset of Maryland residential properties concentrated primarily in Baltimore City and Baltimore County, not a universal obligation of all Maryland homeowners.

D

Only commercial registration

Maryland's ground rent system applies predominantly to residential properties, not just commercial properties; the historical and ongoing ground rent problem in Maryland is almost entirely a residential phenomenon centered in Baltimore, and the Act was specifically designed to protect residential homeowners, not commercial property owners.

Why is this correct?

Maryland's Ground Rent Registration Act, codified under Maryland Code, Real Property Article § 8-402.3 and related sections, requires ground rent holders to register their ground rent interests with the Maryland State Department of Assessments and Taxation (SDAT) and to provide written notice to homeowners about the existence and terms of the ground rent. Failure to register results in the ground rent holder losing the right to collect unpaid ground rents and being prohibited from bringing ejectment actions, effectively rendering an unregistered ground rent unenforceable. This dual requirement — registration plus notice — is the core of what the Act mandates and is the substance of the correct answer.

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