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Md. High Court Sides With Ground Rent Holders

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(Credid: AP)

(Credid: AP)

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ANNAPOLIS, Md. (AP) — Maryland’s highest court has struck down a key piece of ground-rent reforms enacted by lawmakers in 2007, siding with ground rent holders in a lawsuit against the state.

The Daily Record of Baltimore reports the Court of Appeals ruled Wednesday that ground lease holders cannot be required to foreclose on renters who are more than six months late on their rent instead of ejecting them. The court said the legislature did not have the authority to invalidate ejectment clauses commonly found in the ground leases.

Ground rent is an antiquated provision in some areas whereby homeowners must pay nominal rents for the land their homes sit on.

Ground rent holders filed the lawsuit against the state claiming the foreclosure process was more expensive and time consuming.
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(Copyright 2013 by The Associated Press. All Rights Reserved.)

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