3560

LAWS OF MARYLAND

[Ch. 864

clause or penalty clause in a residential lease; and
allowing only certain damages from a tenant when the
tenant terminates occupancy before the end of the
term.

BY adding to

Article — Real Property

Section 8-211

Annotated Code of Maryland

(1974 Volume and 1974 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That new Section 8-211 be and it is hereby
added to Article — Real Property, of the Annotated Code
of Maryland (1974 Volume and 1974 Supplement) to read as
follows:

Article — Real Property

8-211.

(A)    IN ANNE ARUNDEL COUNTY AND BALTIMORE CITY, A
LIQUIDATED DAMAGES CLAUSE OR PENALTY CLAUSE IN A
RESIDENTIAL LEASE IS NOT ENFORCEABLE. IF A TENANT FAILS
OR REFUSES TO TAKE POSSESSION OF OR VACATES THE DWELLING
UNIT BEFORE THE END OF HIS TERM, THE TENANT IS LIABLE TO
THE LANDLORD [[ONLY]] FOR [[ACTUAL DAMAGES]] LOSS OF RENT
CAUSED BY THE TERMINATION OR TWO MONTHS RENT, WHICHEVER
IS LESS , IN ADDITION TO THE COST OF REPAIRING DAMAGE TO
THE PREMISES WHICH MAY HAVE BEEN CAUSED BY AN ACT OR
OMISSION OF THE TENANT.

(B)    A RESIDENTIAL LEASE OF PROPERTY IN ANNE
ARUNDEL COUNTY OR BALTIMORE CITY ENTERED INTO AFTER JULY
1, 1975, MAY NOT CONTAIN A LIQUIDATED DAMAGES CLAUSE OR A
PENALTY CLAUSE.

(C)    IN ANNE ARUNDEL COUNTY AND BALTIMORE CITY, IN
DETERMINING THE EXISTENCE OF A LIQUIDATED DAMAGES CLAUSE
OR A PENALTY CLAUSE, ALL PROVISIONS SHALL BE STRICTLY
CONSTRUED [[IN FAVOR OF THE EXISTENCE OF]] TO BE A
LIQUIDATED DAMAGES CLAUSE OR A PENALTY CLAUSE.

(D)    THE PROVISIONS IN THIS SECTION MAY NOT BE
WAIVED IN ANY RESIDENTIAL LEASE OF PROPERTY OR SPACE IN
ANNE ARUNDEL COUNTY OR BALTIMORE CITY.

SECTION 2. AND BE IT FURTHER ENACTED, That this Act
shall take effect July 1, 1975.