PARRIS N. GLENDENING, Governor Ch. 729

SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect
June 1, 1997.

Approved May 22, 1997.

CHAPTER 729
(House Bill 1232)

AN ACT concerning

Real Property - Contracts of Sales

FOR the purpose of altering the a certain statement applicable to recordation and
transfer taxes that must be contained in a contract for use in the sale of residential
property used as a dwelling place for one or two single-family units; clarifying that
certain contracts of sale shall comply with certain provisions of law; and generally
relating to contracts of sale of real property.

BY repealing and reenacting, with amendments,
Article - Real Property
Section 14-117
Annotated Code of Maryland
(1996 Replacement Volume and 1996 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:

Article - Real Property

14-117.

(a) A contract for the sale of real property subject to a ground rent shall contain
the following:

(1) Notice of the existence of the ground rent; and

(2) Notice that if the ground rent is not timely paid the effect may be:

(i) That the reversionary owner of the ground rent may bring an
action for possession against the ground rent tenant under § 8-402.2 of this article; and

(ii) As a result of the action for possession, the reversionary owner of
the ground rent may own the property in fee, discharged from the lease.

(b) A contract for the initial sale of improved, residential real property to a
member of the public who intends to occupy or rent the property for residential purposes
shall disclose the estimated cost, as established by the appropriate water and sewer
authority, of any deferred water and sewer charges for which the purchaser may become
liable. If the appropriate water and sewer authority has not established a schedule of

- 4157 -