Ch. 80

2003 LAWS OF MARYLAND

SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland
read as follows:

Article - Real Property

8-111.1.

(a)     This section applies to all residential leases or subleases in effect on or
after October 1, 1999, which have an initial term of 99 years and which create a
leasehold estate, or subleasehold estate, subject to the payment of an annual ground
rent.

(b)     In any suit, action, or proceeding by a landlord, or the transferee of the
reversion in leased property, to recover back rent, the landlord, or the transferee of
the reversion in leased property is entitled to demand or recover not more than 3
years back rent.

(C) IN ADDITION TO RENT PAYABLE UNDER SUBSECTION (B) OF THIS
SECTION, A LANDLORD MAY NOT RECEIVE REIMBURSEMENT FOR ANY ADDITIONAL
COSTS OR EXPENSES RELATED TO COLLECTION OF THE BACK RENT THAT EXCEED
THE LESSER OF:

(1) ACTUAL EXPENSES; OR

(2) $400 UNLESS THE NOTICE REQUIREMENTS OF §§ 8-402.2 AND 8-403.3
8-402.3 OF THIS TITLE ARE MET.

8-402.2.

(a)     Whenever, in a case that involves a 99-year ground lease renewable
forever, at least 6 months ground rent is in arrears and the landlord has the lawful
right to reenter for the nonpayment of the rent, the landlord, no less than 30 45 days
after sending to the tenant by certified mail, return receipt requested, at the tenant's
last known address, AND ALSO BY FIRST CLASS MAIL TO THE TITLE AGENT OR
ATTORNEY LISTED ON THE DEED TO THE PROPERTY OR THE INTAKE SHEET
RECORDED WITH THE DEED, a bill for the ground rent due, may bring an action for
possession of the property under § 14-108.1 of this article; if the tenant cannot be
personally served or there is no tenant in actual possession of the property, service by
posting notice on the property may be made in accordance with the Maryland Rules.
Personal service or posting in accordance with the Maryland Rules shall stand in the
place of a demand and reentry.

(b)     (1) Before entry of a judgment the landlord shall give written notice of
the pending entry of judgment to each mortgagee of the lease, or any part of the lease,
who before entry of the judgment has recorded in the land records of each county
where the property is located a timely request for notice of judgment. A request for
notice of judgment shall:

(i) Be recorded in a separate docket or book that is indexed under
the name of the mortgagor;

(ii) Identify the property on which the mortgage is held and refer to
the date and recording reference of that mortgage;

- 1180 -