New you can use!

Government Affairs News May 4, 2010 Governor Signs Real Estate Legislation into Law The Governor signed the following real estate bills into law. A complete summary of real estate bills considered by the Maryland General Assembly can be found on the 2010 Bill Summary under Government Affairs. HB 1298/SB 666 – Prohibition of Private Transfer Fees STATUS: PASSED – Effective May 4, 2010 Prohibits developers and sellers of residential property from imposing a private transfer fee on the sale of residential property. Similar to a ground rent, private transfer fees are typically created as a 99 year deed restriction that require a buyer to pay a fee to the original seller of the property every time the property sells. The fees can be as high as 1% of the purchase price. SB 683 – Property Taxes – Bicounty Commissions STATUS: PASSED – Effective June 1, 2010 for tax years beginning after June 30, 2010. Applies the homestead tax credit to property taxes imposed by bicounty commissions like the Parks and Planning Commission in Prince George’s and Montgomery Counties. While principal homeowners are generally protected from large increases in property taxes, principal homeowners subject to property taxes levied by bicounty commissions were not protected from increases in the commission property taxes until this bill passed. HB 6 – Property Tax – Notice – 60 Day Appeal STATUS: PASSED – Effective October 1, 2010 Requires all residential contracts of sale to contain a notice informing the buyer of his/her right to challenge the tax assessment of the property within 60 days of purchase. The contract must contain a statement in substantially the same form as the following: “If any real property is transferred after January 1 and before the beginning of the next taxable year to a new owner, the new owner may submit a written appeal as to a value or classification on or before 60 days after the date of the transfer.” HB 62 – Septic Systems – Nitrogen Removal Technology STATUS: PASSED – Effective October 1, 2010 Requires that MDE provide grants for 100% of the cost differential between a conventional septic system and one utilizing nitrogen reduction technology when a homeowner is required to replace a septic system in Maryland’s Critical Areas. This legislation clarifies the law that was passed last year but which did not provide a statutory guarantee for the cost-differential grants. The grants must be paid until 2012 when the program will be reevaluated. HB 1382/SB 554 – Rental Housing – Lease Termination for Domestic Violence Victims STATUS: PASSED – Effective October 1, 2010 Allows a victim of domestic violence or sexual assault to terminate a lease if granted a final protective or peace order by a court. As introduced the legislation would have created a new protected class for domestic abuse and sexual assault victims for all housing. However, this provision was eliminated from the legislation.