Videos · Buying a home
What ground rent is in Maryland and how to redeem it
Stephen explains what a ground rent is, how Maryland law sets the price to buy it out, and the steps to redeem it so you own the land under your house.
Stephen Wilson · · 2:43
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Filmed in January 2023. Title company fees mentioned in the video have changed; ask for a current quote.
What this video covers
- A ground rent means someone else owns the land under the house and you pay them a small yearly rent. Many older Baltimore City rowhomes still have one.
- Maryland law sets the buyout price. For most ground rents it is the yearly rent divided by 6 percent: $120 a year costs $2,000 to redeem, $90 a year costs $1,500. Older leases can use a different rate.
- The ground rent owner can agree to less, but cannot demand more than the legal price.
- To redeem it, you give the ground rent owner written notice, order a title search for liens or judgments, then close on a deed. You pay the redemption price, any back rent owed, and recording costs.
- Once the deed is recorded the ground rent is gone and you own the property in fee simple.
- If the ground rent owner cannot be found, the State Department of Assessments and Taxation (SDAT) has a process to redeem it through the state.
- Talk to a title company or real estate attorney before you start. SDAT has the forms.
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Filmed in 2023, when Stephen was with a different brokerage. This is general information, not legal or tax advice; rules change, so confirm the details for your situation.