Bulletin: MD2022001

Dear Associates:

This Bulletin is a summary of legislation changes made by the 2022 Maryland General Assembly relating to real property. All new laws listed below have an effective date of October 1, 2022.

MD Rule 12-102 Amendment:

An action in which a doctrine of Lis Pendens applies in the filing in each county in which real property is the subject, the filing of a lis pendens in This Rule applies to an action filed in a circuit court or in the United States District Court for the District of Maryland that affects title to or a leasehold interest in real property located in this State. (b) Creation--Constructive Notice. In an action to which the doctrine of lis pendens applies, the filing in the land records of a county in which real property that is the subject of the action is located of either (1) a certified copy of the complaint giving rise to the lis pendens or (2) a Notice of Lis Pendens, substantially in the form approved by the State Court Administrator and posted on the Judiciary website, is constructive notice of the pending action as to the subject real property located in that county.

MD-HB40: Effective October 1, 2022

Condominiums - Disclosures to Unit Owners and Prohibited Provisions in Instruments

Clarifying that certain provisions of law related to closed-door meetings of a board of directors of a condominium do not allow the board to withhold or agree to withhold the terms of certain legal agreements from the unit owners; making unenforceable a certain contract unless the contract contains a certain notice; requiring a board to disclose to the council of unit owners any agreement by the board for the purpose of settling a disputed common element warranty claim at least 21 days before the execution of the agreement; etc.

MD-HB91: Effective October 1, 2022

Irredeemable Ground Rents - Notice and Filing Requirements

Requiring the online registry of properties subject to ground leases maintained by the State Department of Assessments and Taxation to include certain information; and requiring the holder of an irredeemable ground rent to file a renewal notice of intention to preserve irredeemability of the ground rent with the Department within a certain period of time.

MD-HB107: Effective October 1, 2022

Requiring the online registry of properties subject to ground leases maintained by the State Department of Assessments and Taxation to include certain information; and requiring the holder of an irredeemable ground rent to file a renewal notice of intention to preserve irredeemability of the ground rent with the Department within a certain period of time.

MD-HB342: Effective October 1, 2022

Authorizing the operating agreement of a limited liability company to provide for the transfer or assignment of an interest in the company to a certain person on the occurrence of certain events regardless of whether the person is a member; authorizing a member of a limited liability company to retain the member's noneconomic interest in the company on assignment of all of the member's economic interest in the company under certain circumstances; etc.

MD-HB615: Effective October 1, 2022

Altering the procedures for dispute settlement between a council of unit owners or a board of directors and an alleged violator under the Maryland Condominium Act; establishing procedures for dispute settlement between a board of directors or other governing body and an alleged violator under the Maryland Homeowners Association Act; and applying the Act prospectively.

MD-HB637: Effective October 1, 2022

Authorizing a title insurer to conduct a required annual review of a title insurance producer in person, remotely by using mail, overnight delivery, or electronic means, or by a combination of in-person and remote methods.

MD-HB663: Effective October 1, 2022

Increasing the maximum fees from $4 to $25 for an original notarial act and, subject to certain regulations, to $50 for performance of a notarial act using communication technology; repealing a certain prohibition on performing a notarial act using communication technology with respect to a will or a trust; authorizing a notary public to use communication technology to take an acknowledgement of a signature remotely under certain circumstances; establishing certain requirements for a notary public to confirm a record remotely; etc.

MD-HB777: Effective October 1, 2022

Requiring the court in an action to partition real property to determine whether the property is heirs’ property for the purpose of partition of the property among certain co-tenants and if so, to determine the market value of the property unless the court makes certain determinations; etc.

MD-HB1448: Effective October 1, 2022

Establishing that the District Court has concurrent civil jurisdiction with a governing body of a county or the Mayor and City Council of Baltimore over a proceeding for adjudication of a violation of certain ordinances.

MD-SB36: Effective October 1, 2022

Authorizing a person to execute an electronic will or remotely witnessed will without a notary public if the supervising attorney creates a certified will that contains a certain form attached or annexed to the will; prohibiting a supervising attorney from being a witness to an electronic will or remotely witnessed will if the will is executed without a notary public; and authorizing a notary public located in the State to perform a notarial act using communication technology for a remotely located individual for a trust instrument.

MD-SB167: Effective October 1, 2022

Authorizing the Maryland Insurance Commissioner to require an insurer that holds a certificate of authority to fulfill the holder's obligations or pay a claim or an amount due instead of, or in addition to, suspending or revoking the certificate; and authorizing the Commissioner, on a finding of a violation of certain provisions of law, to require an insurer, a nonprofit health service plan, or a health maintenance organization to provide to a claimant a certain payment.

MD-SB185: Effective October 1, 2022

Requiring that hearings held by the Maryland Insurance Commissioner be considered open to the public if a member of the public can observe the hearing virtually through an electronic media platform; authorizing the Commissioner to direct that a hearing be held virtually, subject to certain limitations; and requiring the Commissioner to make available a space within the office of the Maryland Insurance Administration with access to the equipment necessary to allow parties to participate in the virtual hearing.

MD-SB293: Effective October 1, 2022

Authorizing a title insurer to conduct a required annual review of a title insurance producer in person, remotely by using mail, overnight delivery, or electronic means, or by a combination of in-person and remote methods.

MD-SB425: Effective October 1, 2022

Authorizing a certain title insurance producer to pay compensation for the provision of real estate brokerage services to associate real estate brokers, real estate salespersons, or certain business entities on behalf of a real estate broker under certain circumstances; and generally relating to compensation for real estate brokerage services.

Authorizing a licensed title insurance producer to pay compensation for the provision of real estate brokerage services to associate real estate brokers, real estate salespersons, or certain business entities on behalf of a real estate broker in accordance with written disbursement authorization provided by the real estate broker.

If you have any questions relating to this or other bulletins, please contact a Stewart Title Guaranty Company underwriter.

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