Legal Question in Real Estate Law in Maryland

In fee contract

I have a Sales contract to buy a house in Balt. Co. in which I am to settle in two days. The title Co. just found out that there is a ground rent attached to the property. Seller disclosed it but realtor missed it. I am now asked to either have the seller redeem it at settlement or for me to take a credit and continue paying on the ground rent. I want a clear title before settlement. Please explain ground rent. And if I take one of the two options above -- will I have a clear title? Additionally, if the appraisal did not include ground rent -- what happens?


Asked on 8/29/00, 3:09 pm

1 Answer from Attorneys
Daniel Press Chung & Press, P.C.

Re: In fee contract

Ground rent means you don't really own the property, you lease it for a 100 year (usually) renewable term. Apart from owing this rent, it is not that much different from owning the property, but missed payments can result in loss of the property. If your contract calls for you to acquire the fee (fee simple title = outright ownership), you should insist on it (not on a discount to continue rent payments). The sellers have a right to redeem, so you should insist on their exercising it and bearing the cost.

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Answered on 10/03/00, 10:38 am


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