MD Underwriting Summary

Search/Exam

• Minimum Search Requirements -- Case law – 60 years or as necessary. Coe v Hayes, 105 Md. App. 778, 785 (1995). Dept of Natural Resources v Welsh, 308 Md. 54, 57 (1986).

B) Maryland does not have a Marketable Title Act.

C) Other than case law, there are no applicable title examination standards.

• Plant or other search restrictions -- No
• Additional Requirements for REO Searches --
• Foreclosure Checklist --
• Special Searches Required (Code, HOA, Utilities)? --
• Survey Requirements -- Owner – Yes; Loan - No

UPL

• UPL Hot Button Issues -- Doc Prep, Uninsured Closings

Maryland requires that only licensed title insurance producers or attorneys conduct closings if title insurance is being offered. Only licensed attorneys may close uninsured transactions (cash transactions) (i.e., Only licensed attorneys may close transactions where title insurance is not being offered/purchased according to the UPL requirements.).

Witness Requirements

No separate witness requirement. In general, a deed containing the names of the Grantor and Grantee, a description of the property and identification of the interest to be granted is sufficient, if executed, acknowledged and recorded. See Maryland Real Property Code Sections 4-101 and 4-103.

Property Tax

The Maryland Department of Assessments and Taxation (SDAT) performs property value assessments. Maryland’s counties (23), Baltimore City and various incorporated cities (155) issue property tax bills based on the SDAT tax assessments. See www.dat.state.md.us for more details. The locality establishes the tax rate. Much of this information is online at the website for each locality.

Mortgage/Transfer Tax

Each County (and Baltimore City) in Maryland has its own recordation tax which varies. All such information may be found at: http://www.dat.state.md.us/sdatweb/recordation.html

Spousal Joinder Requirements/Homestead

Maryland abolished both dower and curtesy in ___. Maryland does not require spousal joinder by the spouse not in title.

Power Of Attorney

See Maryland Real Property Code Section 4-107 for execution and recordation requirements.

See Maryland Estates & Trusts Code Section 17-101 et seq. for general provisions related to the General and Limited Power of Attorney Act. The Act became effective in 2010 and is modeled after the Uniform Power of Attorney Act. The Act contains statutory forms (see Sections 17-201 through 17-204), specifically a “Personal Financial Power of Attorney” (about seven printed pages in length) that includes a clause addressing Real Property (buy, sell, convey, mortgage, borrow and so forth) unless limited by Special Instructions or a termination date (see Section 17-202 for the Form) and a “Limited Power of Attorney” (roughly 20 printed pages). The “check the box” style Form is designated “Limited,” in part because it does not address heath care decisions. However, if all of the powers are given, it is more comprehensive then the “Personal Financial Power of Attorney.”

Real Property is Paragraph A under “Subjects and Authority” in the Limited Power of Attorney. Express powers granted related to real estate should be specifically identified. The Form also contains provisions for “Grants of Specific Authority” and “Limitations on Agent’s Authority” that you should review closely as well as the “Effective Date” and optional “Termination Date.” See Section 17-203 for the Form. Each Form requires two witnesses.

Code Section 17-204 provides a statutory form for the Agent’s certification as to the validity of the Power of Attorney and the Agent’s Authority.

Who May Serve As Trustee On Deed Of Trust

Under Maryland Rule 14-202(a) a trustee may be an individual or an entity and does not need to be a Maryland Resident.

Time Limitations

• US Judgment Liens -- 20 years
• State Court Judgment Liens -- 12 years – can be renewed
• Federal Tax Liens -- 10 years (+ 30 days)
• State Tax Liens -- No expiration
• Estate Tax Lien -- 10 years
• State Inheritance Tax Liens -- No expiration
• Mechanics Liens -- 1 year
• Financing Statements -- 5 years
• Mortgages -- 40 years (from due date if no maturity date)
• HOA Liens -- 3 years
• Condominium assessments --
• Child Support Liens --

Odd Stuff

• Maryland Annotated Code, Real Property Section 3-105.2 allows a licensed settlement agent, title insurer or lawyer to execute a release affidavit and present the cancelled check or wire disbursement (with proper authentication from bank)