Md. R. Prop. Act'n 12-501

As amended through September 13, 2024

Rule 12-501 - Redemption of Ground Rent Vested in Trustee Without Power of Sale

(a)Scope. This Rule applies to the redemption of a ground rent, whether reserved by lease or sublease, that is vested in a trustee without a power of sale. As used in this Rule,trustee includes a trustee under a will, deed, or other instrument, a life tenant, and the holder of a defeasible estate.

(b)When Action May Be Brought--Venue--Parties. When a ground rent that is or becomes redeemable is vested in a trustee without a power of sale, the owner of the leasehold or the trustee may file an action for redemption in the county where the land subject to the ground rent is located. The owner of the leasehold interest and the trustee are necessary parties. The plaintiff may join, but is not required to join, a remainderman or any other person who has or may have a beneficial interest in the land and who may be entitled to share in the redemption money.

(c) Complaint--Content. In addition to complying with Rules 2-303 through 2-305, the complaint shall be under oath and shall set forth:

(1) the location and description of the land;

(2) the date and place of record of the lease or sublease by which the reversion and rent were created;

(3) the amount of the annual rent and the redemption price of the leasehold interest;

(4) a statement that the owner of the leasehold desires to redeem the ground rent; and

(5) a statement that the notice required by law or by the lease has been given by the owner of the leasehold interest.

(d) Bond. Unless the trustee has previously given a bond that protects the redemption money or has been excused from filing a bond by the instrument creating the trust, the trustee shall file a bond as prescribed by Rule 10-702. Upon deposit of the redemption money by the trustee in the manner provided by Rule 10-705, the bond shall be released regardless of the amount of the entire estate or the amount of the redemption money.

(e)Order of Conveyance--Appointment of Substitute Trustee. The court may order the trustee to convey the reversion in the land to the owner of the leasehold interest upon payment of the sum of money for which the ground rent is redeemable together with the amount of annual rent accrued to the date of payment. If the trustee is the owner of the leasehold interest, the court may appoint a substitute trustee to receive the redemption money and execute the deed.

(f)Accounting and Investment by Trustee. The trustee shall account promptly to the court for the redemption money received by the trustee. The court may order the redemption money invested for the purpose of holding it in place of the redeemed ground rent for the benefit of the persons entitled to the redeemed ground rent.

(g)Costs. If the relief sought in the complaint is granted, the court costs of the action, including the expenses of obtaining a bond, shall be paid out of the money received for the redemption. Otherwise, the court shall allocate costs pursuant to Rule 2-603.

Md. R. Prop. Act'n 12-501

This Rule is derived as follows:

Section (a) is derived from former Rules Y70 and Y71.

Section (b) is derived from former Rules Y71, Y72, and Y73.

Section (c) is derived from former Rule Y74.

Section (d) is derived from former Rule Y76.

Section (e) is derived from former Rule Y77.

Section (f) is derived from former Rule Y78.

Section (g) is derived from former Rule Y79.

Adopted June 5, 1996, eff. 1/1/1997.

HISTORICAL NOTES

Derivation:

Maryland Rule of Procedure Y70, adopted Sept. 15, 1961, eff. Jan. 1, 1962, related to definitions, rescinded June 5, 1996, eff. Jan. 1, 1997.

Maryland Rule of Procedure Y71, adopted Sept. 15, 1961, eff. Jan. 1, 1962, related to when petitions may be brought, rescinded June 5, 1996, eff. Jan. 1, 1997.

Maryland Rule of Procedure Y72, adopted Sept. 15, 1961, eff. Jan. 1, 1962, amended April 6, 1984, eff. July 1, 1984, related to venue, rescinded June 5, 1996, eff. Jan. 1, 1997.

Maryland Rule of Procedure Y73, adopted Sept. 15, 1961, eff. Jan. 1, 1962, related to parties, rescinded June 5, 1996, eff. Jan. 1, 1997.

Maryland Rule of Procedure Y74, adopted Sept. 15, 1961, eff. Jan. 1, 1962, related to contents of petitions, rescinded June 5, 1996, eff. Jan. 1, 1997.

Maryland Rule of Procedure Y76, adopted Sept. 15, 1961, eff. Jan. 1, 1962, related to bonds, rescinded June 5, 1996, eff. Jan. 1, 1997.

Maryland Rule of Procedure Y77, adopted Sept. 15, 1961, eff. Jan. 1, 1962, related to orders of conveyance, rescinded June 5, 1996, eff. Jan. 1, 1997.

Maryland Rule of Procedure Y78, adopted Sept. 15, 1961, eff. Jan. 1, 1962, related to accounting, rescinded June 5, 1996, eff. Jan. 1, 1997.

Maryland Rule of Procedure Y79, adopted Sept. 15, 1961, eff. Jan. 1, 1962, amended eff. July 1, 1974, related to costs, rescinded June 5, 1996, eff. Jan. 1, 1997.