According to The People’s Law Library of Maryland, “Ground rent is a periodic monetary payment by a tenant to a ground lease holder who holds a reversionary interest in the property or “ground” underneath a home.” But what does that actually mean in plain English? Basically, for certain properties (most of which are located in Baltimore City), homeowners are required to pay a small sum of money (typically $50.00-$100.00 per year) to a person or company known as the ground rent holder. This concept, which dates back to the 18th Century, still causes confusion to homeowners and mortgage companies unfamiliar with the practice. If it’s that simple, why is it so confusing? Ground rent is an unfamiliar Read More
What the Heck is Ground Rent?
