Ground Rents From Maryland to Hawaii: Leasehold Interests in Residential Real Estate
Real Estate Issues › Vol. 31 Nbr. 2, October 2006
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Summary
Maryland and Hawaii, though geographically distant, are burdened by the same historical remnants of an English feudal land system. The practice of conveying property through leasehold deeds that require residents to pay ground rents presents numerous problems for the residential real estate market. The author explains the systems as well as their impact on commerce, real estate development, mortgage finance and property rights.
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Ground Rents From Maryland to Hawaii: Leasehold Interests in Residential Real Estate
MARYLAND AND HAWAII, THOUGH GEOGRAPHICALLY DISTANT, are burdened by the same historical remnants of an English feudal land system.1 In both states, residential property frequently is conveyed by leasehold deeds that require residents to pay a ground rent.
Ground rent agreements require homeowners to rent the land on which their houses sit, often for a term of 99 years, and whoever pays the ground rent has an option to renew at the end of the term. This type of agreement allows the lessor to retain title to the property, meaning that ownership of the dwelling is separate and distinct from ownership of the land.These systems in Maryl...See the full content of this document
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