DISCLAIMER: For informational and educational purposes only. Nothing here is legal advice, a title opinion, or a commitment to insure, and no attorney-client relationship is created. No one may rely on this content for any transaction or legal decision. Coverage is governed solely by the terms of an issued policy or commitment, and requirements vary by state and underwriter. Consult your own attorney and underwriter. Views are my own and not those of my employer.

Title in a Minute with Shawn Tidwell

State Library

Maryland

Mechanics' liens, recording formalities, future advances, subdivision rules, title premiums and recording taxes in Maryland, in plain English with statute cites. Last researched Oct 2026.

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Title in a Minute · www.titleinaminute.com/library/states/maryland · Printed reference copy.

DISCLAIMER: For informational and educational purposes only. Nothing here is legal advice, a title opinion, or a commitment to insure, and no attorney-client relationship is created. No one may rely on this content for any transaction or legal decision. Coverage is governed solely by the terms of an issued policy or commitment, and requirements vary by state and underwriter. Consult your own attorney and underwriter. Views are my own and not those of my employer.

Key quirkA lien must be established by court petition within 180 days; the court decides whether it attaches.

Maryland at a Glance

Topic Maryland answer Where it comes from
Who can lien Work on a building erected, or repaired or improved to 15% of its value Real Prop. § 9-102(a)
Subcontractor notice Notice of intention to claim a lien within 120 days after doing the work Real Prop. § 9-104
Owner-occupied new home No sub lien if the owner paid the contractor in full before getting the notice Real Prop. § 9-104(a)(2)
Establishing the lien Petition in circuit court within 180 days after the work is finished; the court decides whether the lien attaches Real Prop. §§ 9-105, 9-106
Enforcement Petition to enforce within 1 year after the petition to establish was first filed Real Prop. § 9-109
Bona fide purchaser No lien if legal title passes to a BFP before the lien is established; the filed petition is notice Real Prop. § 9-102(d), (e)
Recording act Race-notice: the later good-faith purchaser must also record first Real Prop. § 3-203
Preparer certification Attorney or party must certify who prepared the instrument Real Prop. § 3-104
Remote notarization Yes, by a Maryland notary using communication technology State Gov't § 18-214
Deed transfer tax State transfer tax 0.5% (0.25% for first-time Maryland homebuyers, paid by the seller), plus county transfer tax (varies) and county recordation tax per $500 (varies); controlling-interest transfers taxed Tax-Prop. §§ 12-103, 12-117, 13-203
Mortgage/indebtedness tax County recordation tax on the debt secured; exempt for purchase-money and, up to the unpaid balance, for a refinance by the original mortgagor (affidavit); indemnity mortgages taxed when the debt is incurred unless under $12.5M Tax-Prop. §§ 12-105, 12-108
Future advances Priority dates from the mortgage for advances and readvances, obligatory or voluntary, up to the face amount Real Prop. § 7-102
Title premium regulation Filed with the Insurance Commissioner; rate changes must be filed and approved Ins. § 11-403

1. Mechanic's Lien Rules

Plain English

Maryland's mechanic's lien is unusual because a court decides whether it exists. The claimant files a petition to establish the lien in the circuit court within 180 days after finishing the work. The judge reviews it and may order the owner to show cause. The lien attaches only by court order (an interlocutory or final order), and the claimant then has 1 year from the first filing to enforce it. Subcontractors must first give the owner a notice of intention to claim a lien within 120 days after doing the work. For an owner building a single-family home to live in, a subcontractor gets no lien if the owner already paid the contractor in full before getting that notice. A lien also can't attach once a bona fide purchaser has taken title before the lien was established, but the filed petition itself is notice to later buyers.

Key Rules

Lienable work (Real Prop. § 9-102(a)). Buildings erected, or repaired, rebuilt, or improved to the extent of 15% of their value, including listed site work and design services.

Subcontractor notice (Real Prop. § 9-104). Written notice of intention to claim a lien within 120 days after doing the work or furnishing the materials, by registered or certified mail or personal delivery (or posting if the owner can't be served). Owner-occupied single-family home being built: no lien if the owner paid the contractor in full before receiving the notice.

Petition to establish (Real Prop. § 9-105). Filed in the circuit court for the county within 180 days after the work was finished or the materials furnished, with an affidavit and supporting papers.

Show cause; interlocutory or final order; bond (Real Prop. § 9-106). The court may order the owner to show cause within 15 days of service. If there is probable cause, an interlocutory order establishes the lien and sets the bond the owner may file to release the property.

Enforcement (Real Prop. § 9-109). The right to enforce expires 1 year from the day the petition to establish was first filed.

Bona fide purchaser; notice (Real Prop. § 9-102(d), (e)). No lien if legal title passes to a BFP for value before the lien is established; the filed petition is notice to purchasers.

Priority against a mortgage. We did not confirm the statutory rule on how an established lien ranks against a mortgage recorded before or after the petition.

Practice Points

  1. Search the circuit court records, not just the land records. Maryland liens start as court petitions.
  2. Get an owner's affidavit and lien waivers for work done in the last 180 days.
  3. Owner-occupied new homes: proof of full payment to the contractor can defeat a sub's lien. Keep it in the file.

Citations

2. Execution and Notarization Requirements for Recording

Plain English

Maryland deeds are recorded in the land records of the circuit court clerk for the county (Baltimore City has its own). The recording act is race-notice: a later buyer beats an earlier recorded deed only if the later buyer took in good faith, without constructive notice, for value, and recorded first. Each deed needs a preparer certification (an attorney certifies it was prepared by or under the supervision of a Maryland attorney, or a party certifies it prepared the deed). Maryland notaries can notarize remotely using communication technology. Expect several taxes at recording: the state transfer tax (0.5%), plus county recordation and transfer taxes that vary by county. A first-time Maryland homebuyer pays a reduced state rate of 0.25%, and the seller pays it.

Key Rules

  • Recording act (Real Prop. § 3-203). A recorded instrument takes effect from its effective date against a later grantee unless that grantee accepted delivery in good faith, without constructive notice, for good and valuable consideration, and recorded first.
  • Preparer certification (Real Prop. § 3-104). Certification by a Maryland attorney, or by a party, that the instrument was prepared by that person. Prince George's County deeds must also state the election district.
  • Remote notarization (State Gov't § 18-214). A Maryland notary may notarize for a remotely located individual using communication technology, with identity proofing and an audio-visual recording.
  • State transfer tax (Tax-Prop. § 13-203). 0.5% of consideration; 0.25% for an owner-occupant first-time Maryland homebuyer, paid entirely by the seller.
  • County recordation and transfer taxes (Tax-Prop. Title 12 and local law). Rates vary.

Practice Points

  1. Check the preparer certification and intake sheet before sending documents to record.
  2. Compute state, county recordation, and county transfer taxes separately; confirm first-time buyer status in writing.
  3. Sheriff's sales and foreclosure sales need ratification. A post-sale payoff does not undo a sheriff's sale (Baltimore XV Properties LLC v. Newsteps' Choice North Homeowners Ass'n, No. 24, Sept. Term 2025 (Md. July 14, 2026), section 7).

Citations

3. Securing Future Advances

Plain English

Maryland has a clear future-advance statute. A mortgage or deed of trust can secure only up to the principal amount stated on its face, counting advances and readvances. Within that cap, an advance or readvance made after the mortgage date has priority from the date of the mortgage against intervening purchasers, mortgagees, and lien creditors, whether the advance was obligatory or voluntary. So in Maryland, a lender's optional advance doesn't lose priority just because a junior lien came along, as long as the total stays under the face amount. Guaranty and indemnity mortgages are treated differently (they aren't capped the same way).

Key Rules

  • Face-amount cap (Real Prop. § 7-102(a)). No lien for principal over the aggregate amount stated on the face of the mortgage or deed of trust, whether or when advanced or readvanced. Exceptions: guaranty, endorser, surety, and indemnity mortgages.
  • Priority of later advances (Real Prop. § 7-102(b)). Priority dates from the date of the mortgage against intervening purchasers, mortgagees, trustees, and lien creditors, regardless of whether the advance was obligatory or voluntary.
  • Effect on mechanic's liens. How § 7-102 interacts with a later-established mechanic's lien on construction draws.

Practice Points

  1. Read the face amount. Advances above it aren't secured.
  2. HELOC payoffs: get a signed freeze and close request; the line stays secured up to the face amount until released.
  3. Construction loans: confirm how later draws rank against any pending lien petition.

Citations

4. Subdivision Statutes and Regulations

Plain English

Maryland subdivision approval is local. Counties and municipalities adopt subdivision regulations under the Land Use Article, and the planning commission approves plats. The clerk records a subdivision plat only if it meets the State's technical plat standards (scale, courses and distances, curves, north arrow, and similar requirements) in Real Prop. § 3-108, which applies in addition to local rules (it doesn't apply in Queen Anne's County).

Key Rules

  • Plat recording standards (Real Prop. § 3-108). The clerk records a subdivision plat only if it meets the section's technical requirements; in addition to other plat laws; not applicable in Queen Anne's County.
  • Local subdivision regulation (Land Use Article). Counties and municipalities adopt and administer subdivision regulations.

Practice Points

  1. New lot? Get the recorded, approved plat and check plat notes.
  2. Metes-and-bounds splits: confirm county approval or an exemption.
  3. Check for forest conservation and critical area notes on Maryland plats.

Citations

5. Title Premium Rates

Plain English

Maryland title insurers must file all rates or premiums, rate information, and policy and guarantee forms with the Insurance Commissioner. A change in rates or forms can't be used until a report showing the change is filed with and approved by the Commissioner. An insurer can meet the requirement through a licensed title rating organization.

Key Rules

  • Filing (Ins. § 11-403(a)). File all rates or premiums, supplementary rate information, and forms (except special or unusual guarantees).
  • Approval of changes (Ins. § 11-403(c)). No change in rates or forms unless a report of the change is filed with and approved by the Commissioner.
  • Rating organization (Ins. § 11-403(d)). Filings may be made through a licensed title rating organization.

Practice Points

  1. Use only approved forms and endorsements.
  2. Separate premium from settlement fees on the Closing Disclosure.

Citations

6. Recording Taxes & Fees on Deeds and Mortgages

Plain English

Maryland has three layers: a county recordation tax (each county sets its rate per $500), a state transfer tax of 0.5%, and a county transfer tax in most counties. Recordation tax also applies to a mortgage or deed of trust, but a purchase-money loan recorded with the deed and the refinanced balance of an existing loan by the original borrower are exempt. Maryland is one of the few states that taxes indemnity mortgages (a mortgage that secures a guaranty).

Key Rules

(a) Deed transfer, conveyance or excise tax

  • State transfer tax. 0.5% of consideration (§ 13-203(a)). For a sale of improved residential property to a first-time Maryland homebuyer who will occupy it as a principal residence, 0.25%, and the seller pays it (§ 13-203(b)); each grantee must sign a statement under oath.
  • County recordation tax. Each county (and Baltimore City) sets a rate per $500 (or fraction) of consideration or secured debt (§ 12-103).
  • Controlling-interest transfers. Transfer of a controlling interest (more than 80% of stock value, capital and profits interest, or beneficial interest) in a real property entity is taxed as if the property itself were conveyed (§ 12-117(a)(2)).
  • Proposed legislation. A 2026 bill (HB 1213) would have replaced the flat 0.5% state rate with graduated rates; it got a committee hearing and was not enacted. The 2026 statute text still shows 0.5%.

(b) Mortgage, indebtedness or intangible tax

  • Recordation tax on loans. Applies to the principal debt secured by a mortgage or deed of trust (§ 12-105).
  • Refinance exemption (§ 12-108(g)). Not taxed to the extent it secures refinancing of no more than the unpaid principal of an existing mortgage, indemnity mortgage or deed of trust, when the refinancing is by the original mortgagor (or with the original mortgagor's spouse), or by the settlor of an inter vivos trust. A statement in the recitals or a sworn affidavit must give the unpaid principal. It is not limited to the same lender.
  • Purchase-money mortgages are exempt if given by the buyer in the same transaction as the taxed deed, the instrument recites that it secures purchase money, and it is executed within 30 days of the deed's execution and recorded within 30 days after the deed is recorded (§ 12-108(i)).
  • Indemnity mortgages (§ 12-105(f)(7)). A mortgage securing a guaranty is taxed when and as the guaranteed debt is incurred, as if the guarantor were primarily liable. It does not apply if tax was paid on another instrument securing the same loan, if the guaranteed loans in the same transaction total less than $12,500,000, or for supplemental instruments up to the outstanding principal.
  • Additional advances. The borrower remains liable for recordation tax on additional debt (§ 12-105(f)).

(c) Other recording taxes and fees

  • Intake sheet and tax certification (Real Prop. § 3-104(a)). An instrument that changes ownership may be recorded only if endorsed with the county tax collector's certificate and accompanied by a complete intake sheet (or endorsed by the assessment office).

Practice Points

  1. Every refinance: get the original-mortgagor affidavit, or the full new loan is taxed.
  2. Guaranty-secured loans of $12.5 million or more: budget recordation tax on the indemnity mortgage.
  3. Check county rates every time: they differ widely.

Citations

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