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Washington, DC suburbs in Maryland Calvert County, Charles County, Montgomery County, and Prince George's County
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Old 10-07-2008, 11:47 AM
 
Location: If I tell ya I got to kill ya!
218 posts, read 547,011 times
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Im looking at quite a few homes in PG county area....Clinton and Fort washington among other areas and I see a few homes say something about ground rents? What is that?
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Old 10-07-2008, 11:52 AM
 
Location: Stuck on the East Coast, hoping to head West
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The only time I've seen ground rent is if you're looking at something like a mobile home. Generally, you own the mobile home, but rent the land. That's the only time I've seen a reference to ground rent.
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Old 10-07-2008, 12:10 PM
 
Location: If I tell ya I got to kill ya!
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These homes arent mobile...they are new developments.
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Old 10-07-2008, 12:38 PM
 
Location: Kensington, MD
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It follows the same principal as a mobile home. When you buy you "rent" the land the house is on. This is a practice that goes back to when Maryland was originally founded. It is most common in Baltimore but there are a few in Prince George's county. I don't think you will find them anywhere else in the state.
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Old 10-07-2008, 01:10 PM
 
Location: If I tell ya I got to kill ya!
218 posts, read 547,011 times
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so inother owrds I own the house but not the land? how can anyone sell a house that has a foundation but not the land...so if I decide to move I can tear my house up?
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Old 10-07-2008, 06:24 PM
 
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Do the listings say that there is a ground rent, or does it say "buyer to verify" ground rent? If you're looking at foreclosures that are for sale, some of them say subject to ground rent verification, or something of that nature.

It's not that they have a ground rent per-say, but rather that there MIGHT be a ground rent and it needs to be verified one way or the other. Think of it as another way for the bank to reduce their liability in selling a home through technical jargon. Thanks to all the banks working hard to make it more difficult to sell a home they wrote a toxic mortgage on.

Last edited by TeamBenya; 10-07-2008 at 06:25 PM.. Reason: error
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Old 10-07-2008, 06:28 PM
 
250 posts, read 1,377,581 times
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Quote:
Originally Posted by American Arrogance View Post
so inother owrds I own the house but not the land? how can anyone sell a house that has a foundation but not the land...so if I decide to move I can tear my house up?
Not quite. Ground Rents can be complicated. Yes, you own the house. The land is on long term lease, which is the ground rent. It's usually a 99 year type of situation. When the house is sold, the cost of the annual ground rent becomes responsibility of whomever owns the house. It's illegal to create a new ground rent in MD, and they're trying to slowly phase them out. It was a pretty popular concept in Baltimore, but fairly rare in other areas of the state.
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Old 10-07-2008, 07:18 PM
 
Location: 757
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It is still very popular in Baltimore..Don't think it is being phased out by any means. You can always buy the ground rent and be done with it...Just a thought
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Old 10-07-2008, 09:31 PM
 
250 posts, read 1,377,581 times
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Quote:
Originally Posted by BikesareBetter View Post
It is still very popular in Baltimore..Don't think it is being phased out by any means. You can always buy the ground rent and be done with it...Just a thought
I wouldn't say it's "popular", but it's not uncommon. Here's what I meant by "phased out".

1) As of July 1, 2007, NEW Ground rents cannot be created. This means that in the future, the number of ground rent situations in the state of MD can only go down, not up, thus slowly phasing out an archaic system of real estate possession.

2) People with a ground rent have the right to buy out the ground rent, or "redeem" it. The rent holder (the guy that owns the land) is legally required to honor such a request. This means anyone that is in a ground rent that wants to buy it out has the absolute right to, at any time. Again, this is to encourage the reduction of ground rents.
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Old 07-03-2009, 03:15 PM
 
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Another meaning for "ground rent" (pretty similar) comes from the Fisicrats (a group of 16th Century thinkers attempting to apply logical analysis to government matters). They defined "ground rent" or "locational rent" as that portion of all rent that a parcel could bring which is dependent only on the size and location of the land. Say you own a parcel. If everything you grew or built (including wells) were destroyed . . . you could still lease your land for its ground rent. The Fisicrats noted that the owner is in no way responsible for any increase in the ground rent. Ground rent for a parcel increases only because more people come to live around it. The Fisicrats reasoned that since it is society as a whole that increases ground rent . . . then society should regain some of that value by taxing that increase. The Fisicrats felt that taxing ground rents should be the primary source of government revenue.
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