Maryland Lien: A Complete Guide to Liens in the State

A lien is a legal claim recorded against property to secure repayment of a debt or obligation. Once filed, it gives creditors enforceable rights. Furthermore, it prevents property owners from selling, refinancing, or transferring ownership until the lien is resolved. Since lien laws differ across states, it is important to understand Maryland’s set of rules.

What Is a Lien in Maryland?

The Maryland Code, Real Property Article, Title 9, governs liens in Maryland. A lien is a legal claim or right against property, usually real estate, that secures a debt or obligation. Liens can be applied to real property (homes, land, or commercial buildings) or personal property (vehicles, business assets, or equipment). Liens, once recorded, are public record and serve as notice to lenders looking to purchase the property and title companies of existing obligations. It prevents property owners from refinancing or selling their property until they satisfy the debts. The same is true for a potential purchaser looking for a clear title. Any creditor will have a legal basis and guaranteed payment.

Types of Liens in Maryland

In Maryland, the most common liens include Property Tax Liens, and they are filed by counties and municipalities when property taxes are owed. They are considered high priority and may lead to annual tax lien certificate sales.

Mechanic’s liens are filed and submitted by subcontractors or suppliers seeking payment for unpaid labor and materials. Under Maryland law, they require strict filing deadlines and notice procedures for enforcement.

Judgment liens arise when a creditor wins a court judgment and records it against a debtor's property. These liens attach to real estate once they are in the docket in the circuit court.

Mortgage liens, on the other hand, are standard instruments used by lenders when issuing loans. They are active until the balance has been settled and a release is recorded. In addition, the Internal Revenue Service (IRS) or Maryland Comptroller liens target unpaid federal or state taxes and are attached to both real estate and personal property.

Last but not least, HOA or Municipal Liensare filed by homeowners’ associations for unpaid dues. Likewise, municipalities are able to collect unpaid utilities, code enforcement violation fees, or assessments via these types of liens.

How to Search for Liens in Maryland

In Maryland, lien records are non-confidential information; therefore, the public may request copies. These records may be retrieved via various methods:

• Circuit Court Clerk’s Offices: Each of Maryland’s 23 counties and Baltimore City maintain lien and property filings.
• Maryland Land Records (mdlandrec.net): This is a statewide online system providing access to deeds, mortgages, and lien filings. Users are required to register an account to view records on the website.
• Maryland Judiciary Case Search Portal: It provides public access to court records, including judgment liens.
• Title Companies and Third-Party Services: They are often used in real estate transactions for complete lien searches.

Lien records in general include the lienholder’s name, debt amount, recording date, and legal description of the property.

Lien Records in Major Maryland Cities

As a result of Maryland’s county-level administrative framework, a property search is done in the county where it is located. The following are major locations in Maryland County where individuals may find lien records:

• Baltimore City: Property and lien records are maintained by the Baltimore City Circuit Court Clerk and are available on mdlandrec.net.
• Baltimore County (Towson): In Baltimore County, lien records are preserved by the Circuit Court Clerk. In addition, individuals may schedule an in-person visit or access records online.
• Rockville (Montgomery County): The Montgomery County Circuit Court Clerk maintains lien and property filings.
• Annapolis (Anne Arundel County): The Anne Arundel County Circuit Court Clerk handles lien records in the county.
• Frederick (Frederick County): Individuals may access lien and property records via the Frederick County Circuit Court, although fees for certified copies and advanced searches vary by county.

How Long Does a Lien Stay on Property in Maryland?

In Maryland, the statutory duration of a lien varies depending on the type.

• Property Tax Liens: They remain active until taxes are paid or the property is sold at a tax sale. Redemption rights in most cases last 6 months to 2 years, depending on the county.
• Mechanic’s Liens: They are subject to deadlines and are enforceable within 1 year of filing or expire.
• Judgment Liens: Judgment liens are valid for 12 years in Maryland, and renewals are allowed.
• Mortgage Liens: They attach to a property until the loan is settled and the lender records a release.
• Tax Liens (IRS/State): Federal tax liens last 10 years, while state liens follow Maryland’s collection statutes.

Even after payment, proper documentation for the release of a lien is necessary to clear property titles.

How to Remove a Lien in Maryland

In Maryland, removing a lien requires addressing the debt or appealing the lien. The following are some of the common methods of removing a lien in Maryland:

1. Paying the Debt in Full: Once obligations are satisfied, the lienholder is required to issue a lien release. This is recorded with the circuit court clerk.
2. Negotiating a Settlement: Creditors may agree to partial repayment or alternative settlement terms. This is followed by recording a release of lien.
3. Court Petition: Property owners may challenge invalid, fraudulent, or improperly filed liens in court.
4. Recording a Release or Satisfaction: To clear the property’s title, owners are to ensure that the lienholder submits a release.

In the absence of a release recorded as required by law, liens may remain active in public records for years even after repayment.

Liens in Maryland are a vital part of property law and debt enforcement. They protect the interest of creditors while requiring property owners to meet their obligations. Understanding the types of liens in Maryland, how to find them, the validity period, and the process of releasing them is important for property owners, buyers, and lenders.

Maryland enforces strict rules for notice, filing, and foreclosure on properties. Therefore, contacting a circuit court clerk, a title company, or an attorney is recommended to navigate the process. In addition, property owners are required to follow the proper procedures to clear titles and avoid complications during real estate deals.