Articles Posted in Real Estate

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The Board of Liquor License Commissioners for Baltimore City (BLLC) is responsible for limiting and/or restricting the number of establishments permitted to sell alcohol in Baltimore City. The BLLC is responsible for processing applications for and transfers/renewals of licenses to sell beer, wine and liquor; conducting period inspections of licensed businesses; collecting all license fees and fines; fining, suspending, or revoking licenses; and licensing and regulating adult entertainment business in Baltimore City. 

 

Are there different liquor licenses in Baltimore City? 

Yes, there are various types of liquor licenses that can be obtained in Baltimore City depending on the purpose for which the licensed will be used. The licenses consist of (1) Beer and Wine, or (2) Beer, Wine, and Liquor.  Each category includes different classes depending on the type of establishment, purpose for the license, how the liquor will be sold, days the liquor will be sold, and times the liquor will be sold in Baltimore City.  

 

How do you apply for a Baltimore City Liquor License? 

To apply for a Baltimore City liquor license, an application must be filed with the BLLC for license transfer, expansion, renewal, or a new restaurant license if certain parameters are met. The application packet consists of various documents and forms that are to be filed with the BLLC, and strict compliance with the application packet and requisite documents is mandatory. Specifically, there is an application checklist which lists all the necessary documents to be submitted, however, even with the checklist in hand, this is still a complicated process and attention to detail is important. These various forms and documents include financial forms, floor plan diagrams, a background check confirmation report, corporate papers, an agreement of sale, etc. An application fee must accompany the application packet at the time the application is submitted. 

More information about the application process can be found here: Application Process | Liquor License Board (baltimorecity.gov) 

 

What happens after the application is submitted? 

After the application and all required supplemental documents/forms have been submitted to the BLLC, a hearing will be scheduled and held. Hearings are open to the public and generally take place at City Hall. The schedule for all upcoming hearings is on the BLLC website and can be found here: Liquor License Hearing Schedules.

  

Can a liquor license issuance, transfer or renewal be protested? 

Yes, during a liquor license hearing, citizens are permitted to protest any issuance of a new license, a transfer of location, or a transfer of ownership of an establishment in various ways. Under Alcoholic Beverages & Cannabis Article 12- 1508 of the Annotated Code of Maryland, if more than fifty percent of the real property owners and certain tenants object to the issuance of the license in a precise manner, the Board must deny the application.  

Under Alcoholic Beverages & Cannabis Article 4-406, if ten or more residents and/or property owners in the immediate vicinity in which the licensed place of business is located object to the renewal of the license based on specific complaints, the BLLC may not renew the license until a public hearing has been held, 

The Board may also, on its own initiative, protest the renewal of a licensed premises based on specific complaints.  

 

What happens after the issuance, transfer, or renewal of a liquor license? 

Even after successful completion of the liquor license application and hearing process, there are additional steps that must be taken to finalize the issuance, transfer and/or renewal of a liquor license.  The BLLC provides a Hearing Receipt, which sets forth additional steps and required documents to be submitted before formal issuance of the liquor license, including but not limited to, payment of outstanding taxes, obtaining a trader’s license, obtaining a certificate of occupancy, taking an alcohol awareness course, and obtaining a sales and use tax license. 

 

Navigating the Baltimore City liquor license application and hearing process can be a difficult and stressful process.  If you are currently applying or thinking of applying for a new liquor license or the transfer/renewal of an existing liquor license, we encourage you to speak to our experienced attorneys who can assist with navigating this process from start to finish. 

 

Contact an experienced liquor license attorney.

If you have questions regarding liquor licenses in Baltimore City or would like assistance in other hospitality, zoning, or real estate matters, please do not hesitate to contact Silverman Thompson or reach out to liquor license expert Joeseph R. Woolman III, Esq. directly: 

 

Joseph R. Woolman III, Esq. 

jwoolman@silvermanthompson.com 

(410) 385-2225 

 

Erin D. Brooks, Esq. 

ebrooks@silvermanthompson.com  

(410) 385-2225 

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What if I purchase a home “as-is” and later discover latent defects that are significant and expensive to repair?

Buyers can submit to mediation through Maryland REALTORS® to recover damages associated with latent defects not disclosed at the time of sale.

In the State of Maryland, the standard Residential Contract of Sale form used by Maryland REALTORS® includes a provision that allows for mediation of disputes arising out of the sale and purchase of a residential property. Mediation is a process where parties attempt to resolve a dispute without, or before the filing of a lawsuit with the assistance of a neutral mediator. When a buyer of residential property discovers a latent defect after purchasing property and it is clear the seller knew about said defect and failed to disclose it to the buyer, mediation through Maryland REALTORS® can be an effective process to achieve a resolution. A copy of the Residential Contract of Sale form can be found here.

 

What is a latent defect?

In Maryland, a “latent defect” in residential property is a material defect that the seller knows about and (1) is not visible, (2) could not be reasonably expected to be uncovered by the buyer before the purchase is made, and (3) could endanger the health or welfare of the buyer.

A “material defect,” as encompassed in the term latent defect, is a significant issue with a residential property’s system or structure that adversely affects the property’s value, poses a health or safety risk, or undermines the buyer’s capacity to enjoy it.  Notably, a material defect is a substantial problem, as opposed to a minor or aesthetic issue. Examples of material defects include, but are not limited to:

  • Major structural issues or other decay in the property’s architecture, including damaged foundation, sloped floors, bowed walls, or horizontal cracks.
  • Significant roof or basement leaks that require extensive repairs.
  • Outdated and malfunctioning plumbing or electrical issues that make the property unsafe.
  • The presence of asbestos, lead paint, mold, or other hazardous materials.

As you can see from the above examples, these material defects would not be visible or expected to be uncovered by a buyer before purchasing the property, and all pose significant health and safety risks.

 

Does a seller have a duty to disclose latent defects, even if the property is being sold “as-is”?

Yes, sellers of residential property, even if it is being sold “as-is,” have a duty in Maryland to disclose any latent defects of which the seller had actual knowledge and that a buyer (or the buyer’s home inspector) could not reasonably expect to find by a visual inspection and pose a direct threat to health or safety of the buyer.  While a seller can still indicate that the property is being sold “as-is,” the seller is still required to indicate latent defects by completing the Maryland Residential Property Disclosure and Disclaimer Statement, which is included in the Residential Contract of Sale form used by Maryland REALTORS®.

 

What if the seller failed to disclose a latent defect and as a result, I now have significant and expensive costs to repair the property?

Our office can help you review the contract of sale to determine if you are eligible for mediation with the Maryland REALTORS®.  Importantly, all claims or disputes between a buyer and seller must be submitted to mediation with the Maryland REALTORS® within one year following the closing date of the sale, so you should not delay in contacting an attorney.  If a latent defect is discovered after one year, you may still have legal recourse.  In Maryland, the standard statute of limitations to file a claim is three years, so if you miss the one-year mediation deadline, you should still contact an attorney to determine if you have a viable claim.

 

Can I skip mediation offered by Maryland REALTORS® and immediately file a lawsuit in court?

Mediation is generally faster, simpler, and often less expensive than litigation.  However, mediation is a voluntary process that must be agreed to by the buyer and seller.  Under certain circumstances, you may choose to bypass the mediation and immediately file a lawsuit in state court.  However, the Maryland Residential Contract of Sale expressly states that if you file a lawsuit in state court and ultimately lose, you will be responsible for paying the other party’s attorneys’ fees, in addition to your own.  Our office can provide advice regarding whether you should proceed with mediation or litigation based on the unique facts of your case.

If you need assistance with reviewing a Maryland Residential Contract of Sale and/or believe you have a dispute or claim to submit to mediation with Maryland REALTORS®, please do not hesitate to contact Silverman Thompson’s experienced real estate attorneys by phone or e-mail for a free consultation:

 

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Senate Bill 19 requires the District Court to shield all court records relating to the filing of a Failure to Pay Rent Complaint within sixty (60) days after the final resolution of the nonpayment of rent case if the case did not result in a judgment for possession. Further, upon the filing of a motion by a tenant, the District Court may also shield court records relating to a failure to pay rent proceeding that did result in a judgment for possession if:

(1) The tenant demonstrates by a preponderance of the evidence that the paid the judgment amount prior to eviction and stayed in the property (i.e., the tenant exercised their right of redemption) and at least 12 months have passed since the entry of the judgment;

OR

(2) The court determines that there is otherwise good cause to shield the court records.

 

If there is a rent escrow case associated with a failure to pay rent case, only the records relating to the failure to pay rent case will be shielded.

The shielding of these records means that landlords will not be able to obtain information about the prior payment history of prospective tenants.

 

If you need assistance with understanding recent changes in Maryland landlord-tenant law or issues involving failure to pay rent complaints in Maryland, please do not hesitate to contact us by phone or e-mail:

Avery Barton Strachan, Esq.

astrachan@silvermanthompson.com

(410) 385-9113

 

Kerri L. Smith, Esq.

ksmith@silvermanthompson.com

(410) 385-9106

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What is the Tenant Safety Act of 2024?

Pursuant to House Bill 1117, effective October 1, 2024, the statute commonly known as the “rent escrow statute” will be amended to:

  • Allow multiple tenants to join as plaintiffs in a Petition in Action of Rent Escrow (commonly known as a rent escrow action);
  • Include a rebuttable presumption that a tenant is entitled to the adjudication of a request for rent abatement;
  • Include a rebuttable presumption that a tenant is entitled to an abatement of prospective rent; and
  • Allow a court who orders any relief to a tenant in a rent escrow matter to make a claim for recovery of attorney’s fees, costs and expenses related to litigation.

Permitting multiple tenants to join as plaintiffs in the same Petition in Action of Rent Escrow against a landlord will primarily affect multi-family properties with several units, where a group of tenants may make the same allegations in a rent escrow actions such as mold, flooding, rodents, or other similar issues that affect several units.

Significantly, the changes in the law also place the burden on the landlord to prove that it has not breached the warranty of habitability, as the court will presume that a tenant is entitled to abatement of both past due and prospective rent unless and/or until the landlord convinces the court otherwise.

These changes will impact all Maryland landlords.

 

If you need assistance with understanding recent changes in Maryland landlord-tenant law or issues involving rent escrow cases filed against landlords in Baltimore City, Baltimore County or the surrounding counties, please do not hesitate to contact us by phone or e-mail:

 

Avery Barton Strachan, Esq.

astrachan@silvermanthompson.com

(410) 385-9113

 

Kerri L. Smith, Esq.

ksmith@silvermanthompson.com

(410) 385-9106

 

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What is constructive eviction?

An actual eviction occurs when a commercial landlord brings legal action seeking possession of leased premises from a commercial tenant, is awarded possession in Court, schedules an eviction of the tenant with the sheriff’s office, and the eviction is carried out by the sheriff.

A constructive eviction occurs when a commercial landlord does not physically or legally evict a commercial tenant, but rather acts, or fails to act, in a manner that interferes with a tenant’s use and enjoyment of the leased premises significantly enough to constitute an eviction in fact. For there to be a “constructive eviction,” a commercial tenant must be deprived of possession or beneficial use of the leased premises, which results in the tenant’s abandonment of the premises within a reasonable time.

 

To establish that there has been a constructive eviction in a commercial tenancy, a commercial tenant must prove that:

  1. The commercial landlord acted, or failed to act, in a way that substantially interfered with the tenant’s use and enjoyment of the leased premises;
  2. The landlord’s actions or inactions cause the leased premises to be unusable for the purpose it was rented;
  3. The commercial tenant gave the commercial landlord notice of the problem that led to the interference with the tenant’s use of the premises, and the landlords failed to respond and/or resolve the problem; and
  4. The tenant vacated the premises in a reasonable amount of time after the landlord failed to resolve the problem.

 

What are examples of circumstances that may constitute constructive eviction in a commercial lease?

The scope or magnitude of the landlord’s interference necessary to constitute a constructive eviction must go to the essence of what the landlord is to provide. There must be evidence that the landlord substantially interfered with the tenant’s use of the premises. While there are many acts or situations that would constitute a breach, common ones include:

  • Eliminating a significant number of parking spots.
  • Permitting persistent, loud construction (except if for necessary repairs).
  • Routinely playing loud, intrusive music in common areas.
  • Failure to provide electricity.
  • Failure to provide operable elevator service.
  • Failure to furnish adequate heat or air conditioning.
  • Failure to furnish sanitary restroom facilities.
  • Structural defects, such as persistent leakage of water through the roof, ceiling, or walls because of landlord’s fault.
  • Serious defects in the sewer, plumbing, or drainage.
  • Actions that deny customers access to the premises.

 

Notably, there are times when disturbances to quiet enjoyment are out of the landlord’s control, or permitted by the commercial lease, which would not constitute a constructive eviction, such as:

  • Construction conducted by the city in which the building is located.
  • Aesthetic issues inside the building and/or premises, such as the need to repaint or replace carpet.
  • Aesthetic issues outside the building, such as the need to clean windows, power wash the building, or maintain decorative landscaping.
  • Neighboring businesses that create unnecessary noise.
  • Major renovations to the building and/or premises.

When would a commercial tenant claim that a constructive eviction has occurred?

When a commercial tenant is unable to use its leased premises in the manner for which it was leased, the tenant does not receive the benefit of its bargain. In those circumstances, if a commercial tenant believes there has been a constructive eviction, the commercial tenant must vacate the premises in a reasonable amount of time, as the failure to do so results in a waiver of any potential constructive eviction claim.  After vacating, a commercial tenant may argue that the landlord has constructively evicted them and then may withhold rent and vacate the leased premises. If a commercial landlord seeks the rent owed under the commercial lease from the tenant, the commercial tenant may raise a constructive eviction as a defense to the rent owed. If the facts justify a legal finding of a constructive eviction, a commercial tenant will be released from liability under the lease.

 

If you have questions regarding constructive eviction or would like assistance in reviewing a commercial lease, please do not hesitate to contact us by phone or email:

 

Avery Barton Strachan, Esq.

astrachan@silvermanthompson.com

(410) 385-9113

 

Kerri L. Smith, Esq.

ksmith@silvermanthompson.com

(410) 385-9106

 

Erin Donohue Brooks, Esq.

edonohuebrooks@silvermanthompson.com

(410) 385-9101

 

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What is the Renters’ Rights and Stabilization Act of 2024?

House Bill 693 made several substantial changes to existing Maryland landlord-tenant law:

Nonpayment of Rent Complaints

The cost for a landlord to file a Failure to Pay Rent Complaint has increased from $8 to $43 per case (plus an additional $10 in Baltimore City), along with the cost of service.

A landlord is not permitted to recover this cost from a tenant unless a court enters a judgment for possession in the landlord’s favor and the lease agreement provides that a surcharge may be assessed against the tenant.

Any deduction for this surcharge, if awarded by the court, may not be recovered from a tenant in an amount that exceeds the amount of the tenant’s security deposit.

 

Security Deposits

A landlord may not charge a security deposit in excess of one (1) month’s rent with very limited exception. This is a change from prior law which permitted a landlord to charge a security deposit of up to two months’ rent. The security deposit may not be forfeited to the landlord for breach of a lease, except in the amount the landlord is actually damaged by a breach, or the amount of a surcharge authorized by law.

 

Maryland Tenants’ Bill of Rights

The Renters Rights and Stabilization Act creates an Office of Tenant and Landlord Affairs to ensure that tenants have access to educational resources to aid in understanding and exercising tenants’ rights under state law, provides tenants with information on how to report a violation of their legal rights, offer tenants information on how to obtain financial counseling, and notify authorities regarding housing discrimination. The Office of Tenant and Landlord Affairs has been tasked with developing a Maryland Tenants’ Bill of Rights.

Landlords must provide tenants with a copy of the most current version of the Maryland Tenants’ Bill of Rights published by the Office of Tenant and Landlord Affairs at lease signing.

 

Tenants’ Right of First Refusal

House Bill 693 amends Section 8-119 of the Real Property Article and mandates the owner of residential rental property to send each tenant a written notice of the tenant’s right to deliver an offer to purchase the property, subject to certain exceptions, prior to listing the residential rental property for sale. The law governing this right of first refusal for residential tenants is detailed and very complex and, if a property owner fails to comply with its obligations, a tenant may file a notice of lis pendens which would interfere with closing on a sale of property.

The majority of the changes imposed by the Renters Rights and Stabilization Act will go into effect on October 1, 2025, and will impact all Maryland landlords and property owners.

 

If you need assistance with understanding recent changes in Maryland landlord-tenant law or issues involving failure to pay rent complaints, security deposits, or rights of first refusal in Baltimore City or the surrounding counties, please do not hesitate to contact us by phone or e-mail:

Avery Barton Strachan, Esq.

astrachan@silvermanthompson.com

(410) 385-9113

 

Kerri L. Smith, Esq.

ksmith@silvermanthompson.com

(410) 385-9106

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When are emotional support and/or service animals allowed in rental housing in Maryland? 

Under Maryland law, landlords are required to allow tenants with disabilities to keep emotional support and/or service dog in the rental unit, with very limited exceptions.  Landlords may be able to inquire and request that documentation be provided by a tenant regarding the need for the requested reasonable accommodation for an emotional support and/or service animal, prior to granting such request.   

 

What is a service animal? 

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Silverman Thompson recently represented a contractor who was hired to renovate a large residential property in Baltimore County. The plaintiff, a subcontractor, filed a lawsuit against the client’s company and the client, individually, alleging that the company and the client individually breached a contract and that our client violated the Maryland Construction Trust Act and the Maryland Prompt Pay Act.  

Silverman Thompson moved to dismiss or in the alternative for summary judgment on all claims.  

Based on the evidence and legal arguments presented in our brief, the Plaintiff voluntarily dropped 3 of his 4 claims against our client, including those claims against the client in his personal capacity and the claims that could have potentially allowed the plaintiff to recover its attorneys’ fees and any enhanced damages. 

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How can you register a rental property in Baltimore City? Effective January 1, 2019, all non-owner-occupied dwelling units, regardless of whether it is a single-family or multi-family dwelling, must be licensed and registered in Baltimore City.

What are the steps to receive a rental license from the Department of Housing and Community Development (DHCD)?

  • The Property must be registered with DHCD.
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How do you remove a squatter in Maryland? When an empty residential unit or vacant buildings become occupied by a person other than an authorized tenant, they are often referred to as a squatter. Squatter law in Maryland does not allow you to remove the unauthorized person without utilizing the legal process.

What is a squatter?

 A squatter is person who has taken physical possession of real property that they do not own, and who has not signed a lease or paid rent for the property. If a person refuses to leave the request of the property owner, they are considered a squatter and may be removed through filing a Complaint for Wrongful Detainer in the District Courts of Maryland.

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