Redemption of ground lease.

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    (a)    This section does not apply to a:

        (1)    Home equity line of credit;

        (2)    Loan secured by an indemnity deed of trust; or

        (3)    Commercial loan.

    (b)    Before the settlement of a loan secured by a mortgage or deed of trust on residential real property improved by four or fewer single–family units that is subject to a redeemable ground rent, the settlement agent shall notify the borrower that:

        (1)    The borrower has the right to redeem the ground rent under § 8–804 of this subtitle;

        (2)    The redemption amount is fixed by law but may also be negotiated with the ground lease holder for a different amount;

        (3)    It may be possible to include the amount of the redemption in this loan;

        (4)    For information on redeeming the ground rent, the borrower should contact the ground lease holder; and

        (5)    For information on including the amount of the redemption in this loan, the borrower should contact the lender or credit grantor making this loan.


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