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§ 8-202. Requirements of lease option agreements

West's Annotated Code of MarylandReal PropertyEffective: July 1, 2018

West's Annotated Code of Maryland
Real Property (Refs & Annos)
Title 8. Landlord and Tenant (Refs & Annos)
Subtitle 2. Residential Leases (Refs & Annos)
Effective: July 1, 2018
MD Code, Real Property, § 8-202
§ 8-202. Requirements of lease option agreements
Currentness
Lease option agreement defined
(a) For the purposes of this section, a “lease option agreement” means any clause in a lease agreement or separate document that confers on the tenant some power, either qualified or unqualified, to purchase the landlord's interest in the property.
Statement required in agreement
(b)(1) A lease option agreement to purchase improved residential property, with or without a ground rent:
(i) If executed after July 1, 1971, shall contain the following statement in capital letters: “THIS IS NOT A CONTRACT TO BUY.”; and
(ii) If executed on or after July 1, 2018, shall also contain the following statement in capital letters and in close proximity to the tenant's signature line:
“THIS AGREEMENT IS AN INTEGRAL PART OF YOUR LEASE AND IS GOVERNED BY TITLE 8 OF THE REAL PROPERTY ARTICLE OF THE ANNOTATED CODE OF MARYLAND AND A TENANT OR PROSPECTIVE TENANT SHALL HAVE ALL APPLICABLE RIGHTS AND REMEDIES PROVIDED UNDER THAT TITLE.”.
(2) In addition, the agreement shall contain a clear statement of its purpose and effect with respect to the ultimate purchase of the property which is the subject of the lease option.
Failure to comply with subsection (b)
(c) If a lease option agreement fails to comply with subsection (b) of this section and is otherwise enforceable, the lease, the lease option agreement, or both may be voided at the option of the party that did not draft the lease option agreement.

Credits

Added by Acts 1974, c. 12, § 2, eff. July 1, 1974. Amended by Acts 1999, c. 649, § 1, eff. Oct. 1, 1999; Acts 2018, c. 787, § 1, eff. July 1, 2018.
Formerly Art. 21, § 8-214.
MD Code, Real Property, § 8-202, MD REAL PROP § 8-202
Current through legislation effective through April 9, 2023, from the 2024 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.
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