Ch. 8

Question 1

First-Time Homebuyers

Answer 1

Defined in the law as “an individual who has never owned in the State residential real property that has been the individuals’s principal residence.” A MD first-time homebuyer who is purchasing a primary residence will have the state transfer taxes waived.

Question 2

Homestead Tax Credit Program

Answer 2

A program that is designed to protect owner-occupied residence assessments from the effects of rapid inflation.

Question 3

Mechanics’ Liens

Answer 3

Work on MD real estate that improves a property by 15%.of its previous value qualifies for a mechanic’s lien. Contractors or suppliers have six months after completion of such work to record a notice of their lien.

Question 4

Statutory Period of Redemption

Answer 4

Tax delinquent properties sold at a tax sale are not conveyed immediately to the buyer. The defaulted owner will be given a six-month statutory period of redemption.

Question 5

Triennial Assessment

Answer 5

The procedure for assessing property in MD, the triennial assessment, is based on a 3-year cycle.