Bill > HB790

This bill amends Maryland law to alter the exemption from the State transfer tax for instruments of writing, which are legal documents like deeds, that transfer improved residential real property to certain first-time home buyers. The key changes involve redefining who qualifies for this exemption and how they must prove their eligibility. Previously, the law specified a reduced transfer tax rate of 0.25% paid entirely by the seller for qualifying first-time buyers, but this bill removes that specific rate and instead states that such transfers are "not subject to the transfer tax," implying a full exemption. The definition of a "first-time Maryland home buyer" remains an individual who has never owned residential real property in the state as their principal residence. The bill also clarifies that if multiple people are buying a property, all buyers must be first-time home buyers, or if one is not, they must be a co-maker or guarantor of a purchase money mortgage or deed of trust (a loan specifically for buying the property) and will not live in the home as their primary residence. To qualify for this exemption, the buyer or their agent must provide a sworn statement confirming their first-time buyer status and intent to occupy the property as their principal residence, or if they are a co-maker or guarantor, that they will not occupy it as their principal residence. The bill also requires agents making these statements to attest that they have diligently investigated the facts and that the information is true to the best of their knowledge. These changes are set to take effect on July 1, 2026.

Budget and Finance

https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/HB0790?ys=2026RS