The General Assembly of Maryland is considering a bill that would create legal statutes against real property fraud, including the sale, attempted acquisition or possession of real estate under false pretenses.
Maryland House Bill 202, currently under review by the house judicial committee, was introduced on Jan. 8 and is sponsored by Delegate Ryan Nawrocki (R-7A) of Baltimore County.
If enacted into law, the bill would repeal and re-enact, with amendments, Section 8-601 of the Annotated Code of Maryland to prohibit the intentional fraudulent sale, conveyance, or lease or attempted sale, conveyance, or lease of real property by a person who does not own the real property.
The bill would also prohibit the acquisition, sale, or conveyance or the attempted acquisition, sale, or conveyance of real property by deception, intimidation, threat, or undue influence and prohibit a person from possessing or claiming a right to possess residential real property the person does not lawfully possess or own, with the intent to defraud another.
Additionally, the bill would add sections 8–906 and 8–907, setting laws defining and forbidding specific forms of real property fraud.
“A person, with intent to defraud another, may not claim to sell or convey or attempt to sell or convey real property that the grantor does not own; claim to sell or convey or attempt to sell or convey real property that the grantor lacks sufficient authority to transfer; claim to lease or attempt to lease real property that belongs to another; obtain or attempt to obtain, or sell or convey, or attempt to sell or convey the real property of another through the execution of a deed by the rightful owner of the property by deception, intimidation, threat, or undue influence,” the bill read.
The bill also outlined statutes against the creation of counterfeit deeds and leases, as well as the knowing possession of such.
Penalties for the violation of these new and amended statutes include misdemeanor fines and possible jail time.
“For a first violation, imprisonment not exceeding 90 days or a fine not exceeding $500 or both. For a second violation occurring within two years after the first violation, imprisonment not exceeding six months or a fine not exceeding $1,000 or both; and for each subsequent violation occurring within two years after the preceding violation, imprisonment not exceeding one year or a fine not exceeding $2,500 or both,” the bill read.
If passed and signed into law, the statutes outlined in HB202 would go into effect Oct. 1.