Landlords Beware: Tenant Claims to Possession May Impact Ability to Evict

In Maryland landlord-tenant litigation, a dispute over who owns a rental property can raise issues that go beyond whether rent is owed, whether a tenant is holding over, or whether a tenant may be evicted. When a tenant or other person in possession raises a challenge regarding ownership of the property, the court may be required to determine whether the dispute over title is relevant to the pending possession proceeding before addressing the failure to pay rent or holding over claim.

How Equitable Title Can Complicate Eviction Proceedings

This question typically arises in situations that involve a tenant that has entered into a lease with the option to purchase the property, or a tenant that has entered a simple agreement to purchase the property. Many times, when a tenant enters such an agreement, the tenant thereby obtains “equitable title” to that property. Equitable title is not the same thing as legal title – which is still held by the landlord or current owner of the property. By the tenant obtaining equitable title to the property, however, the process for the landlord or owner to evict that tenant in failure to pay rent and holding-over actions becomes more challenging — because in many such cases the court must first determine the validity of the title claims before it addresses the other claims.

How Maryland Law Addresses Ownership Disputes in Possession Cases

The governing Maryland statute provides a procedural mechanism for addressing an ownership issue that is material to a pending property possession case, but this does not mean that every disagreement over ownership must be litigated before the court can resolve a landlord-tenant dispute. The statute requires that a claimant appear before the court and declare under oath that the claimant asserts title to the property. The claimant must also provide a bond. Significantly, the statute also provides that if the title claim is not commenced in the circuit court within ten days of the claimant’s first appearance in the District Court, the District Court must proceed to enter judgment for possession and costs and issue its warrant.

Before relying on this statute, it’s important to identify the legal basis of the underlying proceeding and determine whether the alleged title dispute falls within the statutory language. The court must determine whether title is relevant and is central to the procedure. If the statutory conditions are met, the court must forbear from entering judgment for possession.

The Importance of Maintaining Property Ownership Records

This statute highlights the importance of maintaining reliable documentation concerning ownership and the legal right to possession. Relevant records may include deeds, lease agreements, estate documents, and records of any transfer of ownership.