Maryland Real Property Code – Statutory Summaries and Statutory Analysis

This document provides a summary and analysis of Section 8-203 of the Real Property Article of the Maryland Code, including information on maximum security deposit, return of security deposit with interest, and notice requirements for withheld security deposit.

Real Estate Law

TO: Bernie Franks, Director of Paralegals
FROM:
RE: Maryland Real Property Code – Statutory Summaries and Statutory Analysis
DATE: 25th March 2019
Part I: Statutory summaries of Section 8-203 of the Real Property Article of the Maryland Code
A. Section (b) of the statute is related to maximum amount of security deposit required.
Subsection (1) states that a landlord cannot impose security deposit of more than 2 months of
rent per residential unit, without considering the number of tenants. Subsection (2) says that if a
landlord charges amount more than 2 months of rent per residential unit in the form of security
deposit, the occupier might recuperate up to three times the additional amount indicted along
with the reasonable fees of attorney. Subsection (3) states that an action might be taken during
the lease or within 2 years after termination of lease(Findlaw, 2019).
B. Section (e) is related to the return of security deposit to occupant with interest. Subsection (1)
states that after completion of tenancy, the landlord should give back the security deposit within
45 days along with simple interest added in accordance with daily U.S. Treasury yield curve rate
for a year or 1.5% a year. Subsection (2) (i) states that interest could increase at monthly interims
from the day, tenant provides landlord with the security deposit. There is no interest due when
landlord has seized the security deposit for minimum 6 months or for less than a month. The
interest should be payable on security deposits of $50 or more and if landlord does not succeed
in returning any part of security deposit along with interest within 45 days after the end of the
tenancy, tenant can take action for three times the withheld amount along with reasonable
attorney charges (Justia, 2019).

C. Section (g) of the statute is related to the provisions for notice to the tenant regarding withheld
security deposit. Subsection (1) states that in case of amount withheld as security deposit, within
45 days after the end of lease, the landlord should send a list of damages along with additional
cost statement by first-class post to the tenant. Similarly,if landlord fails to be in compliance with
this requirement, he/she losses the right to hold back any part of security deposit for
damages(Davison, 1976).
Part II: Statutory Analysis
A.Taking into consideration, the Md Real Property Code, Brown is entitled to receive a
scheduled list of damages within 45 days after the termination of lease under Section (g) of the
statute. In case of failure on the part of Brokers, unable to send the list of damages along with the
statement of costs actually added, the right of the landlord loses the right to hold back any of the
part of the security deposits for the damages.
B. Under the Md Real Property Code, Brown is entitled to receive $2500 from the security
deposit plus interest and he is also entitled to receive legal fees if Brown takes legal action to
collect the money owed by Brokers under Section (e) (1) of the Statute. As Brokers failed to send
the list of damages within 45 days required under Subsection (g) of the Statute, Brown can take
legal action to receive three times the withheld amount along with reasonable attorney charges.
C. Under the Md Real Property Code, Brown could claim that he is entitled to a return of the full
$3000 damage deposit, without considering any minor damages to the house leased for two
years. In accordance to Subsection (b) (1) of the statute, landlord cannot impose security deposit
of more than 2 months of rent per residential unit and Subsection (2) says that if amount more
than 2 months of rent in the form of security deposit is taken by the landlord, the tenant has the
right to recuperate up to three times the additional amount indicted along with the reasonable

fees of attorney. So, Brown has paid three months of advance i.e. $1000 extra to the Brokers and
can get compensation of three times the extra amount. Secondly, if landlord fails to provide the
list of damages to the tenant within 45 days of termination of lease, he losses the right to hold
back any part of security deposit for damages. So, Brokers do not have the right to hold back any
amount.
D. Brown is absolutely correct that security deposit demanded has been unlawful because
Subsection (b) (1) of the statute states that a landlord cannot impose security deposit of more
than 2 months of rent, without considering the number of tenants. Under Subsection (2) as
Brokers have charged amount of 3 months rent in the form of security deposit, Brown is entitled
to recover up to three times the additional amount indicted along with the reasonable fees of
attorney. Brown can claim against Brokers under Subsection (3) which states that legal action
can be taken any time during the occupancy or within 2 years after the end of lease (Thomson
Reuters, 2016).
References
Davison, S. G. (1976). The Uniform Residential Landlord and Tenant Act and Its Potential
Effects upon Maryland Landlord Tenant Law. University of Baltimore Law Review, 5(2),
247-257.
Findlaw. (2019). Maryland Code, Real Property § 8-203. Retrieved from findlaw.com:
https://codes.findlaw.com/md/real-property/md-code-real-prop-sect-8-203.html
Justia. (2019). Maryland Real Property Section 8-203. Retrieved from justia.com:
https://law.justia.com/codes/maryland/2005/grp/8-203.html

Thomson Reuters. (2016). Maryland Code and Court Rules. Retrieved from govt.westlaw.com:
https://govt.westlaw.com/mdc/Document/N4F7BE881584F11E6A483DFBDA551E575?
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