Maryland Real Property Code – Statutory Summaries and Statutory Analysis

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).