Ground Rent - United States of America

United States of America

The term ground rent is applied in many U.S. states to a kind of tenure created by a grant in fee simple, the grantor reserving to himself and his heirs a certain rent, which is the interest in the money value of the land. These ground rents are real estate and, in cases of intestacy, go to the heir. They are rent services and not rent charges, the statute Quia Emptores never having been in force in Pennsylvania, and are subject to all the incidents of such rents. The grantee of a ground rent may mortgage, sell, or otherwise dispose of the grant as he pleases and while the rent is paid the land cannot be sold or the value of the improvements lost. The person who owns the land can live on it or they can build a home on it that is sold to other people, while they retain ownership of the land and charge the new home owner ground rent.

A ground rent being a freehold estate, created by deed and perpetual in duration, no presumption that it had been released could, at common law, arise from lapse of time. However, by statute (Act of 27 April 1855, s. 7), a presumption of release or extinguishment is created where no payment, claim or demand has been made for the rent, nor any declaration or acknowledgment of its existence made or given by the owner of the premises subject to it, for the period of 21 years. Ground rents were formerly irredeemable after a certain time but the creation of irredeemable ground rents is now forbidden (Pennsylvania Act 7 Assembly, 22 April 1850).

Ground rents are also found in some portions of Maryland, primarily in the Baltimore area. These are typically leases subject to a monthly or annual rent payment. Under Maryland law, if the renter does not pay, the ground owner can go to court and have a lien placed against the house. An emergency bill was presented by Democratic Maryland Governor Martin O'Malley to completely ban new ground rents in Maryland in 2007; the bill was passed by the legislature, though it is being contested in court. Victor Posner began his career in Baltimore in the business of building house shells for Blacks on property retained under ground rents.

Read more about this topic:  Ground Rent

Famous quotes containing the words united states, united, states and/or america:

    “Television is an excellent system when one has nothing to lose, as is the case with a nomadic and rootless country like the United States, but in Europe the affect of television is that of a bulldozer which reduces culture to the lowest possible denominator.”
    —Marc Fumaroli (b. 1932)

    “... when we shall have our amendment to the Constitution of the United States, everyone will think it was always so, just exactly as many young people believe that all the privileges, all the freedom, all the enjoyments which woman now possesses were always hers. They have no idea of how every single inch of ground that she stands upon to-day has been gained by the hard work of some little handful of women of the past.”
    —Susan B. Anthony (1820–1906)

    “If I be false, or swerve a hair from truth,
    When time is old and hath forgot itself,
    When waterdrops have worn the stones of Troy,
    And blind oblivion swallowed cities up,
    And mighty states characterless are grated
    To dusty nothing, yet let memory
    From false to false among false maids in love
    Upbraid my falsehood.”
    —William Shakespeare (1564–1616)

    “Where we come from in America no longer signifies—it’s where we go, and what we do when we get there, that tells us who we are.
    The irony of the role of women in my business, and in so many other places, too, was that while we began by demanding that we be allowed to mimic the ways of men, we wound up knowing we would have to change those ways. Not only because those ways were not like ours, but because they simply did not work.”
    —Anna Quindlen (b. 1952)