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Unannotated Code of Maryland (Last Updated: May 16, 2014) |
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REAL PROPERTY |
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TITLE 8. LANDLORD AND TENANT |
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SUBTITLE 2. RESIDENTIAL LEASES |
§ 8-202. Lease option agreements
Latest version.
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(a) "Lease option agreement" defined. -- For the purposes of this section, a "lease option agreement" means any clause in a lease agreement or separate document that confers on the tenant some power, either qualified or unqualified, to purchase the landlord's interest in the property.
(b) Required statement in agreement. --
(1) A lease option agreement to purchase improved residential property, with or without a ground rent, executed after July 1, 1971 shall contain a statement in capital letters: THIS IS NOT A CONTRACT TO BUY.
(2) In addition, the agreement shall contain a clear statement of its purpose and effect with respect to the ultimate purchase of the property which is the subject of the lease option.
(c) Failure to comply. -- If a lease option agreement fails to comply with subsection (b) of this section and is otherwise enforceable, the lease, the lease option agreement, or both may be voided at the option of the party that did not draft the lease option agreement.