Real Property Ownership, Transfer, and Title
Estates and forms of ownership
Fee simple absolute is the most complete estate; lesser estates include life estates and leaseholds, including Maryland's ground-rent leasehold. Co-ownership: tenancy in common (no survivorship, unequal shares permitted), joint tenancy (requires the unities and express survivorship language), and tenancy by the entirety (married couples only; neither spouse may convey alone).
Ground rents - a Maryland specialty
The owner of improvements pays annual ground rent to the owner of the land; the leasehold tenant may redeem the ground rent. Ground rents must be registered with the State Department of Assessments and Taxation - an unregistered ground rent is extinguished by law. Holders must notify the leasehold tenant of a change in ownership or collection agent; failure voids the rent. Ground rent appears on the tax bill and is not a mortgage or HOA fee.
Deeds and title
General warranty deed (broadest covenants), special warranty, bargain and sale (Maryland statutory form), and quitclaim (no covenants). Title passes on delivery and acceptance of a valid deed with a proper legal description and signatures; recordation gives constructive notice and protects against later purchasers. A purchaser for value without notice who records first is protected.
Encumbrances
Liens, easements, covenants and restrictions, and encroachments run with the land, appear in the title search, and may be exceptions to a title policy. Lender's title insurance protects the lender; owner's title insurance protects the buyer.
Rule of thumb for title questions: identify (1) the estate, (2) the deed type, (3) the encumbrances, and (4) whether the instrument was recorded.