Disclaimer: This article provides general information and does not constitute legal advice. Consult a qualified attorney to address your specific situation.
Detailed Answer
When a lender, title company or closing agent in Maryland verifies all individuals or entities with an interest in real property, they must confirm each party’s identity, legal status and the nature of their interest. Under Md. Code, Real Property §3-104, “person” includes individuals, corporations, partnerships, trusts and other entities (https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=rp§ion=3-104). To complete verification, gather the following:
- Natural Persons: Obtain full legal name, date of birth, Social Security Number (or taxpayer ID), and current residence. Request a government-issued, photo-bearing identification (e.g., MD driver’s license or U.S. passport). Confirm marital status and spouse’s name to address potential homestead or spousal rights.
- Corporations and Limited Liability Companies: Secure certified Articles of Incorporation or Organization and a Certificate of Good Standing from the Maryland Department of Assessments and Taxation (SDAT). Obtain a corporate resolution or LLC operating agreement authorizing the specific real estate transaction.
- Partnerships: Request a certified partnership agreement and any recorded Certificate of Partnership. Ensure the agreement delegates authority for real estate conveyances.
- Trusts: Collect the Trust Agreement and a Trustee Certification under Md. Code, Estates & Trusts §§14.5-201 et seq. The certificate must identify trustees, beneficiaries and confirm the trust’s power to hold and convey real estate.
Next, perform a chain-of-title search at the Clerk of the Circuit Court for the county where the property lies. Review recorded deeds, mortgages, liens, easements and judgments to identify all persons with recorded interests. Maryland requires that most deeds be recorded to be valid against third parties (Md. Code, Real Prop. §3-302: https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=rp§ion=3-302).
Finally, obtain any special documents if they apply: powers of attorney (Md. Code, Estates & Trusts §17-101), guardianship or conservatorship orders, death certificates for decedents and court orders appointing personal representatives. Always use originals or certified copies. Ensure notarization and witnesses comply with Md. Code, Real Property §1-302.
Helpful Hints
- Verify each person’s identity with unexpired, photo-bearing ID.
- Check SDAT’s online entity search for corporate and LLC status.
- Use a licensed title company or attorney to perform a full chain-of-title search.
- Confirm spousal or homestead rights under Md. Code, Real Prop. §7-105 before closing.
- Obtain certified copies of trusts, probate and guardianship documents where applicable.
- Ensure all documents are notarized and witnessed according to Maryland statute.