Recent Maryland Case Updates
Md. holds that even a “passive” owner of a consumer debt may be required to hold a collection agency license, but a judgment in favor of an unlicensed collection agency is not void based merely on lack of licensure. However, aggrieved consumers could proceed with a private cause of action against the unlicensed collection agency.
The Court of Appeals of Maryland determined that, after a foreclosure sale, commercial real estate brokers could not enforce a covenant to pay renewal leasing commissions against the new owner, because the right to renewal commissions were personal obligations of the Original Owner/Landlord, which did not run with the land.
The Court of Appeals of Maryland held that a foreign statutory trust, which merely served as a special purpose vehicle to own a mortgage loan, was not required to obtain a collection agency license prior to pursing foreclosure through its substitute trustees.
Recording of Declaration in land records providing for utility assessments does not create a lien, but merely authorizes the creation of lien upon compliance with Maryland Contract Lien Act.