Topics on this page:

• Distress for Rent
• Procedure
• Order of Levy
• Personal Property Exempt From Levy
• Time and Manner of Seizure
• Removing Goods from the Property Prior to Sale
• Liability for Loss or Destruction of Goods
• Sale of Goods
• Appeals

Distress for Rent

“Distress for rent” is a court procedure where a landlord seeks to seize and sell the tenant's possessions. The proceeds of the sale are used to cover the unpaid rent.  An action for distress can only be brought for unpaid rent. A landlord can file an action of distress if there is either a written lease for a term longer than three months or a tenancy at will or periodic tenancy that has lasted more than three months. As a part of the distress action, a landlord may request that the lease be terminated and/or that they be entitled to repossess the premises.

Read the Law: Md. Code, Real Property, Title 8, Subtitle 3

Procedure

A Petition for Levy in Distress (DC-CV-086) must be filed in the District Court where the leased premises are located. The landlord will file the petition as plaintiff, naming the tenant as the defendant. The landlord must indicate in the petition the amount of rent they are claiming the tenant owes. The petition must be filed under oath or affirmation from the landlord that the information in the petition is true and correct.

Read the Law: Md. Code, Real Property §§ 8-302 & 8-303

After the landlord files the form, the court will set the date of the hearing. The tenant must be served with notice of the petition and an order to appear at a hearing. The hearing may not be held sooner than 7 days after the tenant was served. If the tenant cannot be served in person, service may be accomplished by certified mail, return receipt requested. If this service is returned or refused by tenant, then service can be made by first class mail. The served order must inform the tenant that:

1. the tenant may appear at the time stated and present evidence on his behalf AND
2. if the defendant fails to appear, all goods on the leased premises not exempted by law may be seized and removed by the sheriff.

Read the Law: Md. Code, Real Property § 8-304 & 8-303
 

The tenant may file an answer to the petition, stating any defense the tenant may have. A hearing on the tenant's answer must be held within 10 days of notifying all parties about the hearing. Notice of the hearing will be sent by regular mail . The court may postpone the hearing if it notifies all parties. At the hearing, the court may determine and decide all issues raised. The court may issue an order authorizing sale of the goods and may make any other order in connection with the tenant’s goods as required.
If the tenant does not file an answer to the petition within 7 days of a levy having been made, the court may issue an order for sale of the tenant’s goods.

Read the Law: Md. Code, Real Property § 8-314

For the landlord to prevail at the hearing,  the court must find that there is a reasonable probability that the landlord’s allegations are correct.

Read the Law: Md. Code, Real Property § 8-305
 
 

Order of Levy

If court determines there is reasonable probability of the landlord’s claims in the petition, the court will promptly issue an order to seize (levy) the tenant’s non-exempt personal property on the premises (see below for personal property that is exempt).  A copy of the order of levy must be served on each tenant on the leased premises. If no tenant can be found on the premises, the order must be posted in a prominent place on the interior of the premises.

After the court issues its order, an officer of the court will make an inventory of all non-exempt items on the premises. A copy of the inventory must be provided to the tenant or, if no tenant is found, posted inside the premises. The inventory must then be provided to the court.
 

Read the Law: Md. Code, Real Property § 8-305

Personal Property Exempt From Levy

Levy must be made solely on goods on the leased premises, regardless of whether the goods are the property of the tenant or of some other person . Tenant’s personal property not on the premises are exempt. If the term of a lease is for more than 15 years, the goods of any subtenant or of any third party on the leased premises are not subject to levy .  

The following specific items are also exempt from levy:

• Hand-powered and operated tools used by the tenant in their occupation
• law books of an attorney
• Hand-operated instruments of a physician
• Medical books of a physician
• Files and professional records of a lawyer or physician
• A third party's recorded security interest in goods which are in tenant's possession

Read the Law: Md. Code, Real Property §§ 8-306 & 8-307

Time and Manner of Seizure

The levy may be made at any time of the day or night. However, without a court order, no forcible entry may be made into residential premises that are currently occupied. 

If any of the goods seized belong to a third party who is not a tenant, the third party may petition the court to ask that his possessions be excluded. The petition must be filed within 7 days of the levy.

A tenant whose goods have been seized but not yet sold may petition the court for the return of the goods, but the court may require the tenant to file a bond before the goods are returned.

Read the Law: Md. Code, Real Property §§ 8-309, 8-311, 8-316, 8-317

Removing Goods from the Property Prior to Sale

If a landlord can show that there is a need to protect the levied goods before sale, the landlord may petition the court to have the levied goods removed from the leased premises to a place approved by the court until the sale. The court may require a bond from the plaintiff to do this. The expense of removal of any goods from the leased premises to any other place for storage pending sale must be included as a part of the costs of lawsuit. 

Read the Law: Md. Code, Real Property §§ 8-310 & 8-313

Liability for Loss or Destruction of Goods

The risk of loss or destruction of the levied goods is on the owner or the tenant of the leased premises, regardless of whether the goods were removed from the premises by the officer who made the levy. However, the officer is responsible to the owner for willful damage to the goods. An officer does not incur liability for removal of goods that are affixed to the property and the officer may require the landlord to obtain an bond to protect the officer from any claim for damage or injury caused by the officer's removal for sale of goods affixed to the property. 

Read the Law: Md. Code, Real Property §§ 8-312 & 8-313

Sale of Goods

The date of the sale is in the discretion of the court but must be held as soon as feasible.
The notice of sale must be advertised in a newspaper published at least weekly and having general circulation in the area. Notice of the sale must be published at least 1 time, and more if ordered by the court. If no newspaper meets these requirements, the notice may be posted on the door of the courthouse.

The notice of sale should:

• contain the time and location of the sale; and ,
• be published or posted at least 7 days in advance of the date of the sale. 

The sale must be held within 28 days after notice of the sale.

The sale must be in the form of a public auction. An officer of the court may remove the goods from the leased premises to some suitable place for auction or hold the sale on the leased premises. Cost of the removal of goods for sale are included as costs of the sale.

Only enough of the tenant's goods to satisfy the claim for rent due and to pay all costs may be sold. The goods of the tenant must be sold first and, in their entirety, if necessary, to satisfy the rent claim and all costs before any goods of others are sold. The sale of goods of others must be made only to the extent necessary to satisfy the rent claim and all costs. The third party whose goods were sold has a right of action against the tenant for any loss sustained by the third party because of the levy and sale of the third party's goods.
 

Read the Law: Md. Code, Real Property §§ 8-318, 8-319, 8-320, 8-323

All unsold goods, as well as any surplus money, must be returned to the tenant or paid as provided by order of the court.

Read the Law: Md. Code, Real Property § 8-320

After all court costs and other expenses have been paid, if the amount of money received from the distress sale is not enough to pay the landlord's claim, the landlord may petition the court for a deficiency money judgment against the tenant.

Read the Law: Md. Code, Real Property § 8-325

Appeals

Either party may appeal the final order or judgment to the circuit court of the county. The appeal must be filed within 14 days from the date of the order or judgment.

The appeal will be a new trial (called “de novo”), Each party has the right to a jury trial, if requested, in accordance with the rules of the appellate court.

NOTE: An appeal does not delay or prevent another distress for rent action for rent that becomes due after the original trial, Nor does it delay the execution of a judgment or order from the original trial. However, the court may order a suspension of all further proceedings or the execution of any judgment if the tenant files an appeal bond approved by the court.
 

Read the Law: Md. Code, Real Property § 8-332