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HB1566 • 2026

Real Property - Deeds of Trust - Recordation of Assignments

Real Property - Deeds of Trust - Recordation of Assignments

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
Delegate Queen
Last action
2026-03-10
Official status
In the House - Hearing canceled
Effective date
2026-07-01

Plain English Breakdown

Using official source text because the generated explanation was unavailable or could not be confirmed against the official bill text.

Real Property - Deeds of Trust - Recordation of Assignments

Clarifying that the holder of a promissory note, other instrument, or other obligation secured by a recorded deed of trust is entitled to the benefits of the deed of trust notwithstanding any person recorded in the land records as the holder.

What This Bill Does

  • Clarifying that the holder of a promissory note, other instrument, or other obligation secured by a recorded deed of trust is entitled to the benefits of the deed of trust notwithstanding any person recorded in the land records as the holder.

Limits and Unknowns

  • This entry is temporarily using official source text because the generated explanation could not be confirmed against the official bill text during the last sync.

Bill History

  1. 2026-03-10 House

    Hearing canceled

  2. 2026-02-17 House

    Hearing 3/13 at 1:00 p.m.

  3. 2026-02-13 House

    First Reading Economic Matters

  4. Maryland General Assembly

    Text - First - Real Property - Deeds of Trust - Recordation of Assignments

Official Summary Text

Clarifying that the holder of a promissory note, other instrument, or other obligation secured by a recorded deed of trust is entitled to the benefits of the deed of trust notwithstanding any person recorded in the land records as the holder.

Current Bill Text

Read the full stored bill text 
EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*hb1566*

HOUSE BILL 1566
N1 6lr3122
CF 6lr2691
By: Delegate Queen
Introduced and read first time: February 13, 2026
Assigned to: Economic Matters

A BILL ENTITLED

AN ACT concerning 1

Real Property – Deeds of Trust – Recordation of Assignments 2

FOR the purpose of clarifying that the holder of a promissory note, other instrument, or 3
other obligation is entitled to the benefits of a recorded deed of trust notwithstanding 4
any person recorded in the land records as the holder of the promissory note, other 5
instrument, or other obligation; and generally relating to mortgages and deeds of 6
trust. 7

BY repealing and reenacting, with amendments, 8
Article – Real Property 9
Section 7–103 10
Annotated Code of Maryland 11
(2023 Replacement Volume and 2025 Supplement) 12

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 13
That the Laws of Maryland read as follows: 14

Article – Real Property 15

7–103. 16

(a) (1) THIS SUBSECTION DOES NOT APPLY TO A DEED OF TRUST. 17

(2) The title to any promissory note, other instrument, or debt secured by 18
a mortgage, both before and after the maturity of the note, other instrument, or debt, 19
conclusively is presumed to be vested in the person holding the record title to the mortgage. 20
If the mortgage is duly released of record, the promissory note, other instrument, or debt 21
secured by the mortgage, both before and after the maturity of the promissory note, other 22
instrument, or debt, conclusively is presumed to be paid as far as any lien on the property 23
granted by the mortgage is concerned. 24
2 HOUSE BILL 1566

[(b)] (3) After an assignment of a mortgage is recorded, any payment made by 1
the original mortgagor to the assignor is effective to reduce or discharg e the note or debt, 2
unless the mortgagor has received actual notice of the assignment prior to the payment. 3
This provision also applies to a payment by a transferee of the mortgagor’s interest in the 4
mortgaged property except where the assignment of the mo rtgage is of record at the 5
effective date of the transfer of the mortgagor’s interest in the mortgaged property. 6

(B) WHEN A DEED OF TRUST IS RECORDED TO SECURE A PROMISSORY NOTE, 7
OTHER INSTRUMENT, OR OTHER OBLIGATION , THE HOLDER OF THE PR OMISSORY 8
NOTE, OTHER INSTRUMENT , OR OTHER OBLIGATION SECURED BY THE DEED OF 9
TRUST IS ENTITLED TO THE BENEFITS OF THE DEED OF TRUST NOTWITHSTANDING 10
ANY PERSON RECORDED IN THE LAND RECORDS AS THE HOLDER. 11

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 12
1, 2026. 13