Eminent Domain - Just Compensation - Fees and Costs

EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*sb0451*

SENATE BILL 451
N1 6lr2518
SB 657/25 – JPR
By: Senator Ready
Introduced and read first time: February 2, 2026
Assigned to: Judicial Proceedings

A BILL ENTITLED

AN ACT concerning 1

Eminent Domain – Just Compensation – Fees and Costs 2

FOR the purpose of establishing that damages to be awarded for the taking of land in a 3
condemnation proceeding include, in addition to the fair market value of the land 4
taken, any legal, expert, or other fees or costs of the action incurred by a defendant; 5
and generally relating to eminent domain. 6

BY repealing and reenacting, with amendments, 7
Article – Real Property 8
Section 12–104 9
Annotated Code of Maryland 10
(2023 Replacement Volume and 2025 Supplement) 11

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 12
That the Laws of Maryland read as follows: 13

Article – Real Property 14

12–104. 15

(a) The damages to be awarded for the taking of land [is its] ARE: 16

(1) THE fair market value OF THE LAND; AND 17

(2) ANY LEGAL , EXPERT, OR OTHER FEES OR COS TS OF THE 18
CONDEMNATION PROCEEDING INCURRED BY THE DEFENDANT. 19

(b) The damages to be awarded where land, or any part of it, is taken is the fair 20
market value of the part taken, but not less than the actual value of the part taken plus 21
any severance or resulting damages to the remaining land by reason of the taking and of 22
2 SENATE BILL 451

future use by the plaintiff of the part taken. The severance or resulting damages shall be 1
diminished to the extent of the value of the special (particular) benefits to the remainder 2
arising from the plaintiff’s future use of the part taken. 3

(c) For the purpose of determining the extent of the taking and the valuation of 4
the tenant’s interest in a condemnation proceeding, no improvement or installation which 5
otherwise would be deemed part of the land shall be deemed personal property so as to be 6
excluded from the taking solely because of the private right of a tenant, as against the 7
owner of any other interest in the land sought to be condemned, to remove the improvement 8
or installation, unless the tenant exercises his right to remove it prior to the date when his 9
answer is due, or states in his answer his election to exercise this right. 10

(d) The damages to be awarded for the taking of a structure, such as a church or 11
place of religious worship, held in fee simple, or under a lease renewable forever, by or for 12
the benefit of a religious body and regularly used by the religious body, are the cost of 13
reproducing or replacing the improvements, adjusted for physical and functional 14
depreciation, to which shall be added the fair market value of the land. 15

(e) (1) The damages to be awarded for the taking of all land owned and 16
designated by a public body as park land, open space, or recreation area is the fair market 17
value as of the valuation date, of other land substantially similar in size and character and 18
of comparable quality for park, open space, or recreational purposes for the community 19
which made use of the land to be taken. No damages may be awarded unless other land is 20
acquired for park, open space, or recreational purposes. No awarded damages may be less 21
than the fair market value of the land to be taken. 22

(2) The damages to be awarded for the taking of part of the park land, open 23
space, or recreation area is the fair market value of the part taken, but not less than the 24
actual value of the replacement land as defined in paragraph (1) of this subsection plus any 25
severance or resulting damages to the re maining land by reason of the taking and of the 26
future use by the plaintiff of the part taken. The severance or resulting damages are to be 27
diminished to the extent of the value of the special (particular) benefits to the remainder 28
arising from the plaintiff’s future use of the land taken. 29

(3) Where the land, or any part of it, taken pursuant to this subsection 30
contains improvements, the damages to be awarded, in addition to that provided for in 31
paragraphs (1) and (2) of this subsection, shall include th e reasonable cost as of the 32
valuation date of providing new improvements of substantially the same size, comparable 33
character, and for the same purpose as those taken. 34

(f) The damages to be awarded for the taking of land or an interest in land over 35
which an easement in gross or other right to restrict its use has been granted pursuant to 36
§ 2–504 of the Agriculture Article shall be as provided for in this subsection and § 2–515 of 37
the Agriculture Article: 38

(1) The damages to be awarded for the taking of an entire tract is its fair 39
market value after deducting the lesser of (a) the value of the easement granted, or (b) the 40
SENATE BILL 451 3

excess of the aggregate amount of the property taxes that would have been due on the 1
property if the easement had not been granted abov e the aggregate amount of property 2
taxes actually paid on the property since the easement was granted. 3

(2) The damages to be awarded where part of a tract of land is taken is the 4
fair market value of the part taken less the deduction computed as described in paragraph 5
(1) of this subsection, but not less than the actual value of the part taken less the deduction 6
computed as described in paragraph (1) of this subsection, plus any severance or resulting 7
damages to the remaining land by reason of the taking and of future use by the plaintiff of 8
the part taken. 9

(g) If any easement in gross or other right to restrict use of land or any interest 10
in land has been donated to the Maryland Historical Trust or the Maryland Environmental 11
Trust, damages shall be awa rded in any condemnation proceedings under this title to the 12
fee owner and leasehold owner, as their interests may appear, and shall be the fair market 13
value of the land or interest in it, computed as though the easement or other right did not 14
exist. 15

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 16
October 1, 2026. 17