Effective October 1, 1997 the existing cap on damages, in Baltimore City, equal to a maximum of two months’ rent for a residential tenant’s failure to take possession or for termination of a lease, is repealed.
Specifically, House Bill 1144 repealed Section 8-212 of the Real Property Article.
The repealed section provided a protection for tenants in Baltimore City that was not available in other Maryland jurisdictions. That protection of limiting a residential tenant’s damages to two months’ rent was perceived by many to be unfair to landlords.
Additionally, the Bill repealed the prohibition of certain liquidated damage clauses in residential leases. Liquidated damage provisions set the dollar amount of damages for certain breaches at the time of lease signing.
