What’s New: Major Real Estate Legal Changes 2025

What’s New: Major Legal Changes 2025

1. New Tenants’ Bill of Rights Must Be Included With Leases

Starting July 1, 2025, under the Renters’ Rights & Stabilization Act of 2024, all new residential leases (and lease renewals) in Maryland must include the state’s official Maryland Tenants’ Bill of Rights attachment.
Although this change took effect in mid-year, it continues to be extremely relevant for Fall 2025 (and beyond) because any lease executed now must comply.
Why it matters:

• It ensures that tenants are explicitly informed of their rights and protections under Maryland law. 
• For landlords, property managers and real‐estate professionals, it means updating lease templates, practices and training.
• For renters, it provides an enforceable baseline for disclosures from the landlord (even if the law doesn’t necessarily create brand-new rights). 

2. Accessory Dwelling Units (ADUs) / “Small Houses” Act

The SB 891/HB 1466 – Land Use & Real Property: Accessory Dwelling Units passed and takes effect October 1, 2025. According to commentary: local governments (including those in Baltimore City or Baltimore County) must adopt ordinances by October 1, 2026 allowing ADUs on single-family detached lots.
What this means in practical terms:

• Property owners in many jurisdictions will soon have a legal pathway to build a secondary dwelling unit on their lot (think: “mother-in-law suite”, carriage house, or small accessory house) under a defined size (often up to ~75% of the primary unit’s size). 
• Local zoning laws will need to be updated; timing and details will vary by county/municipality.
• For homeowners in the Baltimore area, this creates a potential new real-estate opportunity (rental income, added housing supply) — but also means attention to local implementation (permitting, zoning, neighborhood impact) will be important.

3. Real Estate Licensee Continuing Education (CE) Requirements Changing

Effective October 1, 2025, real-estate professionals in Maryland will face updated continuing education requirements under HB 0972 (among others).
Key changes:

• Fair Housing CE hours increase from 1.5 to 2.0 hours. 
• The “BRAD” (Brokerage Relationship and Disclosure) and “BRAD-SD” courses will be merged into one unified course (in many cases) for licensees. 
• Brokers/managers have new or adjusted supervision/training hour requirements.
  For homeowners and consumers, this matters because it means the agents you work with must meet these updated standards, and you may wish to verify compliance.

4. Wrongful Detainer / Squatter Possession Expedited Process

The law SB 46 – Wrongful Detainer: Time of Hearing and Service of Process passed and is effective October 1, 2025. 

• It creates an expedited process for dealing with fraudulent possession of residential properties (i.e., when someone claims possession without legal right).
• Courts are required to schedule hearings to return possession to the rightful owner within 10 days of filing the complaint.
  For property owners in Baltimore, especially those with rental properties or vacant homes, this represents a meaningful change in their ability to act when someone wrongfully occupies their property.

5. Other Noteworthy Legal Changes Affecting Property & Real-Estate

Here are several additional items that may impact you:

• The HB 0872/SB 0606 – Tenant Right‑of‑First‑Refusal Clarification: Effective October 1, 2025, it clarifies that liability for failing to comply with tenant right-of-first-refusal requirements is attached solely to the property owner, and not to the property itself. 
• The HB 0796/SB 0566 – Foreclosure Filing Fee Increase: Also effective October 1, 2025, this raises the filing fee for orders to docket or complaints to foreclose on residential mortgages or deeds of trust (from $300 to $450).
• Changes to the definition and maintenance of “land records” under HB 0347: Defines “land record” as any document recorded by a clerk of the circuit court relating to property; takes effect October 1, 2025. 
• For community associations (condominiums, HOAs etc): The statewide reserve-study law (originally under HB 107) continues to have evolving issues around funding and timing of reserve accumulation—relevant if you own in a condominium or townhouse association. 

What This Means for Baltimore Area Residents (“So What?”)

Whether you’re a homeowner, renter, landlord, or real-estate professional in the Baltimore region (including Baltimore City, Baltimore County, and nearby jurisdictions), here’s how to interpret and act on these changes.

For Renters / Tenants

• Check your lease: From Fall 2025 onward, your new lease or renewal should include the updated Tenants’ Bill of Rights. If it doesn’t, ask your landlord.
• Late fees and penalties: While not all changes are specific to Baltimore City alone, you should be aware of evolving laws around late-rent penalties and tenant protections (e.g., notices of repossession). For example, one bill sets a cap on late-rent penalties to 5 % of unpaid rent rather than total rent due. 
• Right of first refusal and other landlord/tenant protections: If you’re in a rental unit that might be sold or foreclosed, stay informed of how the laws regarding tenant rights may apply (e.g., owner must provide certain notices or follow procedures).

Homeowners & Potential Homebuyers

• Accessory Dwelling Unit (ADU) opportunities: If you own a single-family detached property, the new law opens up possibilities to build an ADU (or modify your lot) in upcoming months/years. But check your local zoning and ordinances in your exact jurisdiction (Baltimore City vs Baltimore County differ).
• HOAs and Condominiums: If you live in a common-ownership community (condo, townhouse HOA), keep an eye on your association’s reserve-study funding, budgeting for deferred maintenance, and how statewide-laws may require greater transparency and funding plans.
• Foreclosure and property owner rights: If you’re an investor or owner of rental properties (or vacant properties), the expedited wrongful detainer law may reduce risk and accelerate your ability to reclaim possession when someone wrongfully holds over.
• Real-estate agent representation: As a buyer, you should clarify your agency relationship (see next section) and ensure you and your agent follow the new CE/training standards.
• Land record/documentation awareness: Because the definition of “land record” has been expanded, when buying or selling property ensure due diligence on all recorded documents, liens, trusts, etc.

For Landlords & Property Managers

• Lease format compliance: Make sure new leases/renewals include the Tenants’ Bill of Rights, and that your processes reflect any updated landlord/tenant law changes (notice requirements, warrant of restitution procedures).
• Eviction/possession processes: With the wrongful detainer law, your timeline to regain possession in unlawful hold-over/squatter cases may be shorter—so review your eviction strategy and legal counsel.
• Build-out and zoning options: If you own property where an ADU might make sense (either as a rental unit or in-law suite), begin reviewing zoning, permitting, homeowner association restrictions and budget implications.
• Training and licensing for your agents/staff: If you manage listings or rental properties via licensed professionals, ensure they’re aware of the new CE requirements and agency/training obligations (e.g., Fair Housing increments, BRAD course changes).
• Community associations and HOA obligations: If you’re a landlord in a building with a condominium or HOA, realize that those associations may be subject to additional financial/reserve obligations, which may affect budgeting, assessments and your rental cost basis.

Practical Checklist for Fall 2025

Here are actionable steps you can take now:

• renting: Review your lease renewal or new lease for compliance with the Tenants’ Bill of Rights. Ask for a copy if one wasn’t provided.
• buying a home: Ask your agent whether your jurisdiction has adopted ADU ordinances yet (or what the timeline is). Ask the HOA/condo association for their most recent reserve study.
• landlord: Update your lease templates, incorporate any required disclosures, review your eviction/possession strategy given the new wrongful detainer law. Make sure your staff/contractor/agents are educated on Fair Housing and new CE requirements.
• real-estate professional: Make sure your CE hours reflect the changes (Fair Housing now 2 hours; course structure changes) and that your buyer/seller agency agreements are compliant with the changes in how Maryland treats touring agreements and disclosures. 
• condo or HOA community: Ask your board or manager for the latest reserve study, funding plan, and check whether the association is budgeting appropriately. See if upcoming changes (e.g., October 1, 2025 changes) will affect your assessments or fees.

Final Thoughts

Fall 2025 is a pivotal period for real estate law in Maryland and by extension for the Baltimore area. While a lot of the new laws took effect earlier in the year (July 1) or took effect October 1, the implementation and downstream effects will play out over the coming months. Staying informed, reviewing your documents, and working with qualified professionals (agents, attorneys, property managers) will help ensure you’re aware of rights, obligations, and opportunities.