Md. Code Regs. 15.15.05.08

Current through Register Vol. 51, No. 22, November 1, 2024

Section 15.15.05.08 - Landowner Repurchase of Easement

A. Order of Two Appraisals at Landowner's Expense. Within 10 days after both the Secretary and the State Treasurer approve the termination request, the landowner shall remit good funds as instructed by the Foundation to pay for the cost of two appraisals to determine the fair market value of the easement land, which appraisals shall be ordered by the Department of General Services. The date of valuation shall be the date that the Foundation Board of Trustees members at large approved the landowner's termination request. If the Department of General Services must also determine the agricultural value of the land as provided by §C(1) of this regulation, it shall order two appraisals of the agricultural value of the land at the same time it orders the two appraisals to determine the fair market value of the easement land. The landowner shall pay the costs to acquire all such appraisals.

B. Determining Fair Market Value. After review of the two appraisals of the subject property, the Department of General Services shall determine the land's fair market value and promptly notify the Foundation in writing of its determination. For purposes of this regulation, the fair market value of land is the price as of the valuation date for the highest and best use of the property which a vendor, willing but not obligated to sell, would accept for the property, and which a purchaser, willing but not obligated to buy, would pay for the property if it were not subject to an agricultural land preservation easement.

C. Determining Agricultural Value.

(1) Based on the Ordered Appraisals. If, at the time the Foundation acquired the easement, the land's agricultural value was determined by an appraisal, the Department of General Services shall determine the land's agricultural value and promptly notify the Foundation of its determination. For purposes of this regulation, the agricultural value of land, as determined by an appraisal, is the price as of the valuation date which a vendor, willing but not obligated to sell, would accept for the property, and which a purchaser, willing but not obligated to buy, would pay for the property as a farm unit, to be used for agricultural purposes.

(2) Based on the Agricultural Formula. If, at the time the Foundation acquired the easement, the land's agricultural value was determined by the agricultural formula, the Foundation shall use the formula in effect at the time for determining the land's agricultural value.

D. The Foundation shall notify the landowner of the land's approved fair market value and agricultural value after:

(1) The Department of General Services has notified the Foundation of these approved values as provided in §§B and C(l) of this regulation; and

(2) If applicable, the Foundation determines the land's agricultural value as provided in §C(2) of this regulation.

E. Election to Repurchase. As required by Agriculture Article, § 2-514(i)(4)(ii), Annotated Code of Maryland, the landowner has no more than 30 days following the notification set forth in §D of this regulation to elect to repurchase the easement by paying to the Foundation the difference between the fair market value and the agricultural value of the subject land. Such election notice must be received by the Foundation, in writing, within 30 days following the date of the notification set forth in §D of this regulation.

F. Repurchase. The landowner has no more than 180 days following the notification set forth in §D of this regulation to repurchase the easement by paying to the Foundation the difference between the fair market value and the agricultural value of the subject land, subject to Board of Public Works approval, as set forth in State Finance and Procurement Article, § 10-301 et seq., Annotated Code of Maryland.

G. Upon receipt of payment of all required funds as specified in §§A and F of this regulation, the Foundation shall prepare, execute, and deliver to the landowner for recording a Termination of Easement.

Md. Code Regs. 15.15.05.08

Regulation .08 adopted effective 45:20 Md. R. 919, eff. 10/8/2018