Resources · October 2026

Maryland closing deadlines for title and settlement companies

Federal TRID sets the disclosure dates. Maryland adds rules on when the lender funds, who can hold trust money, where it’s deposited, and what a deed needs before the clerk will record it. Here is what the Maryland Code and the Maryland Insurance Administration say, with the source for each rule.

Lender funding on purchase money loans

On or before the day of settlement. In a consumer loan secured by a purchase money mortgage or deed of trust, the lender must disburse the loan proceeds to the settlement agent on or before the day of settlement (Real Property §7-109(b)(1)). Here, settlement means signing and delivering the loan or security documents.
Second liens. For a consumer loan secured by a second mortgage or deed of trust, the settlement agent can require the lender to fund the same way (§7-109(b)(2)).
Acceptable funds. Cash, wired funds, a certified check, a check from a government entity, a teller’s check or a cashier’s check, plus some lender checks described in §7-109(d) (§7-109(c)).
Penalty. If the loan isn’t disbursed as §7-109(c) provides, the lender can’t charge interest for the first 30 days after closing (§7-109(e)).

We didn’t find a Maryland statute that sets a deadline for the settlement agent to record or disburse after settlement, like Virginia’s two-business-day rule. Follow your lender’s and underwriter’s instructions on timing.

Licensing and who can hold trust money

The Maryland Insurance Administration licenses title insurance producers. Only a licensed title insurance producer can control trust money, except money held by a law firm or a title insurer (Insurance §10-121(b)). Each controlling person and trust money controller of a business entity must also be licensed (MIA licensing page).

Bonds. Individuals file a $150,000 surety bond or letter of credit. Business entities file a $150,000 surety bond or letter of credit and a $150,000 blanket fidelity bond, unless the Commissioner approves a lower amount (§10-121(e); MIA licensing page).
Renewal. Individual licenses renew every two years and expire on the last day of the producer’s birth month. Business entity licenses expire two years after they’re issued (MIA licensing page).
Split settlements. In Bulletin 26-7 (March 16, 2026), the MIA said the Insurance Article doesn’t prohibit buyer and seller from using separate providers for parts of a settlement, but it will look hard at duplicate services and charges.

Trust money and MAHT accounts

Trust money must be kept in a financial institution in Maryland until it’s disbursed. An out-of-state institution needs the approval of the Commissioner of Financial Regulation (Insurance §22-105(d)).
Trust money that would earn $50 or less in a separate account, or cost more to administer than it would earn, is pooled. The bank pays the interest on pooled accounts to the Maryland Affordable Housing Trust (MAHT) at least quarterly (§22-105(b) and (c)).
Title producers with a MAHT account file an annual report by March 31 for the prior calendar year (COMAR 31.16.03.06, per DHCD’s MAHT FAQ).
You don’t have to hold an earnest money deposit. If you agree to, it’s trust money (MIA Bulletin 18-04).

Recording and e-recording

Deeds are recorded with the clerk of the circuit court (Tax-General §10-912 refers to recording there). Before the clerk will record, Real Property §3-104 requires, among other things:

The collecting agent’s certificate that taxes and charges on the property are paid (§3-104(a) and (b))
A complete intake sheet on the Administrative Office of the Courts form (§3-104(g))
A copy of the instrument and any survey for the Department of Assessments and Taxation (§3-104(a))
Each signer’s name typed or printed by the signature (§3-104(d))
On a deed, a certification that a Maryland attorney or a named party prepared it (§3-104(f))

E-recorded documents must come through a vendor approved by the Administrative Office of the Courts (Maryland Judiciary e-recording procedures, under Real Property §3-703).

Nonresident seller withholding

When a nonresident individual or entity sells Maryland real property, the deed can’t be recorded until the withholding tax is paid to the clerk or SDAT (Tax-General §10-912). It doesn’t apply if each seller certifies under penalty of perjury that they are a Maryland resident or that the property is their principal residence, or if the seller has a Comptroller certificate that no tax or a reduced amount is due. Get the certification or the payment figured before closing day.

Who pays the closing taxes

When a first-time Maryland homebuyer buys improved residential property as a principal residence, the state transfer tax drops to 0.25% and the seller pays all of it. The buyer needs to give a sworn statement (Tax-Property §13-203). For county transfer and recordation taxes, use our closing tax calculator.

Notices on residential closings

A real estate contract that a licensee provides for the sale of a single-family home must say in bold type that the buyer can choose the title insurance company, settlement company, escrow company, lender and title lawyer (Business Occupations and Professions §17-524).

Dates to put on every Maryland file

Settlement date, and lender funds received on or before it, in an acceptable form (§7-109)
Tax certificate from the collecting agent before recording (§3-104)
Seller residency or principal residence certification, or the withholding amount (Tax-General §10-912)
First-time buyer sworn statement, if the reduced transfer tax applies (Tax-Property §13-203)
Recording date with the circuit court clerk

And for the office: the MAHT annual report by March 31 (COMAR 31.16.03.06) and each producer’s license renewal (MIA licensing page).

Federal TRID dates still apply

None of this replaces the federal timing rules. The Closing Disclosure still has to be received three business days before consummation, and refinances still wait out the right of rescission. See TRID business days, explained, or count a file’s dates with the closing deadline calculator.

Keep every date in one place

Closing Desk tracks the deadlines on every open file and puts the ones that need someone today at the top. Our free tax calculator covers Maryland state and county transfer and recordation taxes.

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Other state guides: Virginia · DC · All resources

This is a general summary of Maryland law as of October 2026, not legal advice. County rules, lender instructions, underwriter requirements and later changes to the law can add to it; check the current Maryland Code and your underwriter for each file.