Cal. Civ. Code § 8-103
Md. Code Ann., Real Property Art. Title 8 — Landlord and Tenant
Operative Text
There is no merger by reason of any grant by way of mortgage or assignment of mortgage from the tenant of any property leased for a term of years, to the landlord of the property, whether by original or sublease, and the same rights and remedies exist as if the grantee in the grant had no other interest or estate in the property than the one granted.
Maryland Real Property § 8-103 addresses a legal concept called 'merger,' which would otherwise occur when a tenant's mortgage interest and a landlord's ownership interest in the same property combine in one party's hands. Under this provision, when a tenant who holds a leasehold interest grants a mortgage or assigns a mortgage to the landlord of that same property, the two interests do not automatically collapse into one. Instead, the mortgage or assignment retains its independent legal standing, and the parties retain the same rights and remedies as if the landlord held no other interest in the property beyond what was granted.
Plain English — not legal advice.
Under Md. Code Ann., Real Prop. § 8-103, landlords who receive a mortgage grant or mortgage assignment from their own tenant should understand that accepting such an interest does not extinguish or absorb the underlying lease relationship. Compliant operators typically document these transactions carefully to preserve the distinct legal character of each interest involved. Keeping clear records of the separate interests helps ensure that rights and remedies available under the mortgage remain enforceable independent of the landlord's ownership stake.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Md. Code Ann., Real Prop. § 8-103 protects tenants who grant a mortgage or assign a mortgage to their landlord by ensuring that the legal rights attached to that mortgage are not lost simply because the landlord already holds an ownership interest in the property. This means a tenant in such a transaction retains the same remedies that would exist if the grantee were a completely unrelated third party. Tenants navigating these arrangements may benefit from consulting a tenant-rights organization or independent legal counsel to understand how this anti-merger protection applies to their particular lease and mortgage documents.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated October 14, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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