274 A.3d 1079
Md.2022Background
- Thornton Mellon bought property at a Baltimore City tax sale (certificate issued May 15, 2017) and later sued to foreclose the owner’s right of redemption; the circuit court entered judgment July 10, 2019.
- The judgment recited that the plaintiff was vested with “an absolute and indefeasible fee simple title” and ordered the Director of Finance to execute a deed to the plaintiff, "his successors and assigns," upon payment of post-sale amounts.
- On July 11, 2019 (one day after judgment), Thornton Mellon executed an assignment of the tax-sale certificate and the judgment to Ty Webb, LLC and presented a draft tax deed asking the City to issue the deed to Ty Webb.
- The City refused, arguing the certificate and judgment were extinguished/vested as fee simple in Thornton Mellon upon entry of judgment and thus not assignable post-judgment; it insisted transfer must occur by deed from Thornton Mellon if at all.
- The circuit court and Court of Special Appeals rejected the City’s view, ordered the City to issue the deed to Ty Webb, and the Court of Appeals affirmed: judgment foreclosing redemption creates equitable (not legal) title; legal fee simple vests only when the collector executes and delivers the deed after statutory post-judgment conditions are met.
Issues
| Issue | Plaintiff's Argument (City) | Defendant's Argument (Thornton Mellon/Ty Webb) | Held |
|---|---|---|---|
| Whether the court’s foreclosure judgment vests fee simple legal title immediately | Judgment language vests absolute fee simple title by operation of TP §14-844(b); certificate and judgment not assignable post-judgment | Judgment creates equitable title only; legal title conveys by tax deed after payment of post-judgment amounts | Judgment creates equitable title; fee simple legal title vests only upon execution/delivery of deed after statutory conditions satisfied |
| Whether a tax-sale certificate remains assignable after entry of judgment | Certificate extinguished upon judgment and thus not assignable | TP §14-821 permits assignment and nothing limits assignment post-judgment; certificate remains effective until deed conveys legal title | Certificate remains assignable after judgment; statute contains no post-judgment bar to assignment |
| Whether the foreclosure judgment itself is assignable | If judgment vested fee simple title, it cannot be assigned — conveyances must be by deed | Judgment is a chose in action (equitable right to title) and is assignable | Judgment (representing equitable right) is assignable; statute does not prohibit assignment |
| Whether the circuit court erred in ordering the City to execute deed to assignee | City contended the court should not treat a post-judgment assignment as effective | Assignee prepared deed, was substituted, and satisfied procedural requisites; court may use revisory power within 30 days | No error; court permissibly substituted assignee and directed deed; revisory power or assignability supports the order |
Key Cases Cited
- Kingsley v. Makay, 253 Md. 24 (Md. 1969) (legal title generally does not pass until deed executed and recorded)
- Magraw v. Dillow, 341 Md. 492 (Md. 1996) (tax-sale purchaser holds an inchoate lien/right that ripens on successful foreclosure)
- Lippert v. Jung, 366 Md. 221 (Md. 2001) (tax deed creates a new title under sovereign grant; properly acquired tax titles are new grants)
- Hardisty v. Kay, 268 Md. 202 (Md. 1973) (certificate holder’s position in tax foreclosure analogous to mortgagee; remedies where purchaser fails to pay)
- McMahon v. Crean, 109 Md. 652 (Md. 1909) (tax deed, if valid, clothes purchaser with a new and complete title)
- Empire Properties v. Hardy, 386 Md. 628 (Md. 2005) (in foreclosure context, equitable title passes on ratification; legal title upon payment and deed)