Title and settlement in Arnold, MD

Settling on a home in Arnold

Arnold is on the Broadneck peninsula, with the Magothy River on one side and the Severn River on the other. Buying or selling here works the same way as in the rest of Anne Arundel County, but three local points deserve attention:

• Critical area rules. Land within 1,000 feet of tidal water or tidal wetlands is in the Chesapeake Bay critical area, which limits what can be built and where.
• Water access. Some communities have a shared beach, pier or boat ramp, and the right to use it may belong to some lots and not to others.
• Community district charges. Some subdivisions pay an extra yearly charge on the county tax bill, so two houses near each other can have different bills.

Below we cover each of these, the taxes due at settlement, and the steps from signed contract to recorded deed.

Settlement taxes in Arnold

Arnold has no town government of its own, so there is no town property tax and no town transfer tax. For FY2027 (July 1, 2026 - June 30, 2027), the property tax rates are $0.968 per $100 of assessed value for the county and $0.112 per $100 for the state. If you live in the home and have the homestead credit, increases in your taxable assessment for county tax are capped at 2% a year.

A sale triggers three one-time taxes:

• 0.5%State transfer tax0.5% of the price.
• 1.0%County transfer tax1.0% of the price up to $999,999.99; 1.5% of the whole price when the price is $1,000,000 or more.
• $3.50 per $500Recordation tax$3.50 per $500 ($7.00 per $1,000), about 0.70%; rounded up to the next $500.

The worked example here uses the countywide median sale price for July 2025 to June 2026, $509,990. That is a county figure, not an Arnold one. At that price the three taxes are $2,549.95 (state transfer), $5,099.90 (county transfer) and $3,570 (recordation), a total of $11,219.85. Split equally, the buyer pays $5,609.92 and the seller $5,609.93; the seller’s share is one cent higher because the state transfer tax does not divide evenly. Enter your own price in the calculator on our Anne Arundel County page to see your numbers.

Two more rules change the figures:

• The million-dollar tier. Once the price reaches $1,000,000, the county transfer tax is 1.5% of the entire price, not just the amount over the line. On a $1,200,000 sale the three taxes total $32,400, or $16,200 for each side when shared equally.
• No recordation tax on your purchase loan. The recordation tax on a purchase is charged on the deed. The buyer’s purchase-money mortgage or deed of trust is not taxed again, as long as it says on its face that it secures the purchase price, is signed within 30 days of the deed and is recorded no later than 30 days after the deed.

The contract decides who pays these taxes. If it says nothing, Maryland law has buyer and seller share them equally. The law makes one exception. If the buyer has never owned a Maryland home they lived in, and will live in this one, the state transfer tax falls to 0.25% and is the seller’s to pay in full. The county transfer and recordation taxes then fall on the seller too, unless the contract expressly says otherwise. See the first-time buyer guide for who qualifies.

Taxes are not the whole cost of settling. Your figures will also include title insurance, our settlement fee, lender charges, recording fees and the property tax adjustment, so use the instant quote for a complete number. The Anne Arundel County closing costs guide breaks down every county charge.

Water-privileged lots and community district charges

What “water-privileged” means

A listing that calls a house “water-privileged” usually means the lot is not on the water itself but comes with the right to use a shared beach, pier, boat ramp or park. That right has to come from somewhere: wording in the deed, a dedication on the recorded subdivision plat, or membership in a community association. Some rights belong only to certain lots; others extend to every lot in the subdivision.

A title search covers what is recorded: the deeds, the subdivision plat and any recorded covenants or easements. Where a water access right is recorded, those documents show where it comes from and which lots it covers. A right that rests only on association membership or association rules may not appear in the land records at all, so ask the association too. A boat slip is a separate matter. A slip at a community pier may be assigned by the association under its own rules rather than passed on by deed, so if a listing says a slip is included, check the association’s rules and ask the association before you rely on it.

Community district charges on the tax bill

The County Council sets each district’s charge every year. The levy ordinance for FY2027 (July 1, 2026 - June 30, 2027), Bill 33-26, covers 95 districts in all (77 community benefit, 14 shore erosion control and 4 waterways improvement), and the money pays for community facilities, shore protection or waterway work.

The way each district charges varies. Some charge a flat amount per tax account, some charge per platted lot or per improved lot, and others charge a rate per $100 of assessed value. One waterways district charges every account a base amount and charges waterfront accounts an extra amount on top. Because district membership goes by lot, the same road can have lots both inside and outside a district.

What this means for you:

• Before you buy: look at the seller’s latest county tax bill. A district charge is billed with the county property tax, and it stays with the house after you buy it.
• At settlement: because the charge is billed with the county property tax, it is commonly divided between buyer and seller along with that tax. Your contract and settlement statement show how it is handled in your sale.
• Association dues are not the same thing. A civic association or homeowners association sends its own bill for dues, separate from the tax bill. A lot may have a district charge, association dues, both or neither.

The Anne Arundel special tax districts guide explains these charges in more depth.

Lots near the water and the critical area

The critical area is the land within 1,000 feet of mean high tide or tidal wetlands. A minimum 100-foot buffer applies; in Limited Development and Resource Conservation Areas impervious surface is limited to 15%-31% of the site; Resource Conservation Areas allow one dwelling per 20 acres. The county program was first approved in 1988. A lot does not have to touch the water to be inside the critical area.

Maryland law requires a sales contract to include a critical area notice. The notice is general: it does not tell you whether a particular lot is inside the critical area or what has already been built on it. On a shoreline property, pay attention to decks, patios, sheds, piers and bulkheads close to the water. A title search covers what is recorded in the land records. It does not show whether a structure in the buffer was built with the permits it needed. Ask the seller for permits and approvals, and on a shoreline lot think about ordering a current survey.

Anne Arundel adds a contract rule of its own. When the county or the State has started enforcement over certain local-law violations at a property, the contract has to describe the violation, say how far the case has gone and explain what the buyer may need to do to fix it. That disclosure is not needed once the violation has been cured and the buyer has nothing left to do.

Shorelines change over time. Erosion, fill and new bulkheads can put the water’s edge somewhere other than where an old deed or plat shows it. Comparing a survey with the recorded description will show any difference before settlement rather than after. Our article on handling boundary disputes explains how these are resolved, and the critical area guide covers buffers and building limits.

Other things the title work should catch

• Inherited homes. When the seller is an estate, the deed is usually signed by the personal representative, so the estate must be opened and a personal representative appointed before settlement. Maryland inheritance tax of 10% applies to property left to heirs such as nieces, nephews, cousins and friends. Close family is exempt, including a spouse, parents and grandparents, brothers and sisters, children and stepchildren, grandchildren and other descendants, and the spouses of children and of their descendants. An heir who lives in the home may keep the homestead and homeowners’ credits, or apply for them, for up to three tax years while probate is open, by filing SDAT’s heirs’ affidavit before the deed passes to them. See our inherited house guide and our deeds and family transfers service.
• Older subdivisions. Older plats and deeds can describe lots, roads and shared land loosely. Who owns a community beach or an unpaved lane is answered by the plat and the land records, not by the listing.
• Deferred water and sewer charges. Anne Arundel County has let some older and disabled owners defer certain water and wastewater connection charges and front foot benefit assessments on the home they live in. Under the program’s last published terms, a deferred amount stays a lien on the property and is due in full when it is sold. If the seller is an older or disabled owner, ask early whether any charges were deferred, so the amount can be paid from the sale proceeds. If the house is on a private well or septic system, ask your lender early what testing or inspection it needs.
• Sellers who live outside Maryland. The deed cannot be recorded until a payment is made to the state from the seller’s proceeds: 8.75% of the net proceeds paid to an individual seller, or 8.25% for a business seller. It does not apply in some cases, for example when the seller certifies that the home is their principal residence. Our nonresident seller guide has the details.

Working with Maryland First Title

We are an attorney-led title and settlement company and have served Maryland since 1994. Our attorney settlement agents can meet you at our Glen Burnie office, 306 Crain Hwy N, or travel to you in Arnold at no extra cost. We search title, issue owner’s and lender’s title insurance policies, prepare the settlement figures and record the deed. In Maryland an owner’s policy is optional, and its premium is paid once, at settlement. Learn more about our residential settlement service, or about support for selling without an agent and buying without an agent. To see what an owner’s policy covers, read why title insurance matters.