Title and settlement in Brooklyn Park, MD

Why a 21225 address can mislead

Brooklyn Park lies along the southern edge of Baltimore City. Many Brooklyn Park homes have the 21225 ZIP code, which also covers Brooklyn, the city neighborhood on the other side of the line, and their mailing addresses read “Baltimore, MD”. The Postal Service sets ZIP codes for delivering mail. They do not decide which government taxes a house.

Brooklyn Park has no town government of its own: it is unincorporated land governed by Anne Arundel County, so there is no town tax. A sale here pays Anne Arundel County transfer and recordation taxes, the deed is recorded in Annapolis, and the yearly property tax bill comes from the county.

The two sides of the line are taxed very differently:

	Brooklyn Park (Anne Arundel County)	21225 homes inside Baltimore City
Local transfer tax	1% (1.5% at $1,000,000 or more)	1.5%
Recordation tax, per $500 of price	$3.50	$5.00
Property tax, per $100 of assessed value	$0.968 county + $0.112 state	$2.248 city + $0.112 state
Homestead credit cap on the local tax	2% a year	4% a year
Where the deed is recorded	Circuit Court for Anne Arundel County, in Annapolis	Circuit Court for Baltimore City, downtown

Property tax rates are for FY2027 (July 1, 2026 - June 30, 2027). On the city side, Baltimore City has an owner-occupant exemption: when the buyer will live in the home, the first $22,000 of the price is free of city recordation tax at any price, and free of city transfer tax only when the price is under $250,000.

Checking which side of the line a house is on

A listing, a mailing address or a map app can each get this wrong. These records settle it:

1. SDAT Real Property Search. Before it accepts a street address, SDAT’s search asks for the county. Choose Anne Arundel. If the house comes up, it is an Anne Arundel property. If it only comes up under Baltimore City, it is in the city.
2. The last tax bill. Brooklyn Park homes are billed by Anne Arundel County. A Baltimore City bill means the house is in the city.
3. The seller’s deed. Its recording details show which county’s land records hold it.

Settle this before the title search begins, because the search has to be run in the right county’s land records. An early figure built from the ZIP code, such as an online tax estimate or a lender’s first cost estimate, may use city rates. If a number looks high for Brooklyn Park, ask which jurisdiction it assumes.

Government taxes on a Brooklyn Park sale

Three taxes are due when the deed is recorded:

• 0.5%State transfer tax0.5% of the price, in every Maryland county.
• 1%Anne Arundel County transfer tax1% of the price, rising to 1.5% of the whole price when the price is $1,000,000 or more.
• $3.50 per $500Recordation tax$3.50 per $500 of the price. A part of $500 counts as a whole $500.

The calculator on our Anne Arundel County page shows these for any price, split into buyer and seller shares. At Anne Arundel’s countywide median sale price for fiscal 2026, $509,990, the three taxes total $11,219.85, or $5,609.92 for the buyer and $5,609.93 for the seller when they are shared equally. In general, the buyer’s purchase loan adds no recordation tax of its own when its mortgage or deed of trust secures the purchase money and is signed and recorded within the 30-day limits the statute sets.

These are government taxes only. Title insurance, the settlement fee, recording fees, lender charges and the property tax adjustment come on top. For a figure on a particular house, request an instant quote. The Anne Arundel County closing costs guide has every county rate in one place.

How the costs are divided

By default, Maryland law has buyer and seller share the transfer and recordation taxes equally. A contract can set a different split, and the signed contract is what counts.

A sale to a first-time Maryland home buyer changes the default. This applies when the buyer has never owned a Maryland home as a main residence and is buying an improved home to live in. In that case the state transfer tax is cut to 0.25% and is owed entirely by the seller. Unless the contract expressly says otherwise, the county transfer tax and the recordation tax become the seller’s as well. Each buyer on the deed must either qualify or be a co-maker or guarantor of the purchase loan who will not live there, and each gives a statement under oath. A seller weighing an offer from a first-time buyer should factor this in. Our first-time buyer transfer tax guide explains the rule in more detail.

Other items settled between the two sides:

• Property tax. Maryland’s tax year runs July 1 to June 30. The bill is prorated so each side pays for its own days of ownership.
• Homestead credit. The credit does not carry over to the buyer, who has to apply. State law requires the settlement agent to give the buyer a Homestead application at settlement, and SDAT also mails one to new owners after the deed is recorded. Once a buyer qualifies, the yearly rise in the assessment used for county tax is capped at 2%; the state tax uses a 10% cap.
• Sellers who live outside Maryland. Maryland requires tax to be withheld at settlement when the seller is a nonresident: 8.75% of the net proceeds paid to a nonresident individual, or 8.25% for a nonresident business entity. Exceptions include a seller who certifies under oath that the home is the seller’s principal residence, and a seller who presents a Comptroller certificate showing that no tax, or a smaller amount, is due.

The road to settlement

In Brooklyn Park, the title search starts by confirming the county, because a “Baltimore” mailing address here is taxed and recorded in Anne Arundel County. After settlement the taxes are paid and the deed and any mortgage are recorded in Annapolis. How a Maryland settlement works walks through every step from ratified contract to recorded deed, and what to bring on the day.

What the title search can turn up

Things that come up often enough to plan for:

• Sales after a death. When an owner has died, the title search has to show who now holds title and who has legal authority to sign the deed. Depending on how the home was owned, that may be a surviving co-owner, a trustee or the personal representative of the estate, and an estate may need to go through probate first. Under SDAT’s rules, an heir who lives in the home while probate is open can file an affidavit to keep, or apply for, the Homestead and Homeowners’ credits for up to three tax years. Our deeds and family transfers service handles deeds for inheritance and transfers within a family.
• Loans and liens still on record. A mortgage paid off long ago may never have been released, and a judgment against the seller can be a lien on the house. These are released or paid from the proceeds so the buyer receives clear title.
• Where the lines really are. A fence, shed or addition may not match the recorded plat. A survey or location drawing shows this before settlement.
• Open county code cases. In Anne Arundel County, if the county or the state has started enforcement over certain local-law violations, the sales contract must disclose the violation, where the case stands and what the buyer may have to do to cure it. Ask about any additions or work done without permits.
• Property near tidal water. Maryland’s Chesapeake Bay critical area generally covers land within 1,000 feet of tidal water or tidal wetlands, with extra rules on building, clearing and paved surfaces. Maryland sales contracts must include a critical area notice. Whether a particular lot is in the critical area is shown on the county’s critical area maps; check them before planning an addition or a patio.

An owner’s title insurance policy is optional in Maryland. It covers the buyer against certain problems a search cannot reveal, such as a forged deed or an unknown heir, subject to the policy’s terms, and its premium is paid once, at settlement. See why title insurance matters for more.

Recording in Annapolis

The deed for a Brooklyn Park home is recorded with the Clerk of the Circuit Court for Anne Arundel County, Land Records Department, 8 Church Circle, Annapolis, MD 21401. The office accepts electronic recording, so nobody has to carry the papers there. The county transfer and recordation taxes go to Anne Arundel County. The Baltimore City courthouse is not involved, whatever the mailing address says.

Settling with Maryland First Title

Maryland First Title is an attorney-led title and settlement company, in business since 1994, with its office in Glen Burnie, also in Anne Arundel County. Our attorney settlement agents can meet you at your home or another place that suits you at no extra cost, or you can sign at our office.

We confirm the county, search the title, clear what the search finds, prepare the settlement statement, issue title insurance backed by Stewart Title and record the deed. If you have an agent, start with residential title and settlements. Selling without an agent? See for sale by owner support. Buying without one? See purchase without agent support.