Title and settlement in Severna Park, MD

Settling on a home in Severna Park

Severna Park lies between the Severn and Magothy rivers, and the B&A Trail runs through it. Severna Park is not an incorporated town. It has no town government, so there is no town property tax or town transfer tax. A sale here pays Maryland and Anne Arundel County taxes only, and the deed is recorded with the Clerk of the Circuit Court for Anne Arundel County, Land Records Department in Annapolis.

A Severna Park settlement often turns on two documents: the property tax bill and the survey. Some Anne Arundel neighborhoods pay a special district tax to the county, and lots near the Severn, the Magothy and their creeks can fall under the critical area rules. Both are simple to handle when they are found early. They cause trouble when they come up the week of settlement.

The taxes, and who pays them

Three government taxes are paid when a Severna Park home changes hands. The state transfer tax is 0.5% of the price. The Anne Arundel County transfer tax is 1.0% of the price up to $999,999.99; 1.5% of the whole price when the price is $1,000,000 or more. The county recordation tax is $3.50 per $500 ($7.00 per $1,000), about 0.70%; rounded up to the next $500.

Recordation tax and state and county transfer taxes are presumed to be shared equally between buyer and seller unless the contract says otherwise. Most Maryland sales contracts say who pays which tax, so read the signed contract rather than relying on the default.

First-time Maryland buyers pay less. For a sale to a first-time Maryland home buyer who will live in the home: the seller pays the whole state transfer tax (no exception), and the seller pays the whole recordation tax and county transfer tax unless the contract expressly says otherwise. A first-time buyer here means someone who has never owned a Maryland home that was their main home. Every buyer named on the deed must qualify, or be only a co-maker (co-signer) or guarantor of the purchase loan who will not live in the home, and each must sign a sworn statement. If you think you qualify, tell us early.

At the county’s median sale price of $509,990, the three taxes add up to $11,219.85. Shared equally, that is about $5,609.92 for each side. For a first-time Maryland buyer, the state transfer tax at that price falls to $1,274.98, and the seller pays it. If the contract is silent, the seller also pays the county transfer and recordation taxes, so the buyer pays none of the three. Our Anne Arundel County page shows each line with its source.

Two rules matter more as the price goes up:

• The million-dollar line. When the price is $1,000,000 or more, the county transfer tax is 1.5% of the whole price, not just the part above $1,000,000. Try your own price in the calculator on our Anne Arundel County page to see the difference.
• No second recordation tax on the purchase loan. A buyer’s purchase-money deed of trust is not charged recordation tax when it is recorded with the deed within the time limits the law sets. So recordation tax is paid once, on the deed, however large the mortgage.

These are the government taxes only. Title insurance, the settlement fee, lender charges, recording fees and tax prorations are extra. Our instant quote estimates the full cost at your price, and our Anne Arundel County closing costs guide goes through the county figures in more detail.

Special district taxes

Parts of Anne Arundel County are special taxing districts. The County Council sets each district’s tax every year in an ordinance. For FY2027 (July 1, 2026 - June 30, 2027) that is Bill 33-26, which covers 95 districts: 77 special community benefit districts, 14 shore erosion control districts and 4 waterways improvement districts. Community benefit districts pay for things the neighborhood shares, such as upkeep of community land and roads, improvements to community facilities, or extra security. Shore erosion control and waterways improvement districts pay for work such as bulkheads and channel dredging. The county collects the tax and passes it on to the group that runs each district, usually a community association.

What buyers and sellers should know:

• Check whether the home is in a district. Look at the home’s most recent property tax bill, not just the tax figure in the listing, and ask the seller or the community association.
• The amount can change every year. Some districts charge a flat amount per tax account, some per lot, and some a rate per $100 of assessed value. Two neighbors in different districts can pay very different amounts.
• It is usually divided at settlement. The county tax year runs from July 1 to June 30. On the settlement statement, the year’s property tax, including any district tax, is usually split between buyer and seller as of the settlement date. The contract controls.
• It is not the same as HOA dues. The district tax is set by the County Council and collected by the county. A homeowners association bills its dues itself. A home can owe both, so check for each.
• Ask what the tax pays for. The community association can tell you what the district tax funds and whether a larger project is planned.

We check the property’s tax status before settlement so the proration on your settlement statement is right. Our Anne Arundel special tax districts guide covers the districts across the county.

Waterfront and critical area lots

Lots within 1,000 feet of tidal water or tidal wetlands are in the Chesapeake Bay critical area, which brings a minimum 100-foot buffer and impervious-surface limits.

Every Maryland sales contract must carry the critical area notice, whether or not the home is near water. For a home on the Severn, the Magothy or one of their creeks, the notice is where the questions begin. Ask these before settlement:

• Were the pier, bulkhead, deck, shed and any additions built with the permits they needed? Work in the buffer is tightly limited and generally needs county approval.
• Does a current survey show every structure? Does anything cross a property line or sit inside a recorded easement?
• How much of the lot is already covered by roof, paving and other hard surfaces? A buyer planning a pool, garage or addition may find there is little room left under the limit.
• Do the deed or community documents give this lot its pier and water access, or is access shared through the community?

Title insurance covers problems with the title itself, such as a forged deed or an unpaid lien. It does not cover whether a structure meets zoning or critical area rules. A survey and the county’s permit records answer those questions. In Maryland an owner’s title policy is optional, and its premium is paid once, at settlement. Our critical area guide goes further, and our page on why title insurance matters explains what an owner’s policy covers.

Other title issues to watch for in Severna Park

• Water access rights. Some lots away from the shore come with rights to a community beach, park or pier. Those rights can come from deeds, plats, covenants or membership in the community association. Ask early how the right is created and whether it passes with the lot.
• Older plats. Older subdivision plats can show streets that were never built, community parcels and easements that no longer match what is on the ground. Fences and driveways can end up over the line.
• Homeowners associations. Where a homeowners association covers the lot, Maryland law generally requires the seller to give the buyer the association’s disclosure documents. A buyer who gets them late has a short time to cancel the contract in writing, so read them as soon as they arrive and ask us or your agent about the deadline.
• Deferred water and sewer charges. Anne Arundel County has let some older and disabled owners defer certain public water and sewer 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 the home is sold. If you are selling, tell us early if any charges were deferred so the amount can be paid from your proceeds.
• Estate sales. When the owner has died, the sale usually runs through the estate, and the personal representative appointed for the estate generally signs the deed. Bring us the estate papers early so we can confirm who must sign. Maryland inheritance tax is 10% on property passing to non-exempt heirs (for example nieces, nephews, cousins, friends). Our deeds and family transfers service works with families on these sales.
• Sellers who live outside Maryland. Tax is withheld from a nonresident seller’s proceeds at settlement: 8.75% of the total payment to the seller, meaning the net proceeds actually paid to the seller (nonresident individuals). It does not apply when each seller certifies, under penalty of perjury, that the home is their principal residence, and a seller can also ask the Comptroller for a certificate showing that no tax, or a smaller amount, is due. Tell us early so the right forms are ready.
• Homes beside the B&A Trail. The trail is a county park on the route of the former Baltimore and Annapolis Railroad. If a yard backs onto it, check the survey for sheds, fences or gardens that reach onto trail land.

How Maryland First Title helps

Maryland First Title has provided attorney-led title and settlement services since 1994, and our only office is at 306 Crain Hwy N in Glen Burnie. Our attorney settlement agents can meet you at home or anywhere else in Maryland at no extra cost, meet with you online, or settle at our office, and weekend and after-hours appointments are available. Selling without an agent? Our for sale by owner support helps with the paperwork, the title work and the settlement. Otherwise, start with our residential settlement service.