Title and settlement in South County: Shady Side, Churchton, Deale, Davidsonville and Lothian

South County is what locals call the southern end of Anne Arundel County: bay communities such as Shady Side, Churchton and Deale along the water, and the farm country around Davidsonville and Lothian inland. Only Annapolis and Highland Beach are incorporated; every other town (Glen Burnie, Pasadena, Severna Park and so on) is unincorporated and pays county rates only. So a home anywhere in South County pays county and state rates, with no town tax on top. What sets these settlements apart is not the tax rate. It is the small taxing districts along the shoreline, old county charges that can sit on a property for years and fall due on sale, and the wells, septic systems, private lanes and old cottage plats that come with rural and bay lots.

Use this guide if you are buying, selling or listing a home here. It covers the money due at settlement, what our title search looks for, and the steps between a signed contract and a recorded deed. It is general information, not legal advice for your own sale.

Settlement taxes: who pays what

A typical South County sale pays three government taxes when the deed is recorded. The rates are:

• 0.5%Maryland 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.

Maryland law presumes that buyer and seller split all three evenly, but the contract can say otherwise, and many do. Read the tax clause before you sign, because what the contract says is what counts. First-time buyers are the main exception. 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.

The calculator on our Anne Arundel County page does the sums. Using the county median price of $509,990 as an example, the three taxes total $11,219.85. On an even split the buyer pays $5,609.92 and the seller $5,609.93 (the odd cent falls to the seller). Type in your own price there, and turn on the first-time buyer option if it applies to you.

Two points come up often on South County sales:

• Higher-priced bayfront homes and farms. At a price of $1,000,000 or more, the county transfer tax rate is 1.5% instead of 1%, charged on the whole price. If a sale is priced close to that figure, run both prices through the calculator before you agree on terms.
• The buyer’s purchase loan. A purchase-money deed of trust delivered and recorded with the deed (within the 30-day windows in the statute) is not subject to recordation tax.

These figures are government taxes only. The title insurance premium, our settlement fee, the lender’s charges and the clerk’s recording fees are on top. An owner’s title policy is optional in Maryland; if you choose one, its premium is paid once, at settlement. Our instant quote estimates the full bill, and the Anne Arundel County closing costs guide sets out each county rate.

The tax bill: district levies along the bay

For FY2027 (July 1, 2026 - June 30, 2027), South County homes pay the county property tax rate of $0.968 per $100 of assessed value (down from $0.977 in FY2026) and the state rate of $0.112 per $100. Depending on the property, the county bill can also include a solid waste charge, a stormwater fee, a Bay Restoration fee and a district tax.

Anne Arundel County has 77 special community benefit districts, many of them waterfront neighborhoods. Their charges pay for shared things such as a community beach, pier or road. Some neighborhoods are also shore erosion control districts, which pay for bulkheads and other shoreline protection. The County Council sets every district’s charge once a year, and each district is named for its community. Three examples from this year’s levies:

• Avalon Shores SCBD: $135 per tax account.
• Cedarhurst-on-the-Bay SCBD: $0.19 per $100.
• Franklin Manor SCBD: $0.04 per $100.

Cedarhurst-on-the-Bay and Franklin Manor also have a separate shore erosion control district, so a home there can carry two district lines. Deale Beach is a community benefit district as well. Some districts charge a flat sum per tax account and others charge a rate on assessed value, so two neighborhoods close together can pay very different amounts.

Property taxes, district charges included, are usually prorated at settlement as the sales contract provides, so that each side pays for the part of the year it owns the home. Ask to see the seller’s current bill before you sign, so the district charge is in your budget from the start. Our special tax districts guide covers these districts across the county.

If the home will be your main residence, apply for the homestead credit. In Anne Arundel County it limits the yearly increase in the assessment used for county tax to 2%. The credit does not carry over to a buyer. SDAT mails an application to new owners after the deed is recorded, and the settlement agent must give the buyer a copy of the Homestead application at settlement.

Deferred utility charges that come due on sale

Anne Arundel County has let some owners put off paying certain water and sewer connection charges and front foot benefit assessments. Under the county’s published guidelines, the deferment is for a single-family home that is the owner’s main residence, where the owner is 60 or older (or the surviving spouse of such an owner) or permanently and totally disabled, and the household’s income is under the county’s limit. The deferred amount remains a lien on the property, and when the property is sold or the title is transferred, the full balance falls due.

Sellers are sometimes caught out, because a deferment may date back many years and will not appear in the listing. We look for these charges when we order the county’s lien and utility figures, and the balance is usually paid from the seller’s proceeds. If you think a deferment was granted on your home, tell us early so it does not hold up settlement.

What we check on South County titles

Shoreline lots and the critical area

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. Waterfront and near-water lots in Shady Side, Churchton and Deale are often inside it. Maryland requires every sales contract to include a critical area notice, but the notice cannot tell you whether the pier, bulkhead, shed or patio on a particular lot was built with the approvals it needed. Ask the seller for permits for any work near the shore. If you plan to build, add on or pave, check with the county’s critical area staff before you commit, because the rules can limit what the lot allows. Our waterfront and critical area guide has more.

Low-lying bay lots may also be in a flood zone. Look up the address on the FEMA flood map early. If the home is in a high-risk flood zone and you are borrowing, most lenders will require flood insurance, and the premium belongs in your budget.

Cottage lots and older plats

Some bay neighborhoods were first laid out as small cottage lots, and a house may sit on two or more of them combined. The deed description, the old plat and the fence line do not always agree, and some plats show “paper” streets that were never built. A survey will show whether the house, driveway or outbuildings cross a lot line. Rights to use a community beach or pier may come from the deed, the plat or recorded covenants, so we look for the source in the land records. Our post on handling boundary disputes explains the options if the lines do not match.

Rural lots in Davidsonville and Lothian

Inland, the questions are different. Many homes rely on a private well and a septic system, so the contract should say who orders the water test and the septic inspection, and by what date. Some homes are reached by a private lane: we look for a recorded right of way, and buyers should ask whether a written agreement says who maintains the lane. Farms and large lots may carry recorded conservation or farmland preservation easements that limit building on or dividing the land, and these can bind later owners too.

Near the southern and western edges of South County, confirm that the address really is in Anne Arundel. The county borders Calvert to the south and Prince George’s across the Patuxent, and each has its own tax rates (Calvert, Prince George’s). Our guide on which county an address is in explains how to check.

Associations, estates and sellers who live out of state

When the home is in a homeowners association, Maryland law requires the seller to give the buyer a set of association documents. A buyer who receives them late may have a short time to cancel the contract after they arrive, so ask for them early. When the owner has died, the deed is usually signed by the personal representative of the estate; see our guide to selling an inherited house in Anne Arundel County and our deeds and family transfers service. If any seller lives outside Maryland, Maryland tax is withheld from that seller’s proceeds at settlement unless an exemption applies, for example when the seller certifies that the home is their principal residence. For an individual the amount withheld is 8.75% of the net proceeds actually paid to that seller (8.25% for a business entity), so tell us as soon as you know.

How Maryland First Title helps

Since 1994, settlements at Maryland First Title have been led by attorneys. An attorney settlement agent can meet you at home in Shady Side, Churchton, Deale, Davidsonville or Lothian at no extra cost, or you can come to our office at 306 Crain Hwy N in Glen Burnie. For residential sales and refinances we handle the work from title search and title insurance through escrow, settlement and recording, and we also support owners who are selling their home themselves.