Waterfront homes in Anne Arundel County: the critical area and other title issues

Anne Arundel County is bounded on the east by the Chesapeake Bay, and tidal rivers and creeks run through it. A sale on or near tidal water usually brings three things an inland sale does not: building limits tied to the shoreline, district charges on the tax bill, and rights in the water in front of the land. Each is easier to deal with while the contract’s review periods are still open. Taxes and recording for the whole county are on our Anne Arundel County page.

What the critical area means

Maryland passed the Chesapeake Bay Critical Area Law in 1984, and Anne Arundel County’s own program was first approved in 1988. The critical area reaches 1,000 feet landward from mean high tide or the edge of tidal wetlands, and it also takes in the tidal water itself and the land under it. Inside that line, the county sorts land into three classes, and the class decides how much can be built:

• Intense Development Area (IDA). Medium- to high-density housing, commercial or industrial uses can be built.
• Limited Development Area (LDA). Low- to medium-density housing, at fewer than four homes per acre.
• Resource Conservation Area (RCA). Housing is limited to one home per 20 acres.

A Maryland contract for the sale of real property must include a notice that all or part of the property may be in the critical area. The notice does not say whether this lot is inside the line, or in which class. To find out, look the address up on the county’s critical area maps through MyAnneArundel, the county GIS map or the state’s MERLIN map, or call the county’s critical area staff at (410) 222-7960.

The 100-foot buffer

Closest to the water is a buffer of at least 100 feet, measured landward from the mean high-water line of tidal water, from each bank of a tributary stream, and from the upland edge of a tidal wetland. Building in the buffer or disturbing it generally needs a variance first.

Steep slopes, nontidal wetlands and wet or highly erodible soils next to the buffer make it wider. Where slopes of 15% or more adjoin it, the buffer grows by 4 feet for every 1% of slope, or to 50 feet past the top of the slope, whichever is greater, so on a bluff lot the line can sit well back from the water. Some shoreline areas are mapped by the county as buffer modification areas, where the buffer is not widened and special building standards apply instead.

Trees surprise many buyers. The county requires an approved plan before trees or other plants are removed in the critical area, even a dead or damaged tree. Taking out a single tree or making a path to the water can go on a standard county form; larger clearing usually needs a plan prepared by a professional, and replanting must use native species.

Lot coverage: driveways and patios count

In Limited Development and Resource Conservation Areas, the county limits hard surfaces to between 15% and 31% of a site, depending on the lot. “Lot coverage” counts more than buildings: parking areas, driveways, walkways, gravel, stone, pavers, stairways and solid decking all count, and it is worked out separately from the zoning limit on buildings.

State law starts at 15% of a lot, or 25% for a lot of half an acre or less that existed on or before December 1, 1985. It lets the county allow somewhat more where the owner keeps the impact down and either does work on the site to offset it or pays a fee instead. A lot that was legally developed as of July 1, 2008 may be treated as legally nonconforming, so what is already there may be allowed to stay; adding more is where the limits bite.

The land records show deeds, plats, liens and easements. They do not show whether a patio, shed or addition was permitted, so ask the seller for permits and compare them with a current survey. In Anne Arundel County there is also a contract rule: if the county or the state has already started enforcement over a critical area violation of a local law, such as grading, sediment control, stormwater or zoning rules, the contract must say what the violation is, where the case stands and what the buyer may have to do to fix it. A violation that has been fixed, leaving the buyer nothing to do, need not be disclosed.

Piers, bulkheads and rights in the water

Under Maryland law, the owner of land along navigable water gains land that builds up naturally along the shore, and may build into the water in front of the land to reach the water or to protect the shore; what is built belongs to the owner of the land. Land lost to erosion after January 1, 1972 may be reclaimed, but the owner has to prove the loss. New shore protection generally has to be a living shoreline of marsh plants and other natural materials, not a bulkhead or stone wall, unless the owner shows the state that this will not work or the area is mapped as suited to structural protection.

Building or changing a pier needs an application to the Maryland Department of the Environment, which reviews it jointly with the U.S. Army Corps of Engineers, as well as the county’s own approvals. MDE says a working pier installed before February 14, 1994 that does not meet today’s rules might be exempt.

The title questions on a waterfront file follow from this:

• Do the water rights come with this lot? Under the law above, they go with land that touches the water. If the plat shows a strip, a road or a community parcel between the lot and the shore, the rights may belong to the owner of that strip, not to the house. The deeds and plat are checked for this.
• Where is the shoreline now? Erosion, fill and new bulkheads move the water’s edge. A survey checked against the deed shows whether the lot on the ground matches the one on paper.
• Is the pier shared? If a pier or ramp is shared with a neighbor, ask whether there is a written agreement or easement and whether it is recorded in the land records. A handshake does not bind the next owner.
• What will the title policy say? An owner’s policy may list rights in the water, or land at or near the water line, as exceptions. Ask us before settlement what yours will and will not cover.

Shore erosion and waterway district charges

For FY2027 (July 1, 2026 - June 30, 2027), County Council Bill 33-26 sets charges for 95 districts: 77 special community benefit districts, 14 shore erosion control districts and 4 waterways improvement districts. According to the county, shore erosion control and waterways improvement districts are formed to build, repair and maintain erosion control works, build or repair bulkheads and dredge channels, and in most cases the work is funded by no-interest state loans to the county on the districts’ behalf. Community benefit districts cover other shared costs, such as community roads and facilities.

The charges are worked out in several ways: a rate on assessed value, a flat amount per tax account or per lot, and at least one waterway district that charges every account and adds a further charge on waterfront accounts. Some communities are in both a community benefit district and a shore erosion control district, and pay both charges. Riviera Beach SECD (a shore erosion control district) is charged $0.04 per $100 of assessed value this year, on top of the county rate of $0.968 per $100 and the state rate.

Check the seller’s latest county tax bill, not the listing. The charge is levied on the property, so a new owner keeps paying it. Maryland sales contracts commonly have the year’s property taxes adjusted (prorated) to the settlement date, and the district charge is normally adjusted along with them. Your own contract sets the terms.

Settlement taxes on a waterfront sale

A waterfront sale pays the same three government taxes as any Anne Arundel sale: state transfer tax, county transfer tax and recordation tax. The estimator above works out each tax and your share for the price you enter, and the rates with their sources are under Facts and sources at the end of this page. Maryland law presumes that buyer and seller share them equally unless the contract says otherwise. When the buyer is a first-time Maryland buyer who will live in the home, the state transfer tax is 0.25% and the seller pays all of it, and the seller also pays the county transfer and recordation taxes unless the contract expressly says otherwise. Every buyer on the deed must give a sworn statement, either as a first-time buyer who will live there or as a co-signer of the purchase loan who will not.

What matters most on the water is the county’s top tier: at $1,000,000 or more, the county transfer tax is 1.5% of the whole price. At the county median price of $509,990 the three taxes come to $11,219.85; on a $1,200,000 waterfront sale they come to $32,400. The buyer’s purchase-money mortgage or deed of trust is not charged recordation tax when it is part of the same transaction as the deed, says on its face that it secures the purchase money, and is signed and recorded within the time limits the law sets. These figures leave out title insurance, the settlement fee, lender charges and tax adjustments; our instant quote covers those.

If the seller lives outside Maryland, part of the net proceeds paid to the seller must be withheld for state income tax: 8.75% for an individual and 8.25% for an entity. Exemptions include a seller who certifies, under penalties of perjury, that the home was their principal residence, and a certificate from the Comptroller. Raise it early. And for every buyer: 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.

From contract to recorded deed

1. Contract. Read the critical area notice and any Anne Arundel violation disclosure. The deposit is held as the contract directs, and the title order is opened.
2. Early checks. Order the survey and ask the seller for permits for the pier, bulkhead, decks and additions. Check the lot on the critical area map.
3. Title search. The deed chain, plat and covenants are checked for water rights, easements and any community beach or pier rights, and the records are searched for liens. In Anne Arundel these can include county water and sewer charges, such as front foot benefit assessments or connection charges that an earlier owner deferred under a county program. Raise them early, so the amount still owed is known before settlement.
4. Association documents. If the home is in a homeowners association, its documents set the rules for any shared beach or pier. A buyer who did not get them at least five days before signing can cancel within five calendar days of receiving them all, so ask for them early.
5. Loan and Closing Disclosure. For most home loans, the lender must give the buyer the Closing Disclosure at least three business days before closing on the loan.
6. Settlement. Documents are signed and funds are sent. We send wiring instructions by email, and criminals send fake ones the same way. Before you wire money, call our office at (410) 768-2300, the number on this website, to confirm the instructions; never use a phone number taken from an email. Our wire fraud warning explains what to look for.
7. Recording. The county Office of Finance reviews the deed, collects the county taxes and endorses it. It is then recorded, on paper or electronically, with the Clerk of the Circuit Court for Anne Arundel County, Land Records Department, 8 Church Circle, Annapolis, MD 21401.

How a Maryland settlement works covers each of these steps in more detail.

Other issues on older waterfront files

On an older lot, fences, sheds and bulkheads do not always follow the recorded lines; our article on boundary disputes explains how these are handled. If the home is being sold by a personal representative through an estate, the deed and the estate paperwork need extra care; see our deeds and family transfers service. If the home has a private well or septic system, agree in the contract who arranges the tests and by when.

Working with Maryland First Title on the water

Maryland First Title is a title and settlement company led by attorneys and has served Maryland since 1994. On a waterfront purchase, call us before settlement with questions about the plat, the deeds or what your owner’s policy will cover. We will meet you anywhere in Maryland for settlement at no extra cost, or host you at our office at 306 Crain Hwy N in Glen Burnie, and weekend and after-hours settlements are available by appointment. See residential settlements, or how we help owners selling without an agent and buyers without an agent.