Title and settlement in Ellicott City, MD

Settling on a home in Ellicott City

Ellicott City is the county seat of Howard County, but it is not an incorporated town. There is no city tax and no town transfer tax: a home here pays Howard County and Maryland rates only. Our Howard County page shows every rate with its source. This guide explains what those rates mean at the settlement table, and the local checks that matter here: flood risk near the historic district, the extra lines on a Howard County tax bill, homeowners associations, and older lots.

For the full county breakdown, see our Howard County closing costs guide.

Who pays what at a Howard County settlement

Three government taxes are charged when the deed is recorded:

• 0.5%Maryland’s transfer tax, at 0.5% of the price.
• 1.25%Howard County’s transfer tax, at 1.25% of the price (effective July 1, 2020).
• $2.50 per $500Howard County recordation tax, at $2.50 per $500 of the price, about 0.50%. It is charged on every $500 of the price, and any amount left over counts as a full $500.

Unless the contract sets a different split, Maryland law has the buyer and seller share all three equally. Many contracts do set a different split, so the signed contract is what counts.

First-time buyers get a different rule. It applies when each buyer has never owned a Maryland home as their main residence and will live in this one. (A co-signer on the loan who will not live there may also be on the deed.) The state transfer tax then falls to 0.25% of the price, paid entirely by the seller. The county transfer and recordation taxes also become the seller’s, unless the contract expressly says the seller will not pay them. Each buyer must give a statement under oath that they qualify. Our first-time buyer exemption guide covers who qualifies.

Howard County’s published guidance lists no general first-time buyer discount on the county’s own taxes. The one county program we know of is narrower: it covers the county’s own police, deputy sheriffs, fire and rescue members and Board of Education teachers, turns on their first purchase of a home in Howard County rather than the Maryland first-time buyer test, and carries a three-year condition to live in the home and stay in the job. The employer has to complete the form before the deed is presented, so an Ellicott City buyer who might qualify should raise it when the contract is signed. Our Howard County closing costs guide sets out the conditions in full.

The buyer’s purchase money mortgage or deed of trust does not add recordation tax of its own if it meets the law’s conditions: it is part of the same transaction as the deed, it says on its face that it secures the purchase money, it is signed within 30 days of the deed, and it is recorded no later than 30 days after the deed is recorded.

A worked example at the county median

Take $640,500, the Howard County median sale price. The three taxes at that price are $3,202.50 state transfer tax, $8,006.25 county transfer tax and $3,202.50 recordation tax, or $14,411.25 in all. Split equally, that is $7,205.63 for the buyer and $7,205.62 for the seller (the odd cent from halving the county transfer tax goes to the buyer).

If the buyer qualifies as a first-time Maryland buyer, the state transfer tax on the same price is $1,601.25, and if the contract is silent the buyer pays none of the three taxes. Enter your contract price in the calculator on our Howard County page for your own numbers.

These are government taxes only. Not included: title insurance, our settlement fee, lender charges, recording fees, and the tax and HOA adjustments described below. A lender will normally require a lender’s title policy. An owner’s title policy, which protects the buyer, is optional in Maryland, and its premium is paid once, at settlement. For a full estimate, use our instant quote.

Flood history and what it means for a purchase

Historic Ellicott City flooded in 2011, 2016 and 2018. The county’s Ellicott City Safe and Sound plan responds with seven projects that work together to hold back and carry away storm water. The county reports that the H-7 pond was finished in October 2022 and the Quaker Mill pond in February 2023, and it announced the opening of the H-4 pond in September 2025. The largest project, the Extended North Tunnel, was under construction when we last checked, and the remaining projects were at earlier stages. Project schedules change, so check the county’s flood mitigation projects page for the current status.

These projects are meant to lower the risk. They do not remove it. If you are buying near the Tiber Branch, Main Street or the lower part of town:

• Look up the flood zone on the FEMA Flood Map Service Center before you sign, and get a flood insurance quote. FEMA says homes in high-risk flood areas with a mortgage from a government-backed lender must carry flood insurance.
• Ask the seller about past flooding and any insurance claims or disaster aid. A Maryland law passed in 2026 (Chapter 776) will require many sellers of homes, starting July 1, 2027, to give the buyer a completed flood risk disclosure form before the contract is signed. The Maryland Department of the Environment is to publish the form. The law has exceptions, so ask your agent or us whether it will apply to your sale.
• Ask about easements. Recorded easements, such as rights for drainage or utility lines, can limit what you build or where. We can tell you about any easement the title search finds.
• Remember what title insurance covers. It protects ownership, not the building. It does not pay for flood damage.

Historic district, HOAs and older lots

Old Ellicott City lies in the Ellicott City Historic District, one of two local historic districts in Howard County. There, the county’s Historic Preservation Commission must issue a certificate of approval for exterior changes, including new construction, alterations, repairs and demolition. Some small jobs can be approved by staff as minor alterations. If you plan to change the outside of the house, check with the commission’s staff in the Department of Planning and Zoning before you settle.

Many newer subdivisions have a homeowners association. On the resale of a home in an association, the seller must give you the association’s disclosures. If you do not have all of them at least five calendar days before you sign the contract, Maryland law gives you five calendar days after you receive them all to cancel the contract in writing. Condominiums follow a different law with its own deadline. Before settlement we ask the association for a statement of what is owed, so dues and any fees can be paid and adjusted between buyer and seller.

Older lots can be described in old deeds by landmarks such as walls, trees or a neighbor’s line rather than by a modern survey. Fences, steps and retaining walls can cross the line. A survey or location drawing, read against the deed, can show problems before they become disputes.

Maryland law requires every contract for the sale of real property to carry a Chesapeake Bay critical area notice, and the notice itself says Howard County has no land in the critical area. The separate military installation notice is not required in Howard County.

Is the house really in Howard County?

The Patapsco River forms Howard County’s eastern edge. Across the river from historic Ellicott City, homes in Oella and nearby are in Baltimore County, where the county transfer tax is 1.5% of the price and deeds are recorded in Towson. A mailing address does not settle the question. Look up the property on the SDAT Real Property Data Search, which shows the county, or ask us and we will check before the contract is written.

How Maryland First Title handles Ellicott City settlements

Maryland First Title has handled Maryland real estate settlements since 1994, and we work across the whole state. Our attorney settlement agents can travel to you in Ellicott City, to your home, your agent’s office or another place that suits you, at no extra cost. If you prefer, settle at our Glen Burnie office, 306 Crain Hwy N. Our services include residential settlements, deeds and family transfers, including homes passed down in a family, and settlements for sellers without an agent and buyers without an agent.