Title and settlement in Bowie, MD

Bowie settlements follow Prince George’s County rules, with a few local differences. A home inside the City of Bowie pays city property tax as well as county tax, the city has two water and sewer providers, and some newer homes carry private water and sewer charges that must be disclosed when the home is first sold. Here is who pays what, how settlement runs and what we check on Bowie titles.

Who pays what at a Bowie settlement

A Bowie sale carries three taxes, all due at recording:

• 0.5%State transfer tax0.5% of the price.
• 1.4%Prince George’s County transfer tax1.4% of the price.
• $2.75 per $500Recordation tax$2.75 per $500 of the price, about 0.55%. It is charged on each $500 of the price or part of $500, so the price is rounded up to the next $500 first.

Maryland law presumes the buyer and seller share all three equally, unless the contract says otherwise. First-time buyers are the main exception. When each buyer has never owned a home in Maryland as a main residence and will live in this one, the state charges only 0.25% of the price, paid entirely by the seller. The county transfer and recordation taxes also move to the seller, unless the contract expressly puts them on the buyer. A buyer who is only a co-signer or guarantor on the loan, and will not live in the home, does not need to qualify. Each buyer must sign a statement under oath. Many contract forms change the default split, so read yours.

The buyer’s new mortgage does not usually add recordation tax. The purchase loan’s deed of trust is exempt when it states that it secures the purchase money, is signed within 30 days of the deed and is recorded within 30 days after the deed is recorded.

Who pays the other costs is also set by the contract. In a typical Maryland purchase, the buyer pays the lender’s charges, the fees to record the deed and deed of trust, and title insurance. A lender will generally require a lender’s policy. An owner’s policy is optional in Maryland, and its premium is paid once, at settlement. The seller pays off any mortgage and other liens, and the commission set by the listing agreement. Property tax and HOA dues are usually adjusted between buyer and seller as of the settlement date, and water and sewer charges are settled from a final figure from the provider (see below).

A worked example at the county median

Take the county’s median sale price for owner-occupied homes, $473,000. At that price:

Tax	Amount
State transfer tax	$2,365
County transfer tax	$6,622
Recordation tax	$2,601.50
Total	$11,588.50

With an equal split, buyer and seller each pay $5,794.25. For a qualifying first-time buyer whose contract keeps the default, the state transfer tax drops to $1,182.50, and the seller pays it along with the county transfer tax and the recordation tax.

Type your own price into the calculator on our Prince George’s County page to see figures for your deal. They cover government taxes only; for title insurance and fees as well, use our instant quote. The county-wide detail is in our Prince George’s County closing costs guide, and the first-time buyer rules have their own guide.

City of Bowie property tax

Bowie is an incorporated city, so homes inside its limits are taxed by three governments. For FY2027 (July 1, 2026 - June 30, 2027), the rates per $100 of assessed value are $0.58 to the city, $0.878 to the county and $0.112 to the state. The county’s part inside the city is lower than the $1.00 per $100 general county rate paid outside any city or town. Tax bills can carry other charges on top of these rates, so settlement figures should come from the actual bill, not a rate table.

Is the house inside the city? A Bowie mailing address is not proof. Homes outside the city limits pay no city tax, even when they share a Bowie ZIP code. The current tax bill and the state’s SDAT property record show whether the city rate applies. Our guide to which county or town your address is in explains how to check.

The homestead cap works in two layers. The Homestead Tax Credit limits how fast the taxable assessment on an owner’s main home can rise, and each government sets the cap on its own tax. Inside the city, the county part is capped at 3% a year, the city part at 5% a year, and the state part at 10% a year. The credit does not carry over to a buyer, so a seller’s capped bill can understate what the buyer will pay later. The settlement agent must give the buyer the Homestead application at settlement, and SDAT mails another once the deed is on record. More on this in our homestead credit guide for new owners.

Water and sewer: two providers in one city

The City of Bowie runs its own water and sewer system, built in the early 1960s, for a set list of neighborhoods. The list includes Bowie Forest, Buckingham, Kenilworth, Meadowbrook, Rockledge, Somerset, Tulip Grove, Whitehall and Yorktown, among others; Forest Drive gets city water only. Every other home in the city is served by WSSC Water. The city says that, with a few limited exceptions, its system does not expand into newly developing areas, so a newer subdivision is usually on WSSC.

Settlement needs a final water and sewer figure from the right provider, so the seller’s charges are settled and the buyer starts a fresh account. A buyer moving into a city-served neighborhood opens a new account with the City of Bowie Finance Department. Tell us early which provider serves the house, so we ask the right one for the final figure.

Deferred water and sewer charges on newer homes

In some Prince George’s subdivisions, the developer’s cost of the water and sewer lines is passed to owners as a yearly assessment under a recorded covenant or declaration. Maryland’s required notice describes it as a contract obligation between the owner and whoever holds the assessment, not a county fee, and it can run for years.

Maryland law sets a rule for the initial sale of such a home in Prince George’s County. The contract must disclose:

• that the charge exists and its yearly amount
• roughly how many payments are left, and the remaining amount with interest
• the name and address of whoever most recently collected it, and the interest rate
• the estimated payoff amount, and that it can be paid off without a prepayment penalty

The charge cannot be spread over more than 20 years after that initial sale. If the disclosure is left out, the law gives the buyer remedies against the seller, including the right to cancel without penalty if the problem comes to light before settlement.

On a resale, a different rule applies. Where a home on public water or sewer carries deferred charges set by a recorded covenant or declaration, the contract must include a notice of the charge, such as its yearly amount and who collects it. If the notice is missing, the buyer may be able to cancel in writing before settlement, and the law gives the buyer other remedies against the seller. Because the charge rests on a recorded covenant, it can also show up in the title search. Ask the seller for the latest bill and settle in the contract whether it will be paid off at settlement or taken over.

A similar Prince George’s rule covers development impact fees. Where one has been imposed, the contract must give notice of it, the total fee and the amount still unpaid.

Title points we check on Bowie homes

Estates. When a home was in the name of an owner who has died, the estate usually has to be opened with the Register of Wills, and the personal representative signs the deed. Allow time for this before settlement. Inheritance tax may also be due, depending on who inherits. Estate sales are part of our deeds and family transfers work.

Additions, fences and old surveys. Decks, sheds and fences added over the years do not always respect the lot lines or recorded easements on the plat. A survey shows whether anything crosses one.

Well and septic. For a home on a private well or septic system, the lender may ask for a water test or a septic inspection, and these take time to schedule. Book them early in the contract period.

Required contract notices. Maryland law requires every Bowie sales contract to carry two notices: one on the Chesapeake and Atlantic Coastal Bays critical area, and one saying the home may be near a military installation with flight, munitions or other noisy operations. As the notice puts it, the critical area generally covers land and water within 1,000 feet beyond the landward edge of tidal wetlands, the Bay and its tidal tributaries. The notice is in every contract; a critical area map shows whether a particular lot is inside it.

Out-of-state sellers. When the seller is not a Maryland resident, Maryland tax is withheld at settlement: 8.75% for an individual or 8.25% for a business entity, of the net proceeds actually paid to the seller. No withholding applies if the seller certifies under penalty of perjury that the home was the seller’s principal residence, or brings a Comptroller certificate showing that less or nothing is due. Let us know early, so the certification or the certificate is ready by settlement.

How Maryland First Title helps

Our attorneys have run title and escrow work in Maryland since 1994. When a Bowie search turns up a deferred water charge, an old covenant or an open estate, an attorney can explain what it means and work to resolve it before settlement day. An attorney settlement agent can travel to you in Bowie at no extra cost, or host you at our office at 306 Crain Hwy N in Glen Burnie, with weekend and after-hours times by appointment. We can also hold meetings online.

We search the title, issue lender’s and owner’s policies backed by Stewart Title, hold the funds in escrow, prepare the deed and send it for recording. Our residential settlement service covers a standard Bowie purchase. If you are selling or buying without an agent, see for sale by owner support and buying without an agent. To learn what an owner’s policy protects, read why title insurance matters.