In 2021, a Baltimore property entered the tax-sale system despite a $13,478 tax payment; what did the court say?

A Baltimore homeowner once had to pay more than $13,000. This was toward his property taxes in April 2021. But, his home was still sold at a tax auction. This happened the following month because the city failed to process his payment correctly.

The case later reached the Appellate Court of Maryland and in March 2024 it then upheld a lower court's decision to cancel the sale. It found that the amount still outstanding was below the legal threshold for selling an owner-occupied home in Baltimore city.

The house at 2426 Reisterstown Road in Baltimore was bought by Frederick Williams in 2020. On April 22, 2021, he paid the city $13,478.67 by cheque.


Until May 17, 2021, the city did not cash the cheque. The delay was reportedly linked to staffing problems during the Covid-19 pandemic.

Ultimately, the property remained on the list of homes scheduled for the city's annual tax sale.

Why was the house sold despite the payment?

On May 17, 2021, the city did put the house up for auction.

Williams' payment covered the overdue property taxes. However, $620.71 in other charges remained outstanding after the city allocated part of the payment to the current tax year. It includes miscellaneous bills, rental registration and environmental charges.

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The investor pursued the case

A lower court initially denied Cicada's request in April 2022 to foreclose on the property. It was due to its complaint containing a discrepancy in the amount required to redeem it.

The city later moved to overturn that judgement. The lower court vacated the foreclosure judgement and declared the tax-sale certificate void in December 2022.

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What was the court's decision?

Cicada challenged the decision, but the Appellate Court of Maryland rejected that argument.

The court also found evidence of constructive fraud arising from the city's failure to process the payment correctly.