In Maryland, borrowers have the option of having their property taxes (whether imposed by the State, county, or a municipal corporation) paid by default in semi-annual installments or, by election, in an annual installment (see Md. Code Ann., Tax-Prop. §§ 1-101[aa] & 10-204.3[j] [West 2012]). To elect to have payments made in annual installments, a borrower must provide their escrow account servicer with written direction towards this end.
We will be providing a new “MD Property Tax Installment Directive” (Cx17045) to allow borrowers to indicate their choice of annual or semi-annual installment payments. Because this election is optional, this document will be provided only upon request. Once requested, it will print in Closing packages only if the subject property will be owner occupied and only if property taxes are being escrowed.
The semiannual installment payment selection will be checked if any of the property taxes are marked as semi-annual in the software. If all of the property taxes are marked as annual in the software, the annual installment payment selection will be checked.
This document is now available by request. If you would like Cx17045 included in your applicable Maryland Closing packages, please contact Client Support at 1.800.497.3584.
December 4, 2012