The disposal of State-owned property is governed by Transportation Article §8-309 and State Finance & Procurement Article §10-305 of the Annotated Code of Maryland. These properties are typically acquired by SHA for a Transportation purpose such as the construction or widening of roads. The premise of the above statutes is to return unneeded land back to the tax rolls, and make that land available for County/ Municipality or public use.

The general process for disposing extra land is as follows:

• Upon initial inquiry, Real Estate staff will send out an Internal Clearance to various engineering offices to determine if an extra land parcel has disposal potential. SHA will then make a determination as to whether or not to declare the parcel excess. In some cases, it may be retained for wetland mitigation or a future roadway project.


• If the land Is deemed excess, it will move on to the Modal, County and State Clearinghouse processes. The Modal clearance allows MDOT's modal units to acquire for their needs, whereas County and State Clearinghouse allow the local jurisdictions an opportunity to acquire for a public purpose. An independent appraisal is usually procured at this point to determine market value.


• If the property is determined to be a standalone buildable lot, it will go through an additional clearance known as Prior Owner. In this case, the former owner, heirs, or assigns (from which SHA acquired the property) have a right to re-purchase. The prior owner must exercise their rights within eight months after ORED provides notice that the land is available. Once the Notice has expired or a waiver of rights received, RES will proceed with preparing the property for a public auction.


• If the appraisal determines that the property is landlocked, SHA can negotiate a sale with the adjoining owner (based on the appraised value). In the case where there are multiple adjoining owners, it would go through a sealed bid process.