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Prince George's County, MD Short-Term Rentals: Extended Home Share (2026)

Light Restrictions
Compiled from the official code textEditor Martyn O'NeillLast verified August 2026

Key Facts

Governing section
PG County Code § 5-175.10
Enacted by
CB-37-2020
Effect
Full exemption from STR licensing
Applies to
Settlement Occupancy Agreements only
STR definition it interacts with
§ 5-174(l), under-31-day rentals

Summary

Prince George's County exempts settlement occupancy arrangements from its short-term rental licensing rules entirely. When a buyer or seller of a home enters a formal Settlement Occupancy Agreement to stay in the property before or after closing, no short-term rental license is required for that extended stay.

These county ordinances apply to unincorporated areas of Prince George's County. Incorporated cities within the county may have their own rules that take precedence over county-level regulations.

Notwithstanding other provisions of the Prince George's County Code, short-term rental licensing requirements within Prince George's County, Maryland shall not restrict or apply when a buyer or seller of real property enters into a Settlement Occupancy Agreement and shall be exempt from the licensing requirements set forth in this Division.

View official code

Official source re-checked September 7, 2026: no newer edition of the code had been published (publisher’s edition: Code of Ordinances: Supplement 2026 Update 2).

Full Breakdown

Sec. 10 of the County Code, titled Exemptions, states that the short-term rental licensing requirements found throughout Division 8 of Subtitle 5 do not restrict or apply when a buyer or seller of real property enters into a Settlement Occupancy Agreement. This is a narrow but complete carve-out: rather than a longer duration tier within the license itself, it removes the licensing requirement altogether for that specific occupancy. Settlement Occupancy Agreements are the standard real-estate mechanism that lets a seller remain in the home for a set period after closing, or lets a buyer move in before closing, typically while financing or moving logistics are finalized.

Without this exemption, such an arrangement could otherwise be read to fall within the Division's broad definition of a short-term rental at Sec. 5-174(l), a dwelling occupied by a transient guest for fewer than 31 consecutive days in exchange for compensation, which would trigger the licensing, insurance, smoke/carbon-monoxide-detector, and neighbor-notice requirements that apply to every other Division 8 host. Because the exemption in Sec. 10 was added by CB-37-2020, later than the Division's original 2018 enactment, it reflects a deliberate legislative decision to keep ordinary real-estate settlement logistics outside the short-term rental licensing scheme, distinct from the Division's 30/90/180-day duration tiers that continue to apply to every licensed rental.

Violations & Fines

Because Sec. 5-175.10 exempts settlement occupancy arrangements outright, no short-term rental license, fee, or Division 8 penalty applies to that occupancy. A buyer or seller who is not actually operating under a bona fide Settlement Occupancy Agreement, however, cannot use this exemption to avoid the licensing and fine structure in Sec. 5-175.06 and Sec. 5-175.07, which impose $1,000-per-violation civil fines on unlicensed short-term rental activity.

Frequently Asked Questions

Do I need a short-term rental license if I stay in my old home after closing?
Not if you have a formal Settlement Occupancy Agreement with the buyer. Sec. 5-175.10 exempts that arrangement from the County's short-term rental licensing requirements entirely.
Does this exemption let a buyer move in early without any paperwork?
No. The exemption only applies to a genuine Settlement Occupancy Agreement between the buyer and seller; it does not create a general license-free category for short stays outside a real estate settlement.
When was this exemption added to the County Code?
Sec. 5-175.10 was added by CB-37-2020, after the short-term rental licensing Division was first enacted in 2018 under CB-11-2018.

Sources & Official References

Other rules in Prince George's County

All Prince George's County rules

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