Prince George's County, MD Short-Term Rentals: Extended Home Share (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.
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.
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?
Does this exemption let a buyer move in early without any paperwork?
When was this exemption added to the County Code?
Sources & Official References
Other rules in Prince George's County
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