Legal Question in Real Estate Law in Maryland

Re: Buying property/Allowing owners to stay

The transaction is legal, and not rare. One way of handling it would be for the owners to deed you the property, while reserving a life estate. Another possibility is for the owners to deed the property to you outright,with you then leasing the property to the owners. There are a lot of ramifications involved (e.g. insurance, liability,tax, care and upkeep of the property,etc.), so I would suggest you consult an attorney who has an office in or close to the county where you live or the property is located, and not try to handle this yourself.

Re: Buying property/Allowing owners to stay

The agreement as proposed is legal. To effect it, there

must be a contract and other legal documentation filed in the

County where the property is located. I presume that you will be the

owner of the property (all 2 acres) after the last proposed occupant passes.

You could have the entire lot deeded over to you and grant the occupants a life

estate on the parcel they are to live on. Alternatively, you could have the parcel

sub-divided and deeded separately under your ownership, with a life interest recorded for the one plat and a mortage recorded for the other. This later scenerio presents an issue in that you would exentually own two lots rather than one unified lot. This issue may be a benefit or problem depending on your

ultimate intended use of the land. There needs to be some sort of

note for the debt that is to secure the land otherwise it would be a gift. Matters of

inheritance, insurance, taxes, payment and default provisions, and a host of other matters must

be addressed with this transaction.

Do not undertake this matter without the assistance of an attorney.

G. Joseph Holthaus III

(410) 799-9002