Legal Question in Real Estate Law in Maryland

You can do this, by giving your mom a promissory note and a mortgage (legally known as a deed of trust) just like the mortgage you signed when you bought your house. However, if you don't pay your mother a market rate of interest, there will be tax consequences. You should discuss this with your tax adviser. But her financial adviser is correct that she will lose income if she sells her house on the market and invests the cash proceeds at a rate higher than what she would charge you. You didn't mention where she would be living after selling the house and what expenses would be involved in that.

Yes, this is possible by one of two ways. First is something called a land installment contract where you pay the purchase price over time but the deed isn't transferred right away. The buyer is an "equitable" owner but not on the title until they pay off a specified portion of the purchase price . Second is by deeding with a private mortgage as the other attorney's answer notes.

It is wise to consult with financial advisors and attorneys. The ultimate decision should be based on your specific goals and needs. (for instance is the main goal to earn a high rate of return or is it to give an affordable option to purchase?) You are welcome to contact my firm at 410-216-7000 or call another firm of your choosing. Note that this post does not attempt to create any attorney/client relationship or offer personalized legal advice. Specific facts may affect how the law applies to you.