Legal Question in Real Estate Law in Maryland

Re: Tranferring property to parents but remaining on mortgage

Legally, that would be a violation of the terms of your mortgage, because there is a clause which says that if you transfer the property, the balance of the mortgage becomes due. As a practical matter, as long as the loan is current, the lender probably won't do anything about it, and probably won't even find out.

But when you do this, there could be tax implications. And even though I'm sure you trust your parents, they could legally sell the property and leave you stuck with the mortgage. (I assume your plan is to transfer the entire property to them, as opposed to simply adding them to the title.) Or if you want to sell the property and they don't, they could stop you. Also, if one or both of them is sued and has a judgment or tax lien filed against them, it will encumber the property.