Aestar – No transfer tax even when Mom transfers property with mortgage to children

Aestar LLC supervises the sale transactions, verifies legal documents, and insures real estate titles.


Aestar LLC is a different title company.  Aestar offers knowledge to protect consumers: buyers and sellers.


The scenario is that a mother owns a non-primary residence, the market value $500,000, in Montgomery County, Maryland.  The unpaid mortgage principal is $280,000. Mon can transfer the title to her children without paying the transfer tax as long as the lender allows her assuming her own mortgage without incurring refinance (new money). Thus, the transfer tax = $0

$0 (State Recordation Tax) +

$0 (State Transfer Tax) +

$0 (County Transfer Tax).


Contact me should you have further questions.


Jonathan Kan, Licensed Title Producer/Notary Public

Aestar LLC

15881-B Crabbs Branch Way, Rockville, MD 20855

C: 240-351-6098   F: 888-501-3060 E: [email protected]

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This column is not legal advice and should not be acted upon without obtaining your own legal counsel.

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Jonathan D. Kan, ESQ. is admitted to practice before the Court of Appeals of Maryland in 2017. Mr. Kan graduated as a Juris Doctor of University of Baltimore School of Law, Maryland, in 2017, concentrating on criminal, trust and estate, and real estate laws. Mr. Kan has published the Aestar Blog since 2015. He co-founded Aestar LLC in 2013. Mr. Kan has been a licensed title producer, settlement agent, and notary public serving the Maryland and Virginia states since 2013.

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