Does transferring title trigger sales and recordation tax?

[YiBing T.]

Hello BP

My parents are retired, have a few rentals that we are trying to do a refinance on, but their debt to income is too high. I am planning to either add my name to the title or transfer the property to myself and then refinance. We both live in Maryland. Does this transferring trigger any transfer and recordation tax or any other fee or taxes? After the refinance, planning to feed the house to an LLC. Thanks a bunch

[Tyler Gibson]

@YiBing T. I don't see this working out the way you are thinking. Mortgages typically have legal language that state if the title is transferred the entire balance of the loan is due(due on sale clause). This means that transferring them to your name would cause this action. I would think it would be easier for you to outright purchase them from your parents that way you are qualifying for the loan. However when you try and put them in the LLC it could trigger the due on sale clause. Have you asked the lender about you being a co-borrower on the loans to try and refinance?