Understanding Mortgage Payments and Property Ownership in Maryland
Detailed Answer
Paying a mortgage does not automatically give you legal title to the property in Maryland. The person whose name appears on the deed holds legal ownership. A mortgage secures the loan; it does not transfer ownership.
Legal Title vs. Equitable Interest
Maryland law recognizes two concepts: legal title (the deed holder) and equitable interest (a right to benefit from the property). Simply making mortgage payments without being on the deed generally does not create an equitable interest. Courts may impose a resulting trust or constructive trust only when there’s clear proof of an agreement or when one party’s contributions to purchase or improvement create an injustice if the other party keeps full ownership.
Requirements for Conveyance
Under Maryland Code, Real Property §3-103, a grantor must deliver a written deed to convey legal title. Without a deed or recorded document, payment alone cannot transfer ownership: Md. Code, Real Prop. §3-103.
Mortgage Defined
A mortgage in Maryland is a security instrument that creates a lien on the property. It does not alter deed ownership. See definitions: Md. Code, Real Prop. §7-101.
Possible Equitable Claims
If you can show you paid part of the purchase price or improved the property under an express agreement, a court may recognize an equitable interest. You must prove:
- There was an agreement—written or clearly documented—that you would receive an ownership share.
- Your payments significantly contributed to purchase or improvement costs.
- It would be unjust for the deed holder to keep full title without compensating you.
If you meet these elements, you might file a suit for a constructive trust or partition. Courts will examine documentation—bank records, emails, text messages—and any shared understanding of ownership.
Helpful Hints
- Always get any ownership agreement in writing and recorded.
- Keep detailed records of all payments you make toward the mortgage or improvements.
- Consult a qualified Maryland real estate attorney before filing any claim.
- Check county land records to confirm whose name appears on the deed.
- Consider mediation to resolve co-ownership or payment disputes quickly.
Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult a licensed attorney in Maryland to discuss your specific situation.