Transfer Property To An LLC
I am one of three investors who purchased rental property together. We wish to transfer ownership from my name into an LLC that we have formed for investment purposes. How is that done?
Thank you.
Jan
Your attorney has to do a quit claim for the deeds
If you know it has clear title, a warranty deed looks better to the lenders (if you have financing)
You don't have to be an attorney to do a quit-claim or warranty deed, you might enlist the help for your first one though to fully understand the process.
Ray,
Thank you for this information. I know for a fact the property has a clear title, so your email gives tells me how best to proceed.
Jan
A quit claim deed is SO EASY to do. DON"T pay an attny to do it. I think you can download a form of this website, then go to your credit union and have them notarize it for free. Piece of cake!
josh
Josh,
Thank you so much!!
Jan
Do builders selling hundreds of new homes to buyers in your State use a quit claim deed to transfer ownership on all those properties? Not likely. Use whatever deed is used in your State for new home sales. I can assure you that isn't a quit claim deed. For instance in Nevada that is a "Grant, Bargain and Sale Deed" This is just as simple to fill out and is not a generic document.
But what about the mortgage, do you keep that in your name personally, or transfer that to the LLC? I tried to transfer it to he LLC today, but the mortgage company does not allow it?
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On 2004-09-27 14:18, meddac wrote:
Your attorney has to do a quit claim for the deeds
[/quote]
It doesn't matter what you want to do with regards to the loan. The bank won't do it. The bank made a loan to you personally, not a company. No bank will simply change the loan documents to a company like the new LLC you’re referring to. The LLC has no credit history, no history generating income, etc. Businesses that obtain loans go through a similar loan process as you went through on your personal loan, except it’s even stricter because in the event of default or foreclosure they would be dealing with an LLC which really does have significant asset protection, unlike an individual. Don’t even mention it to the bank.