Real Estate Investor · Member since 2008 · 8 posts · 0 votes
I have formed a new LLC and will be going to closing on a new property. My question is when can I transfer the property from my name into the LLC? what are the steps involved and the cost of each step? What can I expect from the lender in this regard or if the lender will allow? Then if the lender doesn't allow what time frame is applicable to a transfer to LLC?
Any information in this regard is greatly appreciated? Thanks in advance
Besides lender issues, I would also look into insurance issues. I've heard of people transferring title by quit claim (instead of warranty deed) into an LLC and losing the protection of their title insurance. I don't know the details or how legitimate a concern it is, but I would look into it if I were planning an after-purchase title transfer. I've also heard of problems with the fire/etc. insurance types of policies, too. Remember also that corporations and LLCs are governed by state laws, so what's true in one state may not be true in anther.
all i had to do was contact the title company that handled the purchase and sign a quit claim deed. $135. you can do it yourself but I didnt have 3 hours to spend at the county courthouse here.
lender doesnt care.
title insurance is fine.
homeowners insurance had to be switched to a commercial policy, but costs the same.
I'm sure lenders love it. It triggers their option on the Due On Sale clause. They won't call the loan due now, but should interest rates shoot up, they can force it due to help them clear low-interest rates off their books.
Originally posted by "strive for the life":
title insurance is fine.
Fine for whom? You, the LLC or the title company? I hope you got independent legal advice, because I heard the exact opposite from a disinterested attorney.