Real Estate Investor · Bentonville, AR · Member since 2011 · 8 posts · 5 votes
Hi,
I purchased a duplex awhile back prior to creating my LLC and would like to transfer title of to it. I originally set up a DBA along with a bank account under that name and have been making payments out of that account for the last 5 years.
Understanding there is the threat that the mortgage company could call the note (due on sale), how do I transfer ownership of the property to my company? Do I have to use a title company to do this?
Hopefully some one more experienced than me can respond, but from my research, you could use a simple "quit-claim deed". I'm not sure if there would be any benefit to using a slightly more complex warranty deed in this situation or not.
You are correct about the issue with the due on sale concern -- I always worry about that, though many here on BP do not.
As to your question, unless state law requires a title company be involved, you can do it yourself. Draw up a deed transfering the property from the current owner (you) to the new owner (your LLC).
If you do not know how to do this, I would seek the help of a local attorney or a title company so that the document is correct for your area - it should not be expensive. There may be on-line forms that can be used also.
However, I would not recommend a Quit Claim Deed -- I would use a Special Warranty Deed (may be a different name in Arkansas). A quit claim can sometimes create issues with title companies when trying to sell the property later and do not really make it easier.