how do you change a property over from your personal name to business name?

8 Replies

can someone help me out? is it hard is it easy? whats the best way to do it? how long does it take? etc...

The easiest way is to simply deed the property into a trust that names your company as the beneficiary.

You will have to execute a deed that complies with all of the legal requirements for the transfer of real property in your jurisdiction. You generally would not use a warranty deed for this type of transaction, but rather a quitclaim deed. No one can give you proper advice without reviewing all of the documents and facts associated with your Property. You should find an attorney to handle this for a low flat rate. This is not legal advice, just general information. Good luck!

Be careful, if you have loans in your own name, they may have the right to accelerate your loan (i.e. force you to pay it all back immediately) if you quitclaim to another entity. Make sure you get written approval before doing this. Usually it isn't a problem as long as you keep paying the loan, but I would be nervous that at some point they start getting aggressive about this (say if interest rates went to 7% and they see it as a way to force you to refi). Not saying it will happen, but it could.

@Hal Thompson  is referring to the Due on Sale clause, which is triggered a property's ownership is transferred to an entity or individual not named as a guarantee on the mortgage.

This is governed by the Garn-St Germaine act.

You can transfer the property into a living trust, which names your company as the beneficiary.  So long as you are an owner of the company, and therefore maintain a beneficial interest in the property - via your interest in the company in this case - AND do NOT give up your right to occupy the property, the Due on Sale clause is NOT triggered by this action.

Using a trust for the transfer of the title give you a great deal of flexibility.  Namely, you create the trust, retitle the property into the name of the trust.  You can then change or adjust the beneficiary of the trust at any time, as many times as you want, without ever having to retitle the property.

(This isn't legal advice.)

Thank you @Hattie Dizmond, you have clarified a question I have had as well.  Sorry for a noob question, what do you mean by not giving up your right to occupy the property?  What would cause this?

@Anna Shaver  Most of your standard purchase contracts include a possession date & clause indicating when the seller must have vacated the property, which generally is at closing, unless a temporary lease is included or a other concessions are made.

Basically...it's just a way to say, hey, if you sold the property to someone else we can call the note due.

Please, just remember, no one can guarantee you it won't happen, but banks rarely call notes based upon the Due on Sale clause.  Banks don't want to own more property than they already own from the subprime crisis.  They also don't want to turn a performing asset into a non-performing one.  Listen to podcast #2 with Karen Rittenhouse.  She's done over 100 subject to deals and has never had a loan called as a result of the Due on Sale clause.

Thank you @Hattie Dizmond  I will check out the podcast now. So, as long as I am not selling it I should be fine.

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