Help... how to transfer ownership when buying out a partner
Hi BP... I am seeking advice regarding title transfer when buying out a partner. I have a partnership with another investor where we own a 3-plex in Riverside County, California. I want to buy him out and we agreed on a price. Should I do this with a quitclaim deed? Is it okay to avoid escrow? Can I avoid reassessment by the county? We bought it in 2010 with cash and it went through escrow with title insurance at that time. Since then, we put a mortgage on it which I plan to keep in place. Is title insurance necessary? I am thinking we can simply use a quitclaim deed in exchange for cash. I am being cautious because I don't want to have title problems later and I don't want the county to reassess. Your advice would be appreciated.
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My 2 cents. I like using LLCs for partnership activities in my state because I can buy out another member without any property holding issues. LLC membership interests in NC (and I suspect most other states) are personal property. Outside of SOS filings, no one knows or cares the makeup of our membership.