Transfering SFR title to LLC

[Alex Malone]

What's the best way to transfer a property i fully own (no mortgage) into FL multimember LLC? Quit claim deed or warranty deed? Are there drawbacks to one over the other, is there even difference at all in my case?

[Sara Pete]

When you purchased your property, you most likely received a warranty deed that included a guarantee that the title was good and free of any claims or interests by third parties. A warranty deed passes that guarantee on to your LLC.

If you transfer title through a quitclaim deed, you are simply saying that you are passing any interest you might have in the property to your LLC. The quitclaim deed doesn't guarantee that the title is good, or even that you own the property.

Because of the protection they provide, warranty deeds are typically used to transfer property between unrelated parties. Many people use quitclaim deeds, but some prefer to use a warranty deed because it gives the LLC some remedy if there is a title problem and it preserves the chain of title to the property.