Transferring title to llc - quit claim deed

[Umair Iqbal]

Hello fellow Real Estate enthusiasts, I am closing on a small multi family 4 plex unit by Dec 7th. I wanted to check in and see if someone can help or advise on how to go about transferring the title into an llc soon after. Any help or suggestion provided is valuable and appreciated. Thanks Umair

[Stanley Bronstein]

@Umair Iqbal I never recommend using quitclaims to transfer title in your type of scenario.  I would use a Special Warranty Deed, so that you minimize the risk of losing your title insurance coverage as @Matthew McNeil suggests in the previous post.

Either way (quitclaim deed or special warranty deed), you still run the risk of your lender exercising their due on sale clause and calling your loan.

For these reasons, I never recommend to a client that they transfer the title to their LLC without FIRST obtaining the written consent of their lender. That usually ends the discussion, as the lender isn't interested.