Using a Quick Claim Deed or Warranty Deed to Transfer property from Personal to LLC

Member since 2024 · 9 posts · 2 votes

I was told that if you purchase a property using a conventional loan (mortgage in your name), that within a month or so after you purchase the property, you can use a Quick Claim Deed or Warranty Deed to transfer the name on the Deed of the property to your LLC. My main reason for wanting to do this is for liability purposes. Any advice on the steps to do this is appreciated. Also, the costs involved. Thanks in advance.

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Greg ScottPro Member

Rental Property Investor · SE Michigan · Member since 2014 · 4k+ posts · 6k+ votes

Warranty Deed - No

Quit Claim Deed - You could do this, but there are many good reasons not to do so. I've also heard some lawyers argue that having the deed in the LLC but the mortgage in your name pierces the corporate veil. If that were true, the LLC is invalidated.

You may want to explore better insurance first.

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Malcomb StapelPro Member
Investor · Topeka, KS · Member since 2020 · 669 posts · 488 votes
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@Ed Hoffman actually, you can transfer it via Quit Claim right there at the closing table before you leave the title company. In Topeka Kansas it costs $35, yours may vary.

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Greg ScottPro Member
Rental Property Investor · SE Michigan · Member since 2014 · 4k+ posts · 6k+ votes
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Warranty Deed - No
Quit Claim Deed - You could do this, but there are many good reasons not to do so. I've also heard some lawyers argue that having the deed in the LLC but the mortgage in your name pierces the corporate veil. If that were true, the LLC is invalidated.
You may want to explore better insurance first.
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Ed Hoffman
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Member since 2024 · 9 posts · 2 votes
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Quote from @Malcomb Stapel:

@Ed Hoffman actually, you can transfer it via Quit Claim right there at the closing table before you leave the title company. In Topeka Kansas it costs $35, yours may vary.

Thanks!
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Ed Hoffman
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Member since 2024 · 9 posts · 2 votes
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Quote from @Greg Scott:

Warranty Deed - No
Quit Claim Deed - You could do this, but there are many good reasons not to do so. I've also heard some lawyers argue that having the deed in the LLC but the mortgage in your name pierces the corporate veil. If that were true, the LLC is invalidated.
You may want to explore better insurance first.

Thanks Greg
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Chris SeveneyBusiness Member
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Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
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@Ed Hoffman
There are tens of thousands of posts on here about this specific topic that I recommend you read
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Ed Hoffman
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Member since 2024 · 9 posts · 2 votes
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Quote from @Chris Seveney:

@Ed Hoffman
There are tens of thousands of posts on here about this specific topic that I recommend you read

Thanks!
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John MorganPro Member
Rental Property Investor · Grand Prairie, TX · Member since 2018 · 2k+ posts · 2k+ votes
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@Ed Hoffman
I did this and moved 6 of them into my LLC with a warranty deed. I regret it now and wish I would have kept them in my personal name. Any attorney can pierce it and show you're behind your LLC. Just get extra liability insurance on them. It's extremely rare to ever get sued for over 1 million.
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Marco Anemone
Bolingbrook Illinois · Member since 2018 · 50 posts · 33 votes
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@John Morgan, unless your net worth is more than 1 million dollars. Then it becomes more and more likely.
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Jonathan Chan
Lender · Clermont, FL · Member since 2020 · 168 posts · 87 votes
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Quote from @Ed Hoffman:

I was told that if you purchase a property using a conventional loan (mortgage in your name), that within a month or so after you purchase the property, you can use a Quick Claim Deed or Warranty Deed to transfer the name on the Deed of the property to your LLC. My main reason for wanting to do this is for liability purposes. Any advice on the steps to do this is appreciated. Also, the costs involved. Thanks in advance.

If you have the WY holding company for your corporate structure, DO NOT just quit claim the house into your LLC. That leaves a paper trail and defeats the purpose of having a WY LLC.
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Ed Hoffman
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Member since 2024 · 9 posts · 2 votes
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Quote from @Greg Scott:

Warranty Deed - No
Quit Claim Deed - You could do this, but there are many good reasons not to do so. I've also heard some lawyers argue that having the deed in the LLC but the mortgage in your name pierces the corporate veil. If that were true, the LLC is invalidated.
You may want to explore better insurance first.

Thanks Greg. Question: What specific Insurance are you referring to?
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Ed Hoffman
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Member since 2024 · 9 posts · 2 votes
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Quote from @John Morgan:

@Ed Hoffman
I did this and moved 6 of them into my LLC with a warranty deed. I regret it now and wish I would have kept them in my personal name. Any attorney can pierce it and show you're behind your LLC. Just get extra liability insurance on them. It's extremely rare to ever get sued for over 1 million.

Thanks John. Question: What specific type of Liability insurance are you referring to? Personal Liability? Umbrella?
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Greg ScottPro Member
Rental Property Investor · SE Michigan · Member since 2014 · 4k+ posts · 6k+ votes
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Quote from @Ed Hoffman:

Thanks Greg. Question: What specific Insurance are you referring to?

I got a $2M umbrella policy out of my homeowners policy. That covered not only the liability from my property to me but also the liability from me to the properties.
The umbrella insurers want to be insurance of last resort so will have you beef up liability on your rent properties. They made me move mine to $500,000, so I had a total of $2.5M coverage. Umbrella insurance is pretty cheap in the scheme of things
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Ed Hoffman
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Member since 2024 · 9 posts · 2 votes
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Quote from @Greg Scott:

Quote from @Ed Hoffman:

Thanks Greg. Question: What specific Insurance are you referring to?

I got a $2M umbrella policy out of my homeowners policy. That covered not only the liability from my property to me but also the liability from me to the properties.
The umbrella insurers want to be insurance of last resort so will have you beef up liability on your rent properties. They made me move mine to $500,000, so I had a total of $2.5M coverage. Umbrella insurance is pretty cheap in the scheme of things

Thank you Greg.
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Ed Hoffman
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Member since 2024 · 9 posts · 2 votes
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Quote from @Greg Scott:

Quote from @Ed Hoffman:

Thanks Greg. Question: What specific Insurance are you referring to?

I got a $2M umbrella policy out of my homeowners policy. That covered not only the liability from my property to me but also the liability from me to the properties.
The umbrella insurers want to be insurance of last resort so will have you beef up liability on your rent properties. They made me move mine to $500,000, so I had a total of $2.5M coverage. Umbrella insurance is pretty cheap in the scheme of things

Hi Greg, I currently have a personal umbrella policy. Will this policy cover my rental property/properties or do I need to get a separate umbrella policy specifically for my rental(s)?
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Greg ScottPro Member
Rental Property Investor · SE Michigan · Member since 2014 · 4k+ posts · 6k+ votes
1y
Quote from @Ed Hoffman:

Quote from @Greg Scott:

Hi Greg, I currently have a personal umbrella policy. Will this policy cover my rental property/properties or do I need to get a separate umbrella policy specifically for my rental(s)?
Add your rentals to the existing umbrella.
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