Rental Property Investor · Escondido, CA · Member since 2018 · 268 posts · 137 votes
Not sure if this is possible: I am looking for ideas on how to legally add someone (or an LLC) to the title of a property without necessarily having to obtain a new loan.
The background: My partner currently owns a property in his name and is the sole person on title. Going forward, we have arrangements to run the property as a 50/50 partnership. We would most likely hold title in an LLC which we are 50/50 owners of.
Since the terms of the loan my partner already has are good, we are investigating if there is a way to add me to the title (or put the property under the LLC) without obtaining a new loan.
From my limited knowledge and initial reading, it seems like adding a non-family member to title can initiate the acceleration clause where the loan would be due.
Contact the lender and ask if any of that would trigger the due on sales clause, it is not going to hurt to ask questions before doing so and finding out you did something wrong, they may be OK with it or tell you a way to handle it.
Have you looked at options such as a tenants in common? I have not added someone after the fact but I know there are some ways around being added directly to the loan/deed.
Not sure if this is possible: I am looking for ideas on how to legally add someone (or an LLC) to the title of a property without necessarily having to obtain a new loan.
The background: My partner currently owns a property in his name and is the sole person on title. Going forward, we have arrangements to run the property as a 50/50 partnership. We would most likely hold title in an LLC which we are 50/50 owners of.
Since the terms of the loan my partner already has are good, we are investigating if there is a way to add me to the title (or put the property under the LLC) without obtaining a new loan.
From my limited knowledge and initial reading, it seems like adding a non-family member to title can initiate the acceleration clause where the loan would be due.
Any input is appreciated.
Call up the title/escrow company that worked with you when you purchased it. Should be pretty quick and painless. I'm sure they will charge you some fees, so be it.
You could totally DIY this in theory, but if you're asking this question, that would lead me to believe that you specifically may not have the necessary experience/background. Also if you DIY'd it, it would be what title companies call an "uninsured transaction," which can increase the cost of title insurance in the future (lender's title insurance if refi, your buyer's title insurance when you sell, etc).