Changing deed from LLC to personal back to LLC to get financing

4 Replies

Duplex in Delaware currently in an LLC, but the owner of the LLC is a holding company. My wife and I are the only members of the holding company. We want to refinance in our own names, then transfer it back to the current LLC. We know we have to transfer ownership via a quit claim deed. The transfer forms are fairly simple.

The questions are what expenses will we incur to do this?

Approximately how much are recording fees for the transfer with the county?

Are these transfers taxable events?

Would there be a transfer tax? If so, approximately how much would we have to pay?

I can’t speak to the other questions, but they definitely could be taxable events but not in the way you may think. 

In my area, taxes for a home are unlocked for the first year of new ownership which brings them up to current market value, then locked after that first year. After which, they can only raise a specified percentage. Transferring via quit claim opens me up to unlocking my property taxes for another year. 

Best advice I could give, call your local tax assessor and ask them what happens when a property is QCD-ed. Only they are going to have those answers, as it’s a county by county law and could change if you go 10 miles to the east (so to speak)

Originally posted by @Carmelo Pollicina :

Duplex in Delaware currently in an LLC, but the owner of the LLC is a holding company. My wife and I are the only members of the holding company. We want to refinance in our own names, then transfer it back to the current LLC. We know we have to transfer ownership via a quit claim deed. The transfer forms are fairly simple.

The questions are what expenses will we incur to do this?

Approximately how much are recording fees for the transfer with the county?

Are these transfers taxable events?

Would there be a transfer tax? If so, approximately how much would we have to pay?

The escrow company that is doing your refinance will be able to do all of this for you during the transaction. Just make it clear what you need. This will avoid additional fees as it will most likely be included in the transaction. At least that's how it's done here in California. I don't see it being any different but ask your loan officer to find out from the escrow officer that they use.

I hope this helps and have a great day.


@Carmelo Pollicina why have the property in an LLC if you're going to have the mortgage in your name?

I dont think Delaware has transfer taxes for quit claims so you just pay the filing fee 2x. Probably a few hundred buck each, at most.