Transfer title to LLC

Tax, SDIRAs & Cost Segregation
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Transfer title to LLC

Edith Scott
Member since 2018 · 10 posts · 2 votes

Loancare/Lakeview, which holds my mortgage, is telling me that I have to refinance in order to transfer the title from me as an individual to my new LLC, with me as the sole owner. Two reps have told me it's just their policy.
Has anyone else come across this? What are any workarounds?

Thanks in advance!

Edith

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Tom GimerBusiness Member
DMV · Member since 2017 · 3k+ posts · 3k+ votes
3y

Not weighing in on the wisdom of transferring to your LLC, but if you really want to do this simply find a new title company. It's your property and you can do what you want with it. If a transfer to your wholly-owned LLC truly violates the due on sale clause most title companies have a simple release for the borrower to execute confirming they wish to move forward regardless of the consequences.

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  • Tracy Ross
    Member since 2022 · 75 posts · 73 votes
    3y

    Try talking to a title company. If you know the title officer who closed your deal I would call them. You may be able to quit claim the title into your LLC and keep the mortgage in your name. Calling an accountant would be a great avenue as well!

    0Reply
  • Edith Scott
    OP
    Member since 2018 · 10 posts · 2 votes
    3y

    Thanks @Tracy Ross--the title company said they need proof that the lender agrees to it, so that seems to be a deadend. My CPA said to reach out to mortgage company as well.

    Looks like some mortgage companies allow without refinancing, and others like Lakeview/LoanCare do not.

    Appreciate your recommendations.

    Edie

    0Reply
  • Account Closed
    Investor · Odessa, FL · Member since 2021 · 52 posts · 29 votes
    3y

    I'm certainly not the expert, but check with your bank to see if putting your property into a Land Trust avoids the refi.

    1Reply
  • Tom GimerBusiness Member
    DMV · Member since 2017 · 3k+ posts · 3k+ votes
    3y

    Not weighing in on the wisdom of transferring to your LLC, but if you really want to do this simply find a new title company. It's your property and you can do what you want with it. If a transfer to your wholly-owned LLC truly violates the due on sale clause most title companies have a simple release for the borrower to execute confirming they wish to move forward regardless of the consequences.

    Gimer Law516 Reviews
    WebsiteView Page
    1Reply
  • Richard Bechtol
    Attorney · Member since 2022 · 83 posts · 79 votes
    3y

    You may be able to utilize the use of a trust to not trigger the same issue. If you have any additional questions about this method I would be happy to answer these.

    1Reply
  • Kay K.
    Member since 2022 · 29 posts · 2 votes
    3y

    Transferring title won't lead to reassessment of property taxes?

    0Reply
  • Edith Scott
    OP
    Member since 2018 · 10 posts · 2 votes
    3y

    @Kay K.--I'm unsure, as I've never done this and learning every day, every convo or message with someone.
    I'll post my progress for others who may new to the process.

    Thanks for posting.

    0Reply
  • Russell BrazilBusiness Member
    Moderator
    Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
    3y

    If you want to transfer the property to an LLC, youll need to also get a commercial insurance property and refinance to a commercial loan.

    Failing to do those 2 things will make the owner of the property uninsured if the insurance reflects the old owner of the property (you) and will make your LLC easily piercable of you personally hold the mortgage.

    [email protected]301-893-4635Podcast Guest on Show #192
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  • Eliott Elias
    Investor · Austin, TX · Member since 2021 · 9k+ posts · 5k+ votes
    3y

    The lender sees it as a loan going into a business instead of a personal guarantee. They will always want this. 

    1Reply
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