Mark J. Kohler consultation

[Carlos C.]

Hi, 

I'm paying for a 30 minute consultation with an attorney at Mark J. Kohler firm next week and would like to know your experience with this firm. I'm considering restructuring my rentals, the goal is asset protection and anonymity. 

Thanks.

[Mike S.]

Originally posted by @Carlos C.:

Question: Why is preferred to use a warranty deed, instead of a quit claim deed? I understand that it gives you more coverage and it better if you are transfering RE from someone that you don't know... but in my case I will be transferring from myself to my LLC.

Some good answers here: https://www.youtube.com/watch?v=srTDquLh4e8

The issue is not the transfer between you and your LLC but what happened before. If you discover in a few years that your original title had a problem, your LLC has no recourse. Because you did a quit claim deed (ie not giving the LLC any assurance that the title was clear), your LLC can't do anything about it. However if you had done a warranty deed (or a special warranty deed if you still have a mortgage on it) instead, your LLC has a claim against you for the issue on the title, and you in turn can go back to your initial title insurance to fix it.

Some title insurance will allow to transfer the coverage to an LLC that you own 100%, but not all of them do or they may require an additional fee. Better play it safe and use a warranty deed instead.

Also, later on when you sell your property, it will keep the chain of title cleaner for the next title insurance.

Last but not least, a warranty deed does not cost more than a quit claim deed... It is the same recording fee, just different wording on the deed. But I agree with your initial statement that when you sell to yourself, you don't need a NEW title search or NEW title insurance.