Canadians! Transferring a property to an LLC?

12 Replies

For instance, for my first purchase, if I wanted to buy a duplex would I then, at any point, be able to transfer that duplex to an LLC if purchased with a mortgage? And how soon?

If not, what would be the best way to protect myself and the asset if a tenant were to sue? Would insurance be enough

Is this an LLC in the US?

Rental property in US or Canada?

Canadians have some rules for entities on properties in the US

@Natalie Kolodij

Sorry, i forgot to mention that it would be in BC, Canada. I'm just wondering how i would go about protecting myself if someone were to sue. If there's no such thing as an LLC in Canada, would a C Corp be the way to go? or would insurance be enough?

Originally posted by @Hai Loc :
Originally posted by @Nicholas Whiteside:

@Hai Loc

Thank you. Is this relevant for buy and hold in Canada?

 You can use a corporation as long as you are paying cash for the property. 

 Hal:  You can finance properties held in a corporation.   If it is a residential property,  lenders are going to want a personal guarantee, most probably from all shareholders.

@Roy N.

I am aware of that

This conversation was extended further back

@Nicholas Whiteside

Asked if you can purchase a property under under your personal name then transfer to LLC

Then asks if that is applicable in Canada

You definitely can get financing for your corp but your corp will likely have to be on the offer and not your personally name. Lenders I dealt with are pretty strict with financing a company that is not on the offer..

Originally posted by @Hai Loc :

@Roy N.

I am aware of that

This conversation was extended further back

@Nicholas Whiteside

Asked if you can purchase a property under under your personal name then transfer to LLC

Then asks if that is applicable in Canada

You definitely can get financing for your corp but your corp will likely have to be on the offer and not your personally name. Lenders I dealt with are pretty strict with financing a company that is not on the offer..

It is pretty straightforward to execute a change of assignment on the APS.  We have never had an issue with a lender when transferring a property being purchased into a corporation we control.   Obviously, you need to provide the lender with the necessary corporate documentation and make your intention clear.

To make things even more obvious upfront, we generally make offers inclusive of "and/or assigns" on the "buyers" line.