How to move my rental under my LLC- Question

Question

Hello, I am having a hard time in moving my rentals under my LLC. I called the bank and told them that I want to file a Quitclaim deed. They advised me to contact the county and provided the phone number. I asked them after I filled out the paperwork w/ the county what is the process ? When I told them it was for the LLC they didn't like it. Should I just file a quit claim deed first and then go straight to the bank? Do they have to give me permission? Any advice will be greatly appreciated.

Eve Oliver · Answer

@Scott Smith, @Tom MakinenThank you, I appreciate the feedback!!!

Scott Smith · Answer

I'm with Mike on this one. Definitely use a Warranty Deed to preserve your title insurance. If you are struggling with the Due on Sale Clause I generally use the Land Trust to work around the issue - but it is better to have them clarify the problem before actually establishing any solutions.

Feel free to TAG/message me if you are having issues with this stuff. I work with these entities and banks quite often, so I could lay out a quick strategy for you.

Tom Makinen · Answer

Drawback is that the loan might get called back and you might have problems with title insurance....

Eve Oliver · Answer

will do@Mike S.!! I have been moved around so many times but I will look into that. Thank you

Mike S. · Answer

@Eve Oliver

First, do not use a quit claim deed but instead a (special) warranty deed.

Second, I would assume that you have a mortgage if you had to talk to your bank. Depending on your lender and your contract, they may consider that your transfer would trigger the due on sale clause. Do a search on this term here, and you will find many threads explaining the issue and possible solutions to avoid it.

Last, if you are unsure how to do it, I would highly suggest that you contact a lawyer to draft your deed as some states and counties have mandatory specific clauses that need to appear in the deed. Most real estate attorney won’t charge too much for a simple deed without a title search.