I have several properties currently in my name. I was wondering what deed is best for transferring rental properties into a LLC?
Quit claim deed
I would lean toward using a warranty deed, as opposed to a quit claim deed, in order for the investor to maintain title insurance. Most title insurance companies will cease to offer insurance if a quit claim deed is used for the transfer as the quit claim deed offers no warranties as to clean title.
Every county requires a warranty deed to be signed by the Grantor (the Investor) and either witnessed, notarized, or both. Therefore, the investor will need the warranty deed in order to execute and record.
The fees to record a Warranty Deed will vary from county to county. To check recording fees, simply visit the website maintained by the County Clerk (Registry of Deeds, Recorder of Deeds, Clerk of Court, etc) and locate the Recording Fees information.
Most counties require additional ancillary documents/forms to be sent in with the Warranty Deed in order for a successful recordation. The documents/forms will vary county by county. The required documents/forms can be found on the website maintained by the County Clerk (Registry of Deeds, Recorder of Deeds, Clerk of Court, etc). Examples include: Transfer affidavits, Preliminary Change of Ownership Reports, Transfer Tax affidavits, etc.
Many people hire an attorney to do this for them. I have found the process of executing property transfers to be one of the more time consuming projects regarding my time spent working with real estate investors, mainly because of these additional county specific requirements. I would encourage you to have a professional do it the first time for you to be sure it is done right. After seeing the process some investors will want to do it themselves to save some money, while others will gladly pay an attorney so they don't have to hassle with it all.
@Scott Smith thank you for the great information.
Hey @Mayi Nelson ,
If you are going to put all of the property in the LLC I can help you out and take the insurance out of your personal name and strictly into the LLC name. Feel free to let me know if I can help you out at all and take something off of your plate.
GOOD LUCK ON YOUR INVESTING CAREER!