Switching to an LLC after a property is in contract

8 Replies

Hi folks,

I'm in contract to buy a house in San Francisco for cash and closing will be in about 3 weeks. After the offer was accepted by the seller, we found a partner who is interested in purchasing the property with us. He wants to form an LLC and purchase the property with it. Is this possible since the seller accepted a contract from me, not the LLC? If we try to make the switch before closing, how much would the seller be involved? She chose us out of 20 offers, and I don't want to mess up the deal. Would the seller have to sign a new purchase agreement? If we transfer ownership to the LLC after purchase, we'd have to pay transfer tax. Is that the safest option to avoid losing the contract?

Thank you for your advice!

It should be a simple addendum just ask your agent to request the change name on the contract. it is easy because it is a cash deal good luck

Yep as long as all parties agree, you're golden!  Talk to your realtor about writing up an addendum stating exactly what you want to do. 

Good luck!

Thank you for the replies! It sounds easy enough if we want to ask for the change. The psychology of the deal is still touchy. The trustees were having trouble agreeing on an offer but apparently they liked my family. I'm not sure what was said off the record about our intentions to live in the house, so my request to change to a partnership LLC needs to be worded carefully.

Thanks!

Originally posted by @David Kyo :

Being new and in the area I'd love to hear how you found it and the numbers if you're willing to share.

 Hi David,

We found it on the MLS. It's a fixer that was asking $650K. There were 30+ disclosures out and 20 offers - mostly developers. We offered $850K cash with no contingencies and were chosen with no counter offer. We sold a smaller house a few blocks away about 3 months ago for almost $1.3M, so we believe it's a good deal.