How to transfer property from personal name to LLC

Question

Hi BP Community,

I purchased a SFH in Michigan a few years ago in my personal name before forming an LLC. I recently got approval from the mortgage company to transfer ownership of the property to my LLC. How do I do this though? Do I need a quick claim deed and/or lawyer? Can someone walk me through the steps?

Chris Seveney · Answer

@Adelaide Ning

Why are you doing this? Having it in a LLC adds expenses to you for what benefit?

You are most likely not getting any asset protection by transferring it at a non arms length transaction meaning your LLC is not buying it (recommend asking an attorney)

Save your $ and get a good insurance policy.

Randall Alan · Answer

@Adelaide Ning

Yes, a quit-claim deed will do it.  I would check with your local title company.  Lawyers can definitely do what you want, but typically a title company can too and it may be cheaper.  Check both and go with the best rate.  It is a 1 page standard document that either can probably handle.

Randy

Olia Fogel · Answer

@Adelaide Ning If you are looking for anonymity, then I would recommend using a combination of an LLC and a land trust. First you'll create an anonymous land trust (this should be drafted by an attorney), make your LLC a beneficiary of the land trust, and then transfer the property into the land trust by a deed. This also helps with transfer taxes.

Clark Peterson · Answer

Hi @Adelaide Ning, I would only place the property into an LLC if you are forming a partnership around the property as an investment. In that case, an LLC provides a tremendous amount of flexibility to manage potential future changes (adding or removing members/owners, etc). You've already cleared this with your lender it sounds like, which is great to avoid an issues with your lender (i.e., due on sale clauses, etc). The other thing to watch out for is transfer taxes, which are generally applied at the local or state level, though there are generally healthy exemptions. Other commentors have already addressed their recommendations with regard to the process, but I would reiterate that use of a local title company is probably best, just to be on the safe side. Though many find a quit claim deed to be pretty simple to handle using services like https://directdeeds.com/. Good luck!

Steve Vaughan · Answer

Agree.  What for? It will be plain as day that you own it.

CA dept of rev will now expect an annual $800 business fee. Sweet!

Make sure your title insurance will still be valid and let your landlord insurance carrier know as well.   Nothing like "asset protection" with invalid insurance.

Danny Thai · Answer

https://directdeeds.com/

I've used them before and was in similar situation. though i'm based out of las vegas, but you can give them a call to ensure they have other branches in ca or any referrals

Brady Ferguson · Answer

I would get in contact with an attorney or a local title company just to make sure nothing slips through the cracks!

Konstantin Ginzburg · Answer

I did this with the title company I had closed my property's with. It was a simple procedure that just required signing articles of transfer and paying the title company for their time. It took less than an hour to complete. I would imagine most real estate lawyers would be able to do this for you as well.

Eliott Elias · Answer

A lawyer or title company can do this.

How to transfer property from personal name to LLC

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