Info about the Limited Liability Company & Corporation

How Do I Transfer Property to my Real Estate LLC?

If you own real estate in your own name and want to transfer it to a real estate LLC in order to benefit from the limited liability protection afforded by a limited liability company, you will need to transfer the property in accordance with the real estate laws in your state.

This is usually done with a deed.  The most common way to do this when you are both the owner of the property and the owner of the real estate LLC is to use what is known as a quitclaim deed.  A quitclaim deed basically states that you are transferring whatever ownership interests you have in the property to the LLC.

The form of the deed will need to contain specific language that can vary based on your state.  Accordingly, you can seek the help of a local real estate attorney or find a state specific form to use if you do it yourself.  If you cannot find a form, then go to your local county and search the records for actual quitclaim deeds that were filed there.  You should be able to to find several basic forms used.

When you transfer the property to your real estate limited liability company, there may be some fees charged by your locality so call your county for specific fee details.

Your LLC should execute a resolution or consent agreeing to take on ownership of the property.

Finally, one issue that is common in this area is whether there re any issues if the property is subject to a mortgage.  If you are a borrower on a mortgage/deed of trust with a bank for the property, you need ro read your loan documents to see what conditions, limitations or restrictions they may have on the ability to transfer the property to an LLC without paying the loan off.  There is often a clause called a Due on Sale Clause which you should be aware of.If you own 100% of the LLC, there may be ways around this so check with your local real estate attorney for advice.