Moving property to LLC

I have an investment property I bought a while back that I had titled in my personal name. I want to move it to my LLC for asset protection and heard I could just use a Quit Claim deed. Is this the best approach? When I bought it, I had a full title search done, title insurance, etc., so would it better just to write up a Warranty Deed instead? Wouldn’t a Warranty Deed look better later if I go to sell it?

warranty deed.

Similar question here, but regarding taxes.

I talked to the tax office and I can’t just quit claim property like I would to a person for just 10.00. They say for me to quit claim, I would have to pay taxes on the fair market value. This doesnt make sense because isn’t a company just like a separte entity and I just want to quit claim to the LLC?

I read somewhere on the internet that I can do it without taxes, but it’ll have to be something like a sole LLC, which I am… so question is how do I do that?


Will this trigger DOS clause? How will you handl your lender if you transffer the property to LLC? I have one that I need to do but it isn’t clear to me yet what is all involved.

May be some accountants or RE lawyers can help us out…


any violation of a DOS clause will be handled soley at the discretion of the lender. They may “accellerate” the loan or not. it is up to them.

quitclaim doesn’t transfer anything. it is simply relinquishing any rights (quitting the claim) you have to the property. you should always use a warranty or general deed to transfer property. there should be no other taxes due than if you were transferring to an individual, usually a filing fee.

it technically violates the DOSC, but as long as the loan is performing I have never heard of this actually happening.

I do not have any mortgages on this property, so it is not in consideration.

So let me get this straight, if I want to transfer property that has no mortgage to an LLC, I should use a general deed or warranty deed to transfer the property and I don’t have to pay taxes? this LLC was formed solely so that i’ll have protection etc .etc.

if you take personal property and “put it in the name of LLC” - there will be tax implications, as this constitutes a contribution of property.

consult your CPA first.

And to the other point - if you have a mortgage on a property and you quit claim the deed - yes that is a violation of DOSC - absolutely.

think about it. doing that, effects title and the banks security of such insurance that was paid when you purchased the home with their loaned money.

i would NEVER do this. i don’t care what anyone says, UNLESS i got it in writing from the bank - signed by someone at the bank that has the authority to make such a decision that this or any other creative financing/asset protection technique is okay.

additionally, if you transfer deed to LLC, make sure you have all parties that are associated with your LLC (members), there to sign that bad boy. and also, make sure your wife or anyone else who is on the deed currently, to sign off on the transaction - you don’t want any blemishes on it that would “cloud” the title in the event LLC decides to sell it.

Consult a GOOD attorney.