Quit Claim Deed Consequences with an LLC????

[philgoodwinpropertie]

I am buying an SFH from a bank in my personal name with a business partner and trying to obtain purchase money financing from a well known mortgage company. The mortgage broker told me I could close on the loan and the property in our individual names and then quit claim the deed into our LLC the next day.

The property is in PA. Do I need to pay transfer tax on the QCD? I assume it would be 1% to transfer from my name and 1% to transfer into the LLC name.

Secondly, is my title insurance void since I am the name insured individually, not the LLC?

Lastly, I realize I violate the due on sale clause, but this is not a concern since I will pay the bill on time.

[BLL11]

@philgoodwinproperties post:1

The property is in PA. Do I need to pay transfer tax on the QCD? I assume it would be 1% to transfer from my name and 1% to transfer into the LLC name.

yes on both counts and transfer taxes are due if you sell the LLC to avoid the transfer tax.

@philgoodwinproperties post:1

Secondly, is my title insurance void since I am the name insured individually, not the LLC?

yes

@philgoodwinproperties post:1

Lastly, I realize I violate the due on sale clause, but this is not a concern since I will pay the bill on time.

It’s up to the bank, but you are right they probably won’t care as long as the bill is paid.