Quit Claim Deed Consequences with an LLC????

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.

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


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