Quitclaim to LLC, or Grant Deed to LLC

General Real Estate Investing
1

Hello everyone,
I have a rental house in Phoenix. The loan is restrictive and may call a due on sale clause if I transfer the property to MY LLC, so should I use a Quitclaim Deed to put it in the LLC, or Grant Deed to LLC.

Thanks, Dee

2

You may want to check with an attorney to put the deed in a land trust. DOSC should not be triggered. I am not an attorney. Google “Garn-St Germain Act of 1982”.

3

Thanks Turborocket. It’s funny because I asked my real estate attorney here in California and he said to do a Grant Deed. I called escrow in Phoenix and they said they do not do Grant Deeds, only Warranty Deeds and Quitclaim Deeds.

Should I just go with the Quitclaim Deed. Where can I read up on the differences in each deed by State. Apparently where my property is located, Phoenix AZ they do not use Grant Deeds.

Thanks Turbo!

4

I would keep calling around to different title companies/attorneys in AZ and ask them to explain to you the difference and ask which one to use to move a deed into business entity or a trust. I cannot imagine you are the first one doing it so someone should know. In my state, it would be a quit claim deed. It definitely would not be a warranty deed in this case because the liens are staying in place.

5

Use the Warranty Deed. The Quit Claim deed only does what the name says, it quits any claim that you have to the property. The Warranty Deed is stronger and will not cloud the title the way that a Quit Claim might…

Keith

6

Use a warrenty deed. Thats what my Title compny uses and she is also an investor.