Quit Claim Deed for Investment Property

Guest 0.10 Dollars($)

Hi,

I purchased a property in my name about 8 months ago when I decided to start investing in real estate. I have since set-up an LLC for my real estate business and I want to take this property out of my name and put it in my business name. Can I just fill out a Quit Claim Deed form and bring it to my county clerk's office? If I do this, will the mortgage company consider it a sale and enforce the due on sale clause?

Thanks.

blue · Posted: Thu Jan 10, 2008 6:55 pm Post subject:

Hi,

Welcome to Mortgagefit discussion board.

You should let the lender know about quitclaim of the investment property to LLC. If you quitclaim without informing the lender, he may consider it a sale and enforce the due on sale clause.

Do let me know if you have any other questions.

Thanks
Blue

jenkin7 · Joined: 04 Jun 2007 Posts: 939 140.80 Dollars($)

Hello Kamila,

Yes, the transfer of the individually owned property to LLC might trigger the due-on-sale clause if you don't have the lender's consent for doing this.

So it will be better if you talk to your lender first and get his written consent.

You may sign a quit claim for the transfer if your lender agrees to it. The quit claim deed has to be notarized and recorded at the County Recorder's Office in order to make it valid.

larry · Joined: 27 Jun 2007 Posts: 3328 473.51 Dollars($)

Hi Kamila,

I agree with Blue and Jenkin above that you will have to take the lender's consent, otherwise may face problem in future. Better consult with your lender and take his permission before you quitclaim your investment property to LLC.

Feel free to ask if you have any further questions.

Best of luck,
Larry

lisascherzer · Joined: 04 Jan 2008 Posts: 755 1.03 Dollars($)

Most lenders won't allow you to deed the property in to an LLC.

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