can you use a quick claim deed to transfer property from a

javierarreguin · Joined: 27 Jan 2008 Posts: 1 1.34 Dollars($)

A group of friends and I are going to put together some money in hopes of purchasing a property or two in Chicago. We would like to form a partnership or LLC and have the property in the LLC's name. However, we've been told that we have to put 20% down, which we don't want to do. We would rather use that money to fix the place up or just have for emergency uses. Would the quit claim deed allow us to purchase the property under one person's name and later transfer it to the LLC? And would that transfer financial responsibility from the one person to the LLC as well?

livinginnky · Posted: Sun Jan 27, 2008 10:43 am Post subject:

Yes but do research first on the mortgage you choose. You might not have the right to transfer ownership to the LLC. It will be up to the lender. And to that end the responsibility does not change to the LLC and is why the lender typically won't allow the transfer. What happens is the lender may have a "due on sale" clause which will apply whether you sell or simply transfer. The "clause" will force the sale or immediate payoff of the mortgage if the property is sold or transferred.

Not to say you won't find these loans available but you will either have to pay one or more of the following... higher rate, higher down payment, etc.

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