Posted on: 19th Feb, 2007 03:46 pm
I own few rental properties and 40 acres of citrus grove. I create a LLC and want to transfer all my rental properties and lands to the LLC in order to reduce liability. What is the best way to do so? How does it affect mortagages and rights of my wife?
you can create a quit claim deed to transfer the rental properties in the name of the llc you have created. you will be named the grantor (if the property is in your name only) and name of the llc as the grantee.
about any existing mortgage over the property you need to contact the lender on whether he will allow the llc to assume the mortgage or require the mortgage to be paid off.
about any existing mortgage over the property you need to contact the lender on whether he will allow the llc to assume the mortgage or require the mortgage to be paid off.
Thanks a bunch.
Hi Pcasimir,
"How does it affect mortagages and rights of my wife?"
After property is transferred, LLC will be its owner instead of you and your wife.
"How does it affect mortagages and rights of my wife?"
After property is transferred, LLC will be its owner instead of you and your wife.
Hi Pcasimir,
I guess you have mortgages against some of the properties and that is why you cannot use a grant deed which ensures title to the property is free from liens. As your property is having mortgage against it, therefore you can use a quitclaim deed in order to transfer it to your LLC.
On account of the transfer, your mortgage will remain unaffected. You will have the same obligation to pay the loans in full.
Thanks,
Sara
I guess you have mortgages against some of the properties and that is why you cannot use a grant deed which ensures title to the property is free from liens. As your property is having mortgage against it, therefore you can use a quitclaim deed in order to transfer it to your LLC.
On account of the transfer, your mortgage will remain unaffected. You will have the same obligation to pay the loans in full.
Thanks,
Sara