Transfer deed to an llc

[Chris Erato]

Hi guys I’m new to Realestate and recently purchased 2 triplex homes in pa. I did the mortgage under my name. I just opened a llc and would like to change the deed to the llc . Can that be done and are there any transfer taxes that would have to be paid ... ?

[Brandon Sturgill]

@Chris Erato congrats on the acquisition. Do the properties have a lien in place (mortgage)?

If yes, one thing to be aware of is the "acceleration clause" (some folks call this due on sale or similar). It's a pretty standard mortgage clause permitting the note holder to accelerate the full note balance if you transfer title while the lien is still in place. Would that happen...99% of the time not. If there is no lien, you're golden.

Either way, we have a preferred attorney at a local title company that drafts all of our legal documents and closes deals...I'm sure there are similar opportunities in your area. As far as transfer tax, this is a local issue...I would confirm with your CPA. 

It's not always a bad thing to hold property in your personal name...LLC's don't really offer that much protection...not as much as people lead on anyway. You could also talk to your insurance agent about a rider or umbrella policy for protection.

Best of luck.