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Updated over 2 years ago on . Most recent reply
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Title search when doing an LLC transfer instead of real property
Owner quitclaims property into an LLC. You then buy LLC. I believe this completely avoids the need for a title company -- other than seeing what is on title. Does anyone have suggestions on how to have a title search run without also opening escrow?
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On a very technical basis, you do not need to do a title search or use an intermediary to facilitate a transaction.
I am not a lawyer and this is not legal advice, but technically there could be liens on the property that if the owner quit claimed to the LLC, they are not ensuring are gone. This deal offer very little protection for you and all the protection for the current owner. I would personally not do a deal like this without a Title Search and transactional intermediary, because while the seller might not be shady, they could get away with some really shady stuff with this deal format.