Quit claim question: Titling a property in LLC name

[Corey Collins]

Hi everyone,

I have a newbie question regarding purchasing a property through conventional financing and then quit claiming it into an LLC. I am aware of the risk of the loan being called as a result. However, I'm curious when/how (or if) the lender is notified when changing the title.

Two hypotheticals:

1) This seems more typical: A property is purchased and titled in a personal name. Soon thereafter it is quitclaimed into an LLC. Is the lender notified of this transfer automatically or would they have to specifically search for this information? How long would you typically wait until transferring? Immediately or after some time?

2) This seems potentially problematic but I'm still curious: A property is purchased through conventional financing and titled into an LLC immediately at closing. I feel like this would be pretty clear to the lender and could cause some problems. Still, worth asking since I'm not sure what they are notified of.

Thanks in advance!

[Wayne Brooks]

They don’t get notified, and likely won’t go looking for it. Usually they get tipped off when you have to change the insured name on your insurance policy, which you have to submit.