Can I switch a property in our personal names to an LLC I opened?

[Garrett Leahigh]

I’m working on purchasing my first rental property but I don’t have an llc just yet. I just applied for one but it could take more than a month to get it. If I purchase this property in my name, then how hard is it to switch it under the llc and also are there any tax repercussions? Or would I be better off just leaving this property in my name until I acquire more?

[Matthew McNeil]

What @Julie N. wrote is correct. I've done it many times. Just make sure the LLC is set up with the names of the same people who bought the property. I've added a comment below that I've posted on similar questions from other BP members;

The lender can exercise the "due on sale" clause if the name(s) of the buyer are not the same name(s) as the members identified as the owners of the LLC. For clarity; as with a trust, lenders do not exercise the "due on transfer/sale" clause when real property is transferred to the SAME individuals in an official capacity (e.g. Joe and Jane Smith as trustees of Smith Trust). Typically, the same applies to LLCs where you and your spouse are sole members (single or multiple member LLC). Regardless, you should first talk to your lender and tell them exactly what you’re planning and get their approval.

Next is to check with the Title Company regarding the Title insurance. Generally, the coverage of the policy will state; “The coverage of this policy shall continue in force as of Date of Policy in favor of an Insured after acquisition of the Title by an Insured or after conveyance by an Insured, but only so long as the Insured retains an estate or interest in the Land, or holds an obligation secured by a purchase money Mortgage given by a purchaser from the Insured, or only so long as the Insured shall have liability by reason of warranties in any transfer or conveyance of the Title.” Again, as with the question regarding the lender mentioned above, its best to ask your Title company if the insurance coverage remains intact if the asset is transferred.