LLC

[Chase Shank]

Transferring a property purchased in your name to an LLC. How does this work?

[Bill Gulley]

BUZZZZZZZZZ!

We have a winner!  Melanie has the best answer!

A quit claim breaks the chain of title and can make it more difficult for your LLC or the next buyer to insure title.

A General Warrant Deed conveys with title being guaranteed, any title issue for your LLC can come back on you, if you warrant title you have coverage that comes back to you personally as you held coverage.

Title runs forever, but at about 50 years, you should be in the clear as to any claims.

Melanie is correct in advising you to see your attorney as well, disposing the only property held, reduces assets, are you sure there are no other interests involved?

Quit Claim Deeds are really only the proper deed in a few instances, conveying interests among related parties, into trusts for estate planning where the beneficiary doesn't change or in some divorce matter or in gifting property, the other is in giving a deed in lieu of foreclosure from borrower(s) to a lender/lien holder.

It is better to use a General Warranty Deed or Special Warranty Deed excepting out any lien assumed. Before you start using deeds contact your title insurance company as to the proper use of deeds as to title coverage, ALTA has had recent requirements changed and, ultimately, what is acceptable to them in your state will govern, your attorney can advise you as to the proper deeds as to the risks you retain or convey for your situation.

The only caution I have, saying a lender doesn't look, isn't really true, they do look, loans are audited, about 3 times after making them in the first year and thereafter at random, unless there is something else that pops up on the radar. Your deeding a property can be a violation of your security agreement. Is it a big risk? Usually not and you can cure the matter if need be.....might be brain damage, but you can ask for forgiveness.

See your attorney!  :)