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Updated over 5 years ago on . Most recent reply

transferring rental to LLC: warranty deed or quitclaim deed?
Hi - I am wanting to transfer my rental in Washington State to my new LLC for asset protection. Should I use a quitclaim or warranty deed? There is no lender involved. I have read about the benefits of each but don't understand what is best in my case (https://www.rocketlawyer.com/article/what-is-a-warranty-deed-vs-a-quit-claim-deed-ps.rl). My novice understanding is that a warranty deed seems to offer better title guarantees if in the future I should choose to sell the rental. Is this accurate and will this matter to a future buyer? I also wasn't clear whether a warranty deed could trigger property sales taxes.
Thank you so much. I am new to this forum.
Most Popular Reply

Quit claim for sure...you were given clear title when you purchased the property in your name. The Quit Claim allows you to skip redoing the title work when all you're doing is transferring title from you to one of your entities. There's no benefit in incurring the cost of what a warranty deed requires in a non-sale event. When you do sell, that's when the title will be updated/liens checked - and a warranty deed issued.