General Landlording & Rental Properties
Market News & Data
General Info
Real Estate Strategies

Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal


Real Estate Classifieds
Reviews & Feedback
Updated about 5 years ago on . Most recent reply
Leasing rental prior to forming a legal entity
I have two questions about leasing a SFH that I hold in my personal name (because I recently purchased it as a replacement property for a 1031 exchange in which the relinquished property - a vacant lot - was held in my name) but will soon be transferring into an LLC.
I was told by my closing attorney that I should wait "a couple of months," at least until after the new year, to transfer the title into the LLC in order to avoid any tax implications. I don't know if this is actually necessary.
My first question: Is there a certain length of time I need to keep the property in my name for the 1031 to remain valid?
I have a tenant moving in 1-4-20. If I lease the property in my name I would likely have to get a new lease agreement signed when the title is transferred to the LLC.
My second question: Is there some clause I can put in the lease, such as "and or assigns," that would allow me to assign the contract to the LLC at a later date, without having to get a new lease signed after the title is transferred?
If anybody has any experience with a similar situation or advice on how best to handle this I would greatly appreciate it.
Thanks in advance and happy holidays.
Seleem