How to transfer a rental property title to an LLC

[Eloy Romero]

Hello, 

I have come across a little bit of conflicting information regarding transferring rental property deeds to an LLC. I currently rent out a property that was my previous primary residence and have created an LLC. I plan to speak to my mortgage company and see what options I have to transfer the deed to my LLC. My question is, if the mortgage company does not allow me to transfer title, what other steps can I take? I would really like to avoid refinancing the property, due to the terms of the mortgage being that of a primary residence (30 year term, 3.65% interest).

[Megan Templeton]

Depending on the type of property and type of loan, the property can be moved post closing to a trust without trigger the due on sale clause. This is due to an exception called the St. Germain Act. The St. Germain Act states that a property with less than 5 units can be transferred under certain circumstances. The full text of the st gertmain Act can be found here: https://www.law.cornell.edu/uscode/text/12/1701j-3. If you have a residential SFH, you should not have an issue transferring title post closing a land trust (which can be connected to an LLC) as long as you remain the ultimate owner.