They would essentially gift the money from the lenders perspective, but from the 1031 perspective the funds will be transferred directly to escrow at closing so it may satisfy both sides.

Transferring to a LLC provides you fake protection (note I am not an attorney but have common sense).

Some counties have the transfer deed date and update weekly. 

The “due on sale” clause does not, in fact , legally CAN NOT, prohibit a transfer of property where the mortgage lien is not paid off.  

Through this assignment agreement, you are transferring your rights to purchase the property to your buyer for a fee. 

I'm in the process of transferring some LLCs to my family trust.

This is so that the lender may demand full repayment if a property with a mortgage is transferred into an LLC and a due-on-sale provision is triggered.Before putting the property into an LLC, make sure to check with your mortgage lender.

Was also going to look into transferring my rentals lease onto a LLC, but if they were to call the loan due that would sort of hardcore suck.

Fannie Mae allows a borrower to transfer title to the property to an LLC that they are the majority members of after closing without it violating the due on sale clause.

If your property is located in the city of Detroit you can transfer the water to the tenant all you need to do is setup your account as a landlord account and you need to deposit $150, then once a new tenant comes in you tell the tenant to sign up as a new customer with the city and the water will be billed to their name and SSN.