HML’s are used to private loans and should have a set of well-vetted paperwork and the appropriate license, as required.

Please, seeking guidance on the approach to handle this efficiently from a tax perspective and from a paperwork perspective to transfer to myself/sister and then to LLC. 

Please, seeking guidance on the approach to handle this efficiently from a tax perspective and from a paperwork perspective to transfer to myself/sister and then to LLC.

So I know you have to have a lot of extra paperwork completed when utilizing this type of loan, as well as get contractor estimates, etc but in general, does this loan typically take weeks, months, etc to get approved?

I have students ready to sign and I don't have the paperwork yet.

Am NOT a prop manager (am a broker), but a GOOD PM:1) Knows the rules and paperwork govt requires.  

Mail the paperwork to the court with a check or bring it in4.

And its like you said, paperwork clarifies things.

I wasn't going to hold them accountable if the deductions isn't available after looking at the paperwork so at the end I just ended up not taking those into account when I filed the taxes. 

Their actions were likely not in compliance with these rules for notifying you of a problem.Your lease paperwork should also explain the penalties of early termination, which is exactly what this is.