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J. Warren
J. Warren, Lawyer
Category: Real Estate Law
Satisfied Customers: 2236
Experience:  Experience in residential real estate and commercial leases.
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I have several properties under my name and that of my

Customer Question

I have several properties under my name and that of my fiancee in NYC and Texas. We also have an LLC that we use to make all the payments and receive income for the various properties. We hold the residential units under our name and we would like to use a quit claim deed or some other form to transfer to our LLC without having the mortgage be called on us or paying any taxes (or minimizing them if any). Is this possible?
Submitted: 1 year ago.
Category: Real Estate Law
Expert:  J. Warren replied 1 year ago.

Hello my name is ***** ***** I look forward to providing you information. Please note:

(1) this is general information and is not legal advice. I never propose a specific course of action. There is no attorney-client relationship or privilege that is formed when communicating to an expert on this site. The site repeats this disclaimer numerous times. By continuing, you confirm that you understand and agree to these terms; and

(2) there may be a slight delay between your follow ups and my reply while I am typing out my answer.

"Due on Sale" or "Due on Transfer" clauses to give lenders the option to accelerate the loans. Often people transfer to an LLC and never notify the bank and continue to make payments and the bank takes no action. This is risky however, as the lender could call the loan due.

The safest course of action is to notify the lender of the desire to transfer the property into an LLC. Most of the time, the banks/lender will not care because while the deeded owner changes name (individual to LLC) the underlying mortgage obligation remains in the name of the individuals.

Transferring property to an LLC which have the same members as the deeded owners is a exemption for tax purposes.

All my best & encouragement.

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All states have intricacies in their laws and any information given is simply information only and specifically is not intended to be, nor does it constitute, legal advice. This communication does not establish an attorney-client relationship with you.

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