Real Estate Law
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Hi and welcome to JA. I am Ray and will be the expert helping you tonight.
This is good dead here and this is why.California Revenue and Taxation Code (R&TC) allows imposition of a transfer tax on a transfer of a interest in real estate for value. However, when the transfer is a bona fide gift (i.e., no money or other consideration is given), the transfer tax does not apply.
He is indicating this so you are not charged a transfer tax under California law. I understand your concern but I assure you this does not affect the transfer of the property but rather saves the LLC taxes.
I appreciate the chance to help you tonight.Please let me know if you have more follow up.Thanks again.
Law for reference.
As you can see here this is standard language to reflect it is a standard transfer there is no sale or gain so not taxed with this language.