Discussion:Transferring mortgaged R/E into LLC

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Discussion Forum Index --> Tax Questions --> Transferring mortgaged R/E into LLC


Jdugancpa (talk|edits) said:

12 September 2006
Client has several rental houses owned personally. What is necessary to transfer the properties and the mortgages into the LLC? An associate has recommended contacting the lender for approval first, then if approval is granted, quit claiming the properties into the LLC. Anything else need to be done?

Mtmckeecpa (talk|edits) said:

13 September 2006
Jd,

I did this with a client in Florida...we went through an attorney, paid the doc stamps on the transfer to the LLC and deeded the property to the LLC. This was done about 1 1/2 years ago, we didn't contact the lender, so far no problem.

On something like this, I'd use a real estate attorney.

BottomLine (talk|edits) said:

13 September 2006
I would definitely use an attorney for this. Don't want to trigger a "due on sale" clause and give the bank an excuse to call the loan.

JR1 (talk|edits) said:

September 13, 2006
It should be rather perfunctory, actually, but an attorney is essential. Note that attorneys recommend separate LLC's for each property, so that all are shielded from any suits to another. In Illinois, I've just learned that there's a new multiple LLC statute just for this purpose, with the fee being a mere $50 for each. Series LLC I think it's called. Other states may be doing the same thing. Check into it.

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