Transfer ownership of real estate FAQs
Some choose to transfer property to an LLC to help limit their personal liability, especially if they own commercial or rental properties. Those who own multiple properties usually form an LLC for each property to protect the properties from each other in liable situations. If you have not yet formed an LLC, we can help you Start an LLC. If you are carrying a mortgage on the property, the first step to beginning the process is to contact your lender. Your lender can guide you through the process of transferring the property and the associated mortgage. Once the process is complete, you'll want to update your active lease agreements with your tenants.
A Quitclaim Deed is most often used when both parties know each other well since it provides minimal protection for the party receiving the "interest." A Quitclaim Deed documents that someone has given up interest in a property. In most cases, the property is owned outright. It can be used to transfer property from:
Transferring property to a trust is often not difficult and can be completed using a deed transfer. You can use a QuitClaim Deed if there are no known title issues, or a Warranty Deed if you want to ensure there are no issues with the title. If the property is mortgaged, ask your lender what would happen if you transfer the property to a trust. Sometimes you have to pay off the mortgage to transfer the property, especially if the property is not being transferred to a family trust.
In most cases, you can transfer property to a family member using a Quitclaim Deed or a Warranty Deed. It is not difficult, but there may be tax implications you'll want to explore before you transfer the property. Your accountant can explain possible tax issues such as gift taxes. In some situations, it may even be more beneficial to transfer property to a family trust rather than to one family member. While the actual paperwork to transfer property is simple, you'll want to discuss the topic with an estate lawyer and your accountant before transferring expensive property.
Obtaining a Quitclaim Deed or a Warranty Deed is simple and low-priced. We can provide the initial paperwork as part of your membership. Other expenses may include: