We (Husband and Wife) own a California apartment complex ans we plan to transfer the title of the apartment complex to a Limited liability co. which is owned by us - husband and wife .
What type of deed should we use?
Quit claim Deed?
Real Estate Attorney
Either a Grant Deed or a Quitclaim Deed will work.
This answer does not constitue legal advice, nor does it creat an attorney/client relationship. If you are seeking legal advice upon which you intend to rely, you should hire competent cousel familiar with this area of the law in your locale.
Usually a Grant Deed is used in such instance. Make sure you inform the title insurance company of this title transfer so that your LLC continues to be covered.
Frank W. Chen has been licensed to practice law in California since 1988. The information presented here is general in nature and is not intended, nor should be construed, as legal advice for a particular case. This Avvo.com posting does not create any attorney-client relationship with the author. For specific advice about your particular situation, please consult with your own attorney.
A Grant (Warranty) Deed or a Quitclaim Deed are commonly used. The Quitclaim only purports to transfer whatever rights are held by the grantor. Ask if your Title company will do the transfer for you. However, for estate, asset protection and tax reasons, engage an attorney to determine if you and your husband are best suited for the transfer as described. Have you determined whether title should be held - other than as Husband and Wife - and then transfered to the LLC?
1 lawyer agrees
Real Estate Attorney
An important issue you did not ask about is avoiding reassessment. If the property is owned by the same persons who will be members of the LLC, and they'll have the same proportionate interests in the LLC as they do in the property, it will not cause a "change in ownership" and you will not be reassessed and the property taxes will not be increased.
In addition to the title insurance issue, you will need to contact your hazard insurance carrier and ask them to add the LLC as an additional insured, with liability coverage...don't just get the policy in the name of the LLC alone, as this change will be sent to your lender, if you have one listed already as an additional interest, and your transfer will likely be considered a default of the loan documents. So just add the LLC as additional insured..
The foregoing is for informational purposes only and may not be relied on as attorney-client advice.