Quitclaim Deeds for LLCs

 Posted on August 17, 2022 in Residential Landlord Evictions

In this blog article, we will discuss quitclaim deeds and how to transfer your property ownership into an LLC or otherwise known as an “Limited Liability Company”. 

Kendall County Quitclaim Deed Attorney for Real Estate Investors and Property Owners

A quitclaim deed enables a new property owner to obtain whatever the current owner has in the property when the real estate deed is signed and delivered. Hence, a quitclaim deed is unlike a warranty deed because the new property owner gets the property interest that was previously owned by the past owner. Therefore, liens, judgments, and mortgages will still require title clearance for a sale of the property to occur.

Does a spouse have sign when the property involves investment or vacation property?

Generally, a spouse does not acquire homestead rights in investment, rental, and/or vacation property. A personal residence is a property interest where a current spouse must sign a quitclaim deed because of homestead rights.

Transfer of Property Ownership into an LLC or Series LLC

Rental property is highly recommended to be placed into an LLC or Series LLCs name. The benefit of an LLC is limited liability protection. Rental property ownership contains high-risk and liability concerns because a business creditor of a rental property owner may place a lien on all property owned by a spouse or family business if not structured the correct way.

A quitclaim deed is required to transfer one’s property interest to an LLC. In instances where rental property owners own two or more rental properties, a Series LLC may be beneficial. A Series LLC is a unique type of LLC because it enables a rental property owner to set up sister LLCs under the master LLC. This asset protection arrangement is beneficial because it segregates the liability concerns of each rental property into compartments. 

Separating liability concerns into compartments is like virus protection for a computer because each property has protection from the liability concerns of the other properties (or computers in our example). 

A quitclaim deed unlike a warranty deed is not a guarantee that the existing property ownership is transferring a valid property interest. A limitation of a quitclaim deed is the existing ownership is transferring the exact property ownership that they have at the time of LLC transfer.

Do You Need Permission from Your Mortgage Lender?

A transfer of property ownership to an LLC may violate a due-on-sale clause contained in your mortgage. Generally, lenders will not give permission to transfer ownership of a rental property into an LLC. However, in most circumstances, the mortgage lender will not be concerned about the transfer of a rental property into an LLC. The only time where a situation may arise is in case of a foreclosure. A lender may require a property owner to transfer their property ownership interest back to an LLC in case of pre-foreclosure proceedings. The lender will generally give notice to rental property ownership of their concern. A rental property owner may request lender permission, but most rental property owners may skip this process. Lenders will generally not respond, nor do they want to know in most circumstances. 

Kendall County Property Transfer and Quitclaim Deed Lawyers

The lawyers and support staff of Landlord Evictions, LLC are experienced Quitclaim Deed and Property Transfer Lawyers. Our real estate team assists landlords and property owners with the transfer of rental property and other property interest into Limited Liability Companies or otherwise known as “LLCs”.

Our Quitclaim Deed lawyers transfer thousands of property transfers into LLCs and other names yearly. We are relied upon by multiple mortgage lenders to transfer their customers' interests through Quitclaim Deeds. We gained our experience working with a leading refinance title company representing hundreds of leading mortgage lenders and providers.

Trusted Yorkville, Oswego, Aurora, and Plano Quitclaim Deed Attorneys

If you want a cost-effective and smooth process, contact Landlord Evictions, LLC today. Contact us through our online form or call us today. We help people transfer quitclaim deeds for the following reasons:

• Transferring Rental Properties into LLCs

• Quitclaim Deeds in case of divorce or refinance

• Removing a spouse or other parties from title

• Transfer property into a Revocable Living Trust

• Adding a spouse to real estate title

• Refinancing a property and having to transfer property out of an LLC or Land Trust and need to transfer the property interest back to your LLC or Land Trust

• Any other reason for a quitclaim deed.

We help people in the areas of Aurora, Montgomery, North Aurora, Batavia, Yorkville, Newark, Lisbon, Plano, Oswego, Shorewood, Minooka, Channahon, Morris, and other nearby areas. Contact us today via online form or call us.