To transfer the deed of a mortgaged property from an individual name to a Limited Liability Company (LLC), you can generally complete a quit claim deed handing over your personal rights to the property to the LLC. While you have the right to transfer ownership (deed) of the property to whomever you choose, including a LLC, when there is a mortgage on the property, the mortgage lender also has an interest in the property. Because the mortgage borrower must have an ownership interest in the property, the lender may or may not allow a personal borrower to hold the mortgage on a property owned by a LLC.
- Skill level:
Things you need
- Old deed
- New deed
Contact current mortgage lender. Tell the lender you want to transfer the deed of the property from your individual name into the name of a LLC. Find out if you can proceed with the deed transfer and keep the mortgage as is or if you need to refinance the mortgage.
Hire a real estate attorney or title company. A real estate attorney or title company can draw up the deed transfer paperwork and legally record it. You can hire a new attorney or title company or contact the title company or attorney from the original mortgage transaction to complete the transfer paperwork.
Obtain a copy of the new deed. Obtain a copy of the deed that shows the LLC has ownership of the property. You'll need this document to apply for and establish a new mortgage in the name of the LLC.
Apply for a refinance. Submit a refinance application with your current lender or a new lender to establish a new mortgage in the name of the LLC. You may have a hard time finding a traditional lender to make a loan to a LLC.
Tips and warnings
- Most traditional lenders will not approve a LLC for a mortgage, so check with your current lender and other lenders for requirements. While holding the deed of the property in the name of a LLC does not have legal advantages, it can have adverse effects when it comes to the financing on the property.
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