Legal Question in Real Estate Law in Arizona
Do I quitclaim or warranty deed a property into my LLC?
Hi, I have three townhomes in AZ that I want to transfer into my Nevada
based LLC. How should I do it? Quitclaim form, or warranty deed? Is it
straightforward or do I need a lawyer to do it?
Thanks for your advice.
1 Answer from Attorneys
Re: Do I quitclaim or warranty deed a property into my LLC?
You could probably do it yourself, but it would be wiser to get an attorney to do it for you, simply because the value of the property in question is so much greater than the fee any reasonable attorney would charge for performing this simple, basic service. Why risk a screw-up?
For example, in the abstract, either a quitclaim or a warranty deed would be effective to carry out the transfer. However, there are subtle differences in their impact on the chain of title and possibly on your relationship with the LLC (i.e., whether you are and always will be the sole economic owner). You would need a lawyer who is able to interview you to get the advantage (or avoid the disadvantage) of these subtle differences.
Further, you need a lawyer who practices in the jurisdiction where the property is located. That is somewhat more important that one who practices where the LLC is registered.
I would also recommend legal advice (if you don't already have it) on the whole concept of transferring real property to an LLC. Sure, there are reasons to do that, sometimes; but is this a scheme you've cooked up yourself for asset protection or tax shelter, or are you doing this based upon competent legal and tax-accounting advice? Why is this a NEVADA LLC rather than one formed in Arizona (more logical) or California (if that's where you live)?
I'd suggest having the whole project reviewed for tax, insurance, asset-protection, estate planning and fraudulent-transfer probblems avoidance.