Legal Question in Real Estate Law in California

Re: Changing title vesting to llc

Keep in mind that vesting (title) and "mortgage" (deed of trust) are two separate concepts. You can transfer title (ownership) from your names to the name of your LLC without, at least in theory, the lender's permission. The problem is that in doing so, you MIGHT trigger a "due on sale" or similar provision in your loan agreement.

Step one is to read your note and deed of trust carefully, to see if there is a due on sale clause, or something that puts teeth into the lender's unhappiness with the proposed transfer, which is otherwise none of the lender's business.

If there is an onerous anti-transfer provision, you should consider refinancing. This may be advantageous on a stand-alone basis, without regard to the proposed change of ownership.

Of course, changing the way the title is held does not, in and of itself, change your personal liability on the existing financing.

To make doubly sure you stay out of legal entanglements, you should have the LLC set up by an attorney, and have that same attorney comment on the unhappy lender issue. Also, have any title transfers professionally documented and processed by a reputable title and escrow company in the county where the apartment is located.

Re: Changing title vesting to llc

Even do this anytime you wish just by changing the title and transferring it into an existing LLC. That does not mean it may not have adverse effects. Their numerous questions I have, and the first what is what you care what the lender says unless they are going to call the loan based upon the transfer. How much communication of you and with the lender. Do not think it is by transferring it into an LLC that wipes away all the history of personal liability for the loan since its inception. Wrong grasshopper. My immediate and definite advice is, amazingly see the aid and advice of a real estate attorney said the you're better understand what the effects of your actions may be.i have been practicing law in this speciality for over 30 years in the san francisco bay area and if you wish to consult with me you can contact me at 925-945-6000.