Legal Question in Real Estate Law in California

Dees your note have a "due on sale or transfer" provision? If so, you can call or, potentially, accelerate the loan ( depending on how the provision reads). In general the debt follows the land. You may want to have counsel review the actual loan terms to fuly advise you on the implications.

Mr. Christian assumes something that you do not mention in your question - that you secured your note with a deed of trust. The debt only "follows the land" if you have a recorded security interest in the land, which in California is almost universally done with a deed of trust. Otherwise I completely agree with him. Have an attorney review your documents and advise you, since any reliable answer to your question will depend largely on the documents.

This is probably good news, as putting property into an LLC is often a first step in the development process.

I assume your note is secured by a recorded deed of trust. Usually, deeds of trust have a "due on sale" clause that accelerates the balance due the lender upon any transfer of ownership by the borrower. I suggest that you verify the existence and terms of any due on sale clause in your DofT.

Borrowers often ask lenders to waive the due-on-sale provisions. Lenders sometimes oblige, but often ask for a fee to do so.

In any event, transfer of the parcel from individual ownership to an LLC should not affect the priority of your recorded lien on the property. The LLC will receive its title subject to the recorded lien of your DofT.

If the property is secured, it is no big deal. If the property is not secured, then you have a problem.