Legal Question in Real Estate Law in California

Re: Quit Claiming a Property

First, your question probably involves SC law as much or more than CA law, yet it is addressed to CA lawyers. I will try to answer according to general principles, but in the final analysis you'll need an opinion from someone licensed to practice law in South Carolina.

Let's start with the purchase in your own name. Two factual questions arise that may govern the rest of the analysis. (1) Did you pay cash, or is there financing of some kind collateralized by the property? (2) Was your purchase deed recorded?

If you paid cash and the deed was recorded, you are probably clear to go ahead and record the quitclaim to your LLC. If there is a loan, however, you will probably need to obtain the written permission of the lender to transfer the property to anyone, including an LLC you own. Further, the LLC probably won't shield you from personal liability for the loan, because the loan would preumably have priority in time over the LLC's claim to ownership.

If the deed by which you acquired ownership hasn't been recorded, that should be done first. It is important to keep the documents reflecting ownership of property recorded in proper time sequence so the chain of title is readily apparent to anyone investigating title.

There is a further issue presented. If your LLC was formed in California and will be doing business in another state, there is a possibility that it may need to register as a foreign LLC and pay franchise taxes in that other state. Sometimes merely owning property does not rise to the level of "doing business," but if this will be an operating farm, a rental property, etc., it may meet SC's requirements for registration. Just another reason you need to speak with a South Carolina lawyer.