Legal Question in Real Estate Law in California
Transfer deed
What deed should I use to transfer property from an LLC to two individuals?
3 Answers from Attorneys
Re: Transfer deed
A grant deed if this is a sale. You will also need to file a Change/Preliminary Notice for reassessment with the county.
Re: Transfer deed
An LLC would use the same forms as any other entity. The following should be considered:
(1) The term 'property' is possibly ambiguous. I assume you mean 'real property' rather than 'personal property.'
(2) You can use a grant deed if you intend to warrant that the seller has good title. If the title is not to be warranted, you might prefer to use a quitclaim.
(3) In addition to the deed, the transaction probably requires other supporting documents, such as a contract of sale. All the documents need to be prepared and executed in conformance with the LLC's operating agreement.
(4) It is preferable for both the seller and the buyer to run such a transaction through escrow at a reputable escrow or title company (depending upon local practice in your county). This will help to assure that the documentation is regular and that recording is carried out properly.
Re: Transfer deed
Use a quitclaim deed. Also prepare a sales contract setting forth the terms of the sale. This is assuming that the transfer is to individuals who are owners of or relatives of owners of the LLC. If not, go through escrow and the usual real estate sales procedure.