Legal Question in Real Estate Law in California
How to transfer fully paid-for real property fro limited partnership to LLC - Calif.
1 Answer from Attorneys
The property would be transferred by deed - either quitclaim deed or grant deed - executed on behalf of the limited partnership by its duly-authorized officer, presumably a general partner signing before a notary public, and showing the LLC as the grantee. In order to avoid indexing problems, the name of the grantor limited partnership should be set forth in the deed exactly as it was shown on the instrument by which the limited partnership acquired and recorded its title. Similarly, the LLC's name needs to be set forth fully and accurately, and a full and accurate legal description of the property needs to be included in the deed, or on an exhibit to it. In order to insure correct format, the parties should consider having a title company draw up the documents, handle the recording, and perhaps issue title insurance. The deed should then be recorded, and the recorder will want to know the relationship between the grantor and the grantee (is one a successor of the other, is it an arm's length sale, etc.) for transfer tax and assessment purposes. A title or escrow company can assist with this as well.
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