Legal Question in Real Estate Law in California

how to transfer a rental apartment complex from family trust to a LLC in Californis. The property was purchased as 1031 exchange.


Asked on 8/25/14, 11:03 am

1 Answer from Attorneys

William Christian Rodi Pollock

Use a deed and the proper prelimiinary change of ownership form. If the ownership of the trust is not exactly the same as the LLC, the property will be reassesed for property tax purposes. Seek counsel to assure you do this correctly. Also check to see if there is a due on sale or transfer clause in your mortgage. Such a transfer may trigger an acceleration of the loan.

I would not suggest this be considered a " do it yourself" project. Nor would I suggest the formation of the LLC and the drafting of the Operating Agreement on a "do it yourself" basis. There are simply to many ways to screw it up.

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Answered on 8/25/14, 11:14 am


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