Legal Question in Real Estate Law in California
Transfering Deeds
I was the sole owner of a multi- family unit in CA, but, I had to acquire a mortgage on the property recently. I want to transfer the property into trust or LLC to reduce liability risks, but not sure what would happen to my mortgage. Is that possible now that I have a deed of trust with my bank?
1 Answer from Attorneys
Re: Transfering Deeds
Without knowing the terms of your loan agreement or the trust deed, I can't give a particularly definitive answer. In general, though, most real estate secured loans include a "due-on-transfer" provision, which accelerates the note, requiring immediate payment of the loan balance. If your loan contains such a provision, you would definitely want to ask the lender to waive the provision and approve the transfer.
I'd recommend consulting a real estate attorney in your area, and have him or her determine what the loan docs say about such a transfer.
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