Legal Question in Real Estate Law in Florida
Transferring Real Estate Assets to New LLC
After having purchased a rental apartment in Florida I set up an LLC. How do I transfer the apartment, which is currently in my name, to the LLC? Thank you.
3 Answers from Attorneys
Re: Transferring Real Estate Assets to New LLC
Need to file new deed.
Re: Transferring Real Estate Assets to New LLC
A new Deed is required to be recorded, from you to the LLC. Use nominal consideration as the "purchase price", usually showing $10.00. You do not state if there is a mortgage. If so, is there ary restriction on a transfer to the LLC, where you are the LLC and will remain liable for the mortgage? You need to check this before recording the new Deed.
Re: Transferring Real Estate Assets to New LLC
If you have a mortgage it may have a "due on sale" clause, which means that pursuant to the mortgage the entire balance on the promissory note is due the moment you transfer title to the LLC. Odds are the mortgagee will not know about any transfer unless you fail to pay the mortgage and a title search is performed. However, you should read your mortgage carefully to learn whether it contains a "due on sale" clause, and if it does, you should be aware of the risk that the mortgage loan may be called in at anytime after you transfer title. The transfer of title may be effectuated by way of a quit claim deed from you to the LLC.
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