Legal Question in Real Estate Law in Texas
commercial real estate deed documents
Corporation A holds two commercial (revenue generating) shopping centers and we would like to move these two properties (both properties are entirely paid off) into a seperate and existing Corporation B in order to distribute the liablities between the corporations. This will not be a sale of the properties, therefore we should not be responsible for paying taxes on the transfer. Which deed document would be the most applicable to file in this case of simply transferring properties to another existing corporation? Warranty or Quit Claim deed and why? Thanks.
1 Answer from Attorneys
Re: commercial real estate deed documents
A quitclaim is not a transfer of title, only a release of claims. A deed (with or without warranty) will transfer an ownership interest in a parcel.
However, I am still unclear as to how B is to acquire the property from A, if there is no sale. Is B paying any consideration? Does B have a property that it needs to 1031? or ??