Is it fraud to change title of property to LLC? - Posted by Chris Cirino

Real Estate Investing Real Estate Law
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Posted by Benjamin Rowe on October 16, 2004 at 10:37:30:

i am trying to find a lender that will allow me to title a property to a personally guaranteed LLC and i cant find one. also, if i decide to do a quit claim deed at closing, will i incur transfer taxes if/when i refi? thanks a lot.

Ben

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Is it fraud to change title of property to LLC? - Posted by Chris Cirino

Posted by Chris Cirino on August 10, 2004 at 20:02:02:

I recently purchased two condo units in Las Vegas and received financing personally. I read that it was illegal to transfer the title to an LLC, and that would be considered fraud. I also was told the bank can call the loan due if they find out the title was transfered. Anyone have any info on that? Thank you Chris

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change title of property to LLC? - Posted by John Merchant

Posted by John Merchant on August 11, 2004 at 10:04:25:

Answers: No and No.

Not fraud and in all likelihood bank wouldn’t call unless you’re already delinquent & they’re just looking for excuse.

This is a very common strategy with RE investors, and nothing wrong with it at all.

If there’s a tax to pay when you sell property, though, you might have to pay your state’s transfer tax.

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Re: change title of property to LLC? - Posted by Garrett Sutton

Posted by Garrett Sutton on August 18, 2004 at 19:47:09:

Unless you are contractually obligated to not transfer the property you are fine. First of all, if you were so obligated, such a transfer would be a breach of contract, not fraud. Secondly, if you deal with such a difficult bank you have every right to refinance. I work with a company that loans to LLC’s holding real estate. Let me know if you have a problem. Good luck, Garrett

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Re: change title of property to LLC? - Posted by Chris

Posted by Chris on August 19, 2004 at 22:47:56:

I greatly appreciate your information regarding my property. It is a challange when everyone you ask gives a different answer. I am still working on getting my team straigtened out. I am finding most “real estate” laweyrs just concentrate on closings and not the law. Thanks again
Chris