Posted by David Krulac on August 07, 2004 at 07:28:36:
check with your insurer, but I think that the change in ownership terminates the title insurance.
Quit-Claim Affect on Title Insurance? - Posted by M
Posted by M on August 06, 2004 at 14:19:40:
I want to quit-claim a SFH that I own personally into my LLC. I am unclear on how that affects the title insurance already in place. Thanks.
Re: Quit-Claim Affect on Title Insurance? - Posted by Steve Parker
Posted by Steve Parker on August 16, 2004 at 07:41:58:
While talking to the attorney (yes, do it), ask their opinion on two possible options:
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Get an endorsement from your current title insurer for the transfer. May cost a few bucks but should be much cheaper than a new policy.
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Find out whether the current policy actually terminates or just doesn’t cover the transfer to the LLC. For example, you do the quit claim deed and later run into a title issue from prior to that transfer. The LLC could sue the grantor of the deed (you), who in turn would rely on that title policy to defend the issue.
I had an attorney recommend #2 to me when transferring my primary residence into a living trust and he said the same would hold true for an investment property going into a LLC I own. The title company covered the living trust transfer for free but I haven’t been down that path with an investment property going into LLC yet.
To your wealth,
Steve
Re: Quit-Claim Affect on Title Insurance? - Posted by john bruno
Posted by john bruno on August 07, 2004 at 21:33:55:
Forget the title company, check with a real estate attorney.
Importantly, I would be concerned with the IRS considering it as a “transfer of an interest” which might be a taxable event!
Talk with a REAL ESTATE ATTORNEY on this one.