Posted by River City on January 09, 2006 at 09:01:51:
It sounds to me like they are going to run a credit application on the LLC to show their regulators that they have run gammit on protecting the bank’s depositors. They will have to change the name on all of the documentation that could impact ownership, which takes time and these documents also have to be recorded. I don’t know the value of the apartment complex, however, it is more than likely valued at more than the average residence in the U.S. which is around $180,000. The process they will go through will take several hours of work. So, the $1500 appears to be more in line especially since there will be no attorney’s fee.
Banks cannot afford to do things for free because this would increase rates for depositor services.
I’m not sure which board this question belongs to, please point me to the right one if this is not the one it should be on.
I own a 10-unit apartment complex which is currently under my name. I’ve sent a request to the bank to transfer the title under the name of LLC I opened for this property and they approved, however, they are asking me to pay $500 attorney fee and $1500 fee which goes to the bank for the transaction. These fees seem very high to me, anybody has experience with this? Is this normal?
Posted by River City on January 08, 2006 at 15:06:11:
Different areas of the country price things differently. The $1500 fee does seem out of control. Why don’t you contact an attorney on your own and see what they would charge. Usually it would be a small fee for about an hour’s time and then the cost of preparing and recording the document. All of this is under the assumption that you own the apartment complex free and clear and there are no liens against the property which could possibly cause other problems according to the way the lien documents read.
The apartment complex is mortgaged and the mortgage is the only lien. Both the mortgage and the title are under my name. The bank representative called me on Friday and said there won’t be an atterney fee, but the bank fee (they call it an investor fee) of $1500 for processing stands. The property is in Georgia. I think $1500 for processing does sound out of control. What do you think? What are my options?
Any help is highly appreciated.
Thank you,
Alex.