Full question:
I own several real estate lots and have already set up a LLC. How do I change the lots out of my name to the LLC that I have set up. If one of the properties have a lien on the property, can I still change it over to the LLC?
- Category: Real Property
- Subcategory: Deeds
- Date:
- State: Tennessee
Answer:
A deed is the document that transfers ownership of real property. It must describe the property, name the grantor (the person transferring the property) and the grantee (the person receiving it), and be signed and notarized by the grantor. The deed must also be delivered and accepted to be effective. Most states assume delivery if the grantee possesses the deed. The deed must be recorded in the county recorder's office where the property is located.
You can transfer property from your name to your LLC using a deed. There are two main types of deeds: a warranty deed, which guarantees ownership, and a quitclaim deed, which transfers whatever interest the grantor has without guarantees. A quitclaim deed is often used when there is little doubt about ownership and can transfer property subject to existing liens.
If one of your properties has a lien, you can still transfer it to your LLC, but the property will be transferred subject to that lien. The new owner (the LLC) will take the property with the existing encumbrances, including the lien. The lien remains in effect, and the LLC will be responsible for any obligations related to it, such as mortgage payments. To remove a lien, a release or satisfaction must be obtained according to local procedures.
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.