QUESTION

By transferring title of the property from my name to LLC, will it transfer liabilities to LLC? How much a attorney generally charge for title change?

Asked on Jun 21st, 2012 on Real Estate - Florida
More details to this question:
I have formed an LLC with the intend to buy single family homes and condos as investment properties. As my LLC is new with no history banks wont loan my LLC. So I am planning to get mortgage loan on my name and buy properties with title on my name. Once loan is closed, I plan to transfer title to LLC, to release myself personally from any form of liability, except the mortgage liability. I am wondering by doing so, am I fully releasing myself from liabilities and how much a real estate attorney will charge me to do so as title company told me that this will be done by an attoreney not by title agency.
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1 ANSWER

There are no guaranties when you are trying to achieve asset protection, however, placing an asset in a LLC is one way to create a possible hurdle for asset protection.  One warning, in Florida a single member LLC does not give as much protection as a multi member LLC. Another issue is that the transfer of title of the property to an LLC after closing the loan in your individual name could trigger the due on sale clause of the mortgage, and cause the loss of title insurance coverage.  I am not sure what else you mean by "releasing myself from liabilities". As for the cost, we typically charge $250 per deed plus transfer taxes and recording charges.  Note that depending on how you are transferring title, and the structure of the LLC, you may have to pay full documentary stamp taxes on the transfer from your name to the LLC. This is specific to Florida law and does not constitute legal advice as the facts presented are anonymous and incomplete. This is intended for general education only and does not create an attorney-client relationship. This should not be relied on and you must seek your own attorney client relationship.
Answered on Jun 22nd, 2012 at 6:15 PM

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