Posted on: 19th Feb, 2009 07:32 am
if i quit claim deed me and my spouse's property(real estate) to an llc in which we are also the principals, can we shield that property from future claims by creditors?
Hi CFranco,
If you have a mortgage on your property, you cannot transfer it to an LLC. There's a due-on-sale clause in the loan agreement which states if the ownership of the property is changed the loan amount becomes due immediately. Thus in such a condition if the property is transferred it will be a breach of your loan contract and a violation of your financial obligations.
If you have a mortgage on your property, you cannot transfer it to an LLC. There's a due-on-sale clause in the loan agreement which states if the ownership of the property is changed the loan amount becomes due immediately. Thus in such a condition if the property is transferred it will be a breach of your loan contract and a violation of your financial obligations.