We just refinanced 2 rental properties from commercial loans to 30yr non owner occupied loans for a better interest rate. But now the deeds are back in our names than in our LLC. We want to protect our personal assets as much as possible and have been advised by our accountant to remove my name from our personal property deed, and to do a quit claim deed to put the rental property back into the LLC, and removing his name from the LLC.
Yes. The due on sale is correct. If you quitclaim to the LLC, you will need to get a completely new mortgage. If you absolutely do not want to keep to the property in your name, you ought to look at the trust option.
You probably have a due on sale clause in your mortgage. If so, you can put the property in trust rather than an LLC. Talk to your mortgage company and an attorney about this option. Although mortgage companies rarely enforce the due on sale clause, I wouldn’t want to be the first that they make an example of.
Best of luck to you.
First responder is correct. But there are, of course, other issues, of which the most important is taxation. There can be significant tax consequences from how a property is owned; it has been historically been the case that personal rather than corporate ownership is the better deal. As for liability issues, that’s what insurance is for.