Moving a property into an LLC by quit claim deed is a fifteen-minute job at the recorder’s office, which is precisely why it is done carelessly. The deed itself is simple. The three things it interacts with — your mortgage, your title insurance, and your transfer tax — are not, and all three are easier to address before recording than after.
What a quit claim deed actually does
It conveys whatever interest the grantor holds — possibly full ownership, possibly nothing — with no warranty of title whatsoever. A warranty deed, by contrast, guarantees clear title and gives the grantee recourse against the grantor. Between unrelated parties a quit claim is rarely appropriate. Between you and your own LLC it is common, because you are not going to sue yourself, and the interest being conveyed is known.
The mortgage consequence
A transfer to an LLC is a transfer of the property under the standard mortgage instrument, and it triggers the due-on-sale clause — including a transfer to an entity you wholly own. Lenders do not always act, and many will consent if asked, but the right exists and acceleration is theirs to exercise. The clean answer is to buy in the entity from the start with a loan that permits LLC vesting, which most DSCR lenders do, rather than deeding in afterwards and hoping.
Title insurance usually does not follow the deed
Your owner’s title policy insures you, the named insured. Convey to an LLC and the policy may not extend to the new owner, leaving the property uninsured for title defects. This is the consequence investors discover at the worst possible moment — when a defect surfaces during a later sale. Ask your title company before recording; an endorsement or a new policy is usually available and inexpensive compared with the exposure.
Transfer tax and reassessment
Many jurisdictions charge real estate transfer tax on a conveyance, and some assess it even on a transfer between an individual and their own entity. Exemptions for transfers to wholly owned entities exist in a good number of places but are not universal, and some require a specific form filed at recording. Separately, a few jurisdictions treat the transfer as a change of ownership triggering property tax reassessment. Both are local questions with real dollar consequences — check before recording, not after the bill arrives.
The sequence that avoids all of this
Form the entity first. Obtain financing that permits title in the entity — DSCR and most investor lenders do, typically with a personal guarantee. Take title in the LLC at closing. No transfer, no due-on-sale question, no title insurance gap, no transfer tax event. For properties you already own with conventional financing, the alternatives are asking the lender for written consent, or refinancing into a loan that allows entity vesting, which also removes the underlying constraint permanently.
Quit Claim Deed to LLC FAQ
Yes — a transfer to an entity is a triggering event under the standard mortgage instrument, even one you wholly own. Many lenders do not act, but the right is theirs.
Possibly not. The policy insures the named insured. Ask the title company about an endorsement or a new policy before recording.
It depends on the jurisdiction. Many exempt transfers to a wholly owned entity, often requiring a specific form; others do not exempt them at all.
Between you and your own LLC, a quit claim is typically used and adequate. Between unrelated parties it offers the grantee no protection.
In most places a transfer to a wholly owned entity is not a reassessment event, but some jurisdictions treat it as a change of ownership. Check locally first.
Buying in the LLC from the start with a lender that permits entity vesting — most DSCR lenders do. That avoids the transfer entirely.