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How to transfer property into your LLC

Deeding a property into your LLC is straightforward. The complications are everything around it. This is the one transfer most likely to trip a due-on-sale clause, and it can quietly void your title insurance and your homestead exemption at the same time.

Reviewed July 28, 2026
Create the LLC deed

Talk to your lender before you record anything

Unlike transfers to a spouse or to a revocable trust, a transfer to an LLC is not protected by the Garn-St Germain Act. The due-on-sale clause is enforceable. Most lenders do not act on it for a performing loan, but 'most lenders usually do not' is not the same as 'they cannot'.

Before you transfer

  1. Form the LLC properly. It must exist and be in good standing in the state where the property is, which may mean registering as a foreign LLC.
  2. Call the lender. Ask directly whether they will consent. Get the answer in writing. Some will; some will require a refinance into a commercial loan.
  3. Call your insurer. A homeowner's policy insuring you personally may not cover a property owned by an LLC. You likely need a landlord or commercial policy.
  4. Check your title insurance. An owner's policy usually insures the named insured. Transferring to an LLC can terminate coverage. Ask the underwriter about an endorsement.
  5. Check the homestead exemption. An LLC cannot claim a homestead exemption in most states. If this is your residence, transferring it can raise your property tax bill significantly.

The transfer itself

  1. Choose the deedA quitclaim is normal for a transfer to your own entity. A special warranty deed preserves covenants and is preferred by some title companies.
  2. Name the LLC exactlyUse the full legal name as registered with the Secretary of State, including 'LLC' or 'Limited Liability Company' exactly as filed.
  3. Sign as an individualYou're the grantor personally; the LLC is the grantee. Don't sign in your capacity as a member. You're conveying property you own personally.
  4. Notarize and recordTransfer tax treatment varies. Some states exempt transfers to a wholly-owned entity; others treat it as a taxable transfer at full value. Check before you file.

What an LLC gives you

Liability separation, if you maintain it. An LLC only protects you if you treat it as a real entity: separate bank account, no commingled funds, leases in the LLC's name, and proper records. Courts pierce the veil of LLCs run as personal chequebooks, and at that point you have taken on the costs without the benefit.

Create the LLC deed

$39. The interview asks about your lender and your homestead exemption before it lets you proceed.

Common questions

They have the right to. In practice, lenders rarely accelerate a performing loan, but they can, and a few do, particularly when rates have risen. Ask first and get the answer in writing.

It depends on the state. Several exempt transfers to a wholly-owned entity where beneficial ownership does not change; others tax it at full market value, which can be thousands. Check your state's rules on the state pages before recording.

Usually no. You lose the homestead exemption in most states, you may lose your homeowner's insurance and the capital gains exclusion on sale, and the liability benefit is minimal for a home you live in. LLCs are for rentals and investment property.

Keep reading

Deedly is not a law firm

We provide self-help software and state-specific statutory forms; you make your own decisions about your property. Using Deedly does not create an attorney-client relationship, and nothing here is legal advice. If your situation is complex or contested, talk to a licensed attorney in your state.