How to Transfer Title of Property From Myself to LLC: Deed, Title, and Other Key Considerations

 Posted on June 13, 2025 in Real Estate

When it comes time to contribute personally owned real estate into your LLC, there are key legal steps and practical considerations that must be followed to ensure a proper transfer of title and risk management for both the individual and the LLC. The process involves more than simply recording a deed—it must be done in a manner that protects your interests and complies with lender requirements, lease obligations, and title insurance coverage.

Form the LLC and Obtain an EIN

Before you can transfer title to your LLC, you must properly form the LLC with the Virginia State Corporation Commission and obtain an Employer Identification Number (EIN) from the IRS. This establishes the LLC as a legal entity capable of holding title to real estate.

Draft and Record Deed of Gift

A Deed of Gift is commonly used when contributing property to an LLC without receiving payment. This deed must clearly identify the grantor (you) and grantee (your LLC), with proper legal descriptions of the property. The deed must be executed, notarized, and recorded in the land records of the county or city where the property is located.

BE CAREFUL: Due on Sale Clause

Before recording any deed, it is CRITICAL to review your existing Deed of Trust (mortgage). Most Deeds of Trust contain a Due on Sale Clause, which allows the lender to call the entire loan due if title is transferred to another entity—including your LLC.

Transferring property to an LLC may trigger this clause unless your lender has expressly waived it or provided written consent. Do not skip this step. Read your Deed of Trust carefully or consult a real estate attorney to analyze your risk.

LLC Member Resolution to Accept Property

The LLC’s members (or sole member) should pass a formal resolution authorizing the LLC to accept title to the property. This resolution should include:

• Acknowledgment of the contribution of property;

• Authorization to record the deed;

• Instructions to update lease and title insurance documents, if applicable.

This resolution should be kept in the LLC’s corporate records.

Assignment of Leases to LLC

If the property is tenant-occupied, the existing lease agreement is between you (as individual owner) and the tenant. To maintain legal continuity, the lease should be formally assigned to the LLC:

• Draft an Assignment of Lease agreement, signed by both you and the LLC.

• Provide a Notice of Assignment of Lease to all tenants, advising them that rent will now be payable to the LLC and that the LLC is their new landlord.

This protects the enforceability of the lease under the new ownership.

Update Title Insurance

Finally, contact your title insurance company and request an endorsement or modification to add the LLC as an additional insured party on your existing title policy.

Without this step, your LLC may not be covered under your current title insurance policy—potentially exposing it to future title risks. The endorsement ensures the LLC is protected as the new record owner.

Closing Thoughts

While the process appears simple on the surface, there are hidden landmines—particularly around the due on sale clause, lease assignment, and title insurance continuity. Each of these areas requires careful planning to avoid unexpected consequences.

Your Virginia Real Estate Lawyers at Fox & Moghul are ready to guide you through every aspect of transferring property into your LLC, ensuring your transaction is secure and compliant. Call us at 703-652-5506 today to set up a consultation.