Does Deeding a Florida House to an LLC Remove the Mortgage?

No. A deed to an LLC transfers the owner's interest. It does not pay off the mortgage, release the lien, or take the grantor off the note.

The mortgage stays of record until the lender records a release. The deed is not that release. The estoppel letter and the 60-day satisfaction rule are in clearing a judgment, tax lien, or old mortgage. This page does not retell that payoff.

How a buyer or an LLC takes title on a purchase is a different article. Read how Florida buyers take title. A deed into a trust is also different. Read how to put a Florida home into a trust.

The note may give the lender a due-on-sale right when the owner deeds the property away. 12 U.S.C. § 1701j-3 is the Garn-St. Germain Act. It defines a due-on-sale clause as a contract term. That term lets the lender, at its option, declare the sums secured due if the property, or an interest in it, is sold or transferred without the lender's prior written consent.

For a loan secured by residential real property containing less than five dwelling units, that section lists transfers where the lender may not exercise the clause. The list includes a transfer where the spouse or children of the borrower become an owner. It includes a transfer into an inter vivos trust in which the borrower is and remains a beneficiary and which does not relate to a transfer of rights of occupancy. A deed to an LLC is not one of those listed exemptions. The lender may have the right to call the loan.

We do not decide whether the lender will enforce it. The owner should ask the lender before signing. A deed to an LLC is not automatically accelerated. We do not set an approval process or a fee.

The owner's title policy insures the named insured. After a deed to an LLC, the LLC is a different party. The old policy does not automatically cover the LLC. Read what title insurance is in Florida and owner's versus lender's title insurance.

Documentary stamp tax is its own article. The published rule is 70 cents per $100 in most counties, and consideration can include a mortgage balance. Read how Florida documentary stamp tax works on a deed. We do not decide on this page whether this deed is exempt. We quote the stamp tax on the file.

We do not decide whether the homestead exemption still applies after the deed. Read the Florida homestead exemption after closing. If the house is homestead, a spouse may still have to join the deed. That signature rule is why both spouses often must sign. This page does not quote an exemption amount.

We do not form the LLC. The person who signs for the LLC has to have authority. Ask for the document that shows who can sign. If that document is unclear, the question belongs with the person who formed the company or with that company's attorney.

Time to Close Title prepares the deed from the legal description and the names you confirm. A street address is not the legal description. See quitclaim deeds when the file is a deed we only prepare. On a deed we only prepare, and there is no sale closing, the client records it. On a sale we close, we submit the deed after good funds.

Confirm any wire by calling (352) 792-1214. Do not use an account number that arrived only by email. The office is at 3087 Anderson Snow Road, Spring Hill, FL 34609. Call (352) 792-1214 or toll-free 888-228-0555. Email info@TimetoCloseTitle.com. Hours are Monday through Friday, 9:00 AM to 5:00 PM. Hernando Official Records are in Brooksville. Pasco records are in Dade City and New Port Richey. Citrus records are in Inverness. The Spring Hill office is not the clerk. Contact the office.