[DE] Can a rental property be transferred between commonly owned LLCs using a nominal consideration quitclaim deed?

DE Real Estate Law

Barrister

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Yes — you can put the consideration as $1 or $10 as a minimal amount. That indicates it isn’t a “sale,” but just a transfer of ownership without an actual sale. It isn’t a “sale” with a selling price where one LLC is selling to another. It is simply a change of ownership.

Delaware Quit Claim Deed

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I need to transfer a Delaware property into an LLC that is currently titled in a different LLC. I'm the owner of both LLC's. Can I use $10 as the price or do I have to use the actual purchase price? The attorney who handled the reverse 1031 transaction said I could just file a quit claim deed. Thanks for any insights.

Lexi, Chatbot

I understand that transferring property between LLCs can be complex. Have you already consulted with a Real Estate Lawyer about this transaction?

No.

Lexi, Chatbot

Are there any specific deadlines or time constraints you are facing regarding this property transfer?

I'd like to get it done by the end of the year for tax purposes.

Barrister

Hello and welcome to the site! My name is Barrister, and I am a licensed attorney here to help. I know your question is important, but there may be a short delay in my responses as I am typically working with several customers at once. I understand this can be frustrating and confusing.

Are you simply transferring the property, not actually selling it?

Yes, just transferring it to a different LLC. We purchased the property back in May in Delaware.

We did a reverse 1031 since we purchased this property and then later in August sold another rental property. We did not pay transfer taxes at settlement of the house we sold. We went with option #2 as the attorney called it, so I just wanted to be sure.

Barrister

Perfect! Thank you.

Barrister

You are very welcome. Glad I could help. It was my pleasure to assist you with your question. If you ever need help in the future, you can post a new question with the title “For Barrister” or add me as a favorite Expert on your “My Questions” page. Have a great afternoon and be safe!

Thank you so much! Stay well.

Barrister

Much obliged.

Barrister

65,716 satisfied customers

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