Mary Clifton, Personal Representative of the Estate of Adaire A. Toms, Deceased, to Michael L. Northup and Victoria L. Northup, husband and wife, joint tenants,
Real Estate: Transfer a residential property to a corporation in CA?
Most deeds of trust in CA prohibit a sale or transfer of the mortgaged property without the consent of the lender. So, as Mike correctly notes, call the lender and see what they need to accomplish this. At a minimum, you can expect to have to guarantee any assumption of the loan by the Newco.
On a different note, conventional wisdom says that you should transfer real property to an LLC and not a corporation. If the real property appreciates, you can typically distribute it back to yourself without incurring taxable gain, but the same may not be the case with a corporation.
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