The good news is that this is an easy fix. All we have to do is transfer the property’s ownership to our LLC. The county courthouse can do this for us. To do this, we must prepare a new warranty deed that conforms with the requirements within that particular state. That deed basically says that we are personally conveying ownership of the property to the LLC in exchange for consideration—maybe it’s $10. The deed must state that this transfer is subject to existing encumbrances on the property. That means we acknowledge the mortgage on the property is still valid and must be paid.
