|
I agree with the above comments. I think Randy P et. al. pretty much nailed it.
A prelim without a new title policy is pretty much useless. But if you have a real estate co, you can get them done for free. A prelim only shows exceptions to the title policy, which ensures your fee simple absolute deed is free of exceptions. There are levels of insurance, with ALTA survey being the most thorough.
I think the issue is transfer tax. If she's basically selling it to herself, then she can be double taxed, and if she partners with you, then she pays double capital gains unless she sells at a loss. She can just deed it to the LLC perhaps. The idea is to defer taxes. To the extent that the LLC has substantial assets, not sure if you are really insulating yourself from potential loss at all unless you form a single asset entity.
|