Deeding a property into an LLC seems like a quick formality, but in Florida several consequences can catch owners off guard. Here is what to look at before you sign.
Documentary stamp tax
Florida charges documentary stamp tax on deeds. If the property you transfer to the LLC carries a mortgage, the tax is generally calculated on the outstanding loan balance—an expense many owners don’t anticipate.
Your mortgage’s due-on-sale clause
Most mortgages let the lender demand full repayment if the property is transferred. Moving it into an LLC can technically trigger this “due-on-sale” clause, so it is worth addressing with your lender first.
Title, insurance, and homestead
You will want to update the title insurance and property insurance to the LLC, and never transfer a homestead—doing so forfeits its protections. A properly prepared deed and a check of these items keeps the transfer clean. Contact Hochberger Law before you record anything.
This article is general information about Florida law, not legal or tax advice. Please consult a Florida attorney about your specific circumstances.