Entity transfers - selling the LLC that owns the property rather than the property itself - can avoid transfer taxes, mortgage recording tax, and title insurance costs. However, they carry significant risks: the buyer inherits all entity liabilities, lender consent may be required, and some buyers or their attorneys reject entity purchases outright due to unknown liability exposure. The tax savings must be weighed carefully against reduced buyer pool size and legal complexity.
From the seller playbook: Selling Through an LLC or Trust
This is general information, not legal, tax or accounting advice. Every situation is different. Talk to a licensed attorney, accountant or tax professional before you act.
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