REAL ESTATE PURCHASE CONTRACT,
PROMISSORY NOTE and DEED
If your rental property is owned by an individual, but you would like it to be owned by a business entity (for asset protection and/or some other reason), then you need to sell and deed the rental property to your business entity. To do this, you will need: (1) a business entity, (2) a purchase/sale agreement, (3) a promissory note or other lawful consideration paid by the business entity to the person who currently owns the rental property, and (4) a deed.
IMPORTANT: If you obtained a loan when you purchased the rental property, then you will need to contact the lender(s) for the rental property to see if a transfer from the owner (you) to a business entity will trigger the “due on sale” clause that appears in almost all mortgages and deeds of trust in Arizona. You will also need to check with the company that issued the title insurance for the rental property to see if your title insurance policy will automatically transfer to your business entity or whether you must purchase an endorsement.
I will draft the real estate purchase contract, promissory note, and the deed. The purchase contract and deed will transfer title of the rental property from you to your existing business entity (i.e., LLC or corporation). My fee for drafting the foregoing documents and handling the transaction until the deed is recorded is $950, plus the recording fee (approximately $25). If you do not have an LLC or corporation, I can form an LLC for you in about two weeks for an additional fee of $299 for a one-person LLC or $399 for an LLC with two or more persons (additional documents are needed for an LLC with two or more persons).
Call me today to get started: 1-602-255-0101
