If the mortgage is still in mine name, are my personal assets protected if a condo guest decides to sue me?

Get Legal Help Today

 Secured with SHA-256 Encryption

If the mortgage is still in mine name, are my personal assets protected if a condo guest decides to sue me?

I converted my condo to a weekly vacation rental and am currently operating as a sole proprietor. I’m worried about my personal assets exposure and liability from guests and would like to create an LLC. I plan to change the insurance to the LLC. I plan to quick claim the condo deed to the LLC. I can’t refinance, so I have no way to get the mortgage out of my name.

Asked on October 18, 2011 under Real Estate Law, Montana

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

Whether or not the mortgage concerning the condominium that you wish to transfer into the name of a limited liability company for business purposes is in your name or not will have no impact upon you personally for any liability concerning the structure that you want to use for rental purposes.

The key is to transfer title into the name of a registered limited liability company, keep your own personal assets separate and apart from the limited liability company, and have adequate insurance for this venture in the entity's name. You will need to transfer title of the property into the name of this entity as well and hold regular meetings as to it concerning the organizational documents for it.

Good luck.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

 Secured with SHA-256 Encryption