Landlord liability when tenant conducts approved child care business.

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Landlord liability when tenant conducts approved child care business.

Rental is a single family residence in Montgomery, AL. I now live in Texas. Tenant is licensed and insured to operate a child care facility. The house has been inspected and approved by the city. I am planning to establish a Limited Liability Company and quit claim the house into it. Do I need liability protection from the parents of the children being cared for? Should I get the tenant to obtain release of liability statements for me and send me copies to file?

Asked on May 16, 2009 under Real Estate Law, Alabama

Answers:

J.M.A., Member in Good Standing of the Connecticut Bar / FreeAdvice Contributing Attorney

Answered 14 years ago | Contributor

If you are the owner landlord, you do not need permission to quit claim you house into a limited liability company. However, I suggest that you make sure that your homeowner's insurance is switched into the LLC's name in the event of any problem with the property.  You dont need the parents of the child or the day care facility tenant's permission as i said.  After you QC the deed and transfer the insurance into the LLC, you are all set.  You also want to make sure there is an assigment of the leases from you to the LLC.  Your lawyer can help you with that.  I suggest obtaining a lawyer to do this transaction.


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