{"id":10772,"date":"2018-08-04T09:03:03","date_gmt":"2018-08-04T16:03:03","guid":{"rendered":"https:\/\/www.keytlaw.com\/azllclaw\/?p=10772"},"modified":"2019-07-25T13:11:02","modified_gmt":"2019-07-25T20:11:02","slug":"title-insurance","status":"publish","type":"post","link":"https:\/\/www.keytlaw.com\/azllclaw\/2018\/08\/title-insurance\/","title":{"rendered":"Title Insurance for an LLC that Acquires Real Estate from a Member"},"content":{"rendered":"<p style=\"text-align: justify;\"><strong>Question<\/strong>:\u00a0 I own Arizona rental real estate.\u00a0 I want to form a limited liability company to own the real estate for asset protection.\u00a0 If I transfer title to the real estate to my one hundred percent owned Arizona LLC will the LLC be covered by the title insurance policy issued to me when I bought the land?<\/p>\n<p style=\"text-align: justify;\"><strong>Answer<\/strong>:\u00a0 No unless you take action that causes the title insurance company to add the LLC to your title insurance policy.\u00a0 As a real estate attorney I recommend that the owner(s) of the LLC always do what is necessary to cause the LLC to be covered by the title insurance when the LLC acquires real estate from the owner(s) of the LLC.<\/p>\n<p style=\"text-align: justify;\">A nationally recognized title insurance expert named John C. Murray wrote an excellent article called \u201cTitle Insurance For Limited Liability Company Transactions\u201d in which he says:<\/p>\n<blockquote>\n<p style=\"text-align: justify;\">\u201cThe best solution may be for the grantee LLC to request an &#8216;additional insured&#8217; endorsement from the title insurer (in those jurisdictions where it is available), which would be effective as of the date of the conveyance. This endorsement specifically amends the existing owner&#8217;s policy to add the LLC as a named insured. The cost of the endorsement is usually nominal ($100 to $300) and many title insurers will routinely issue the endorsement for successor LLCs\u201d<\/p>\n<\/blockquote>\n<p style=\"text-align: justify;\">See also the Adobe pdf file that contains an article called \u201c<a href=\"http:\/\/www.titlecorockies.com\/LinkClick.aspx?fileticket=mN3LQ2oyrTs%3D&amp;tabid=426&amp;mid=3051\" target=\"_blank\" rel=\"noopener noreferrer\">Do I still have Coverage if I transfer my property to<\/a>.&#8221;\u00a0 The author states the following with respect to a property owner who transfers land to the owner&#8217;s LLC:<\/p>\n<blockquote>\n<p style=\"text-align: justify;\">\u201cTo ensure that title insurance coverage continues on the property, [the owner] should contact [the title insurance company] to discuss obtaining an additional insured endorsement to the current policy and\/or discuss obtaining a new policy depending on the facts and circumstances supporting the transfer. Without doing that, they risk terminating title insurance coverage on the property.\u201d<\/p>\n<\/blockquote>\n","protected":false},"excerpt":{"rendered":"<p>Question:\u00a0 I own Arizona rental real estate.\u00a0 I want to form a limited liability company to own the real estate for asset protection.\u00a0 If I transfer title to the real estate to my one hundred percent owned Arizona LLC will the LLC be covered by the title insurance policy issued to me when I bought the land? Answer:\u00a0 No unless you take action that causes the title insurance company to add the LLC to your title insurance policy.\u00a0 As a real estate attorney I recommend that the owner(s) of the LLC always do what is necessary to cause the LLC to be covered by the title insurance when the LLC acquires real estate from the owner(s) of the LLC. A nationally recognized title insurance expert named John C. Murray wrote an excellent article called \u201cTitle Insurance For Limited Liability Company Transactions\u201d in which he says: \u201cThe best solution may be for the grantee LLC to request an &#8216;additional insured&#8217; endorsement from the title insurer (in those jurisdictions where it is available), which would be effective as of the date of the conveyance. This endorsement specifically amends the existing owner&#8217;s policy to add the LLC as a named insured. The cost of the endorsement is usually nominal ($100 to $300) and many title insurers will routinely issue the endorsement for successor LLCs\u201d See also the Adobe pdf file that contains an article called \u201cDo I still have Coverage if I transfer my property to.&#8221;\u00a0 The author states the following with respect to a property owner who transfers land to the owner&#8217;s LLC: \u201cTo ensure that title insurance coverage continues on the property, [the owner] should contact [the title insurance company] to discuss obtaining an additional insured <a href=\"https:\/\/www.keytlaw.com\/azllclaw\/2018\/08\/title-insurance\/\"> [&#8230;]<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"footnotes":""},"categories":[8,20],"tags":[],"class_list":["post-10772","post","type-post","status-publish","format-standard","hentry","category-faqs","category-real-estate"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.7 (Yoast SEO v28.0) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Title Insurance for an LLC that Acquires Real Estate from a Member - Arizona LLC Law %<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.keytlaw.com\/azllclaw\/2018\/08\/title-insurance\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Title Insurance for an LLC that Acquires Real Estate from a Member\" \/>\n<meta property=\"og:description\" content=\"Question:\u00a0 I own Arizona rental real estate.\u00a0 I want to form a limited liability company to own the real estate for asset protection.\u00a0 If I transfer title to the real estate to my one hundred percent owned Arizona LLC will the LLC be covered by the title insurance policy issued to me when I bought the land? Answer:\u00a0 No unless you take action that causes the title insurance company to add the LLC to your title insurance policy.\u00a0 As a real estate attorney I recommend that the owner(s) of the LLC always do what is necessary to cause the LLC to be covered by the title insurance when the LLC acquires real estate from the owner(s) of the LLC. A nationally recognized title insurance expert named John C. Murray wrote an excellent article called \u201cTitle Insurance For Limited Liability Company Transactions\u201d in which he says: \u201cThe best solution may be for the grantee LLC to request an &#8216;additional insured&#8217; endorsement from the title insurer (in those jurisdictions where it is available), which would be effective as of the date of the conveyance. This endorsement specifically amends the existing owner&#8217;s policy to add the LLC as a named insured. The cost of the endorsement is usually nominal ($100 to $300) and many title insurers will routinely issue the endorsement for successor LLCs\u201d See also the Adobe pdf file that contains an article called \u201cDo I still have Coverage if I transfer my property to.&#8221;\u00a0 The author states the following with respect to a property owner who transfers land to the owner&#8217;s LLC: \u201cTo ensure that title insurance coverage continues on the property, [the owner] should contact [the title insurance company] to discuss obtaining an additional insured [...]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.keytlaw.com\/azllclaw\/2018\/08\/title-insurance\/\" \/>\n<meta property=\"og:site_name\" content=\"Arizona LLC Law\" \/>\n<meta property=\"article:publisher\" content=\"http:\/\/www.facebook.com\/keytlaw\" \/>\n<meta property=\"article:author\" content=\"http:\/\/www.facebook.com\/keytlaw\" \/>\n<meta property=\"article:published_time\" content=\"2018-08-04T16:03:03+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2019-07-25T20:11:02+00:00\" \/>\n<meta name=\"author\" content=\"Richard Keyt\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Richard Keyt\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.keytlaw.com\\\/azllclaw\\\/2018\\\/08\\\/title-insurance\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.keytlaw.com\\\/azllclaw\\\/2018\\\/08\\\/title-insurance\\\/\"},\"author\":{\"name\":\"Richard Keyt\",\"@id\":\"https:\\\/\\\/www.keytlaw.com\\\/azllclaw\\\/#\\\/schema\\\/person\\\/9d6c74d30296559f95e238fa25182391\"},\"headline\":\"Title Insurance for an LLC that Acquires Real Estate from a Member\",\"datePublished\":\"2018-08-04T16:03:03+00:00\",\"dateModified\":\"2019-07-25T20:11:02+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.keytlaw.com\\\/azllclaw\\\/2018\\\/08\\\/title-insurance\\\/\"},\"wordCount\":332,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\\\/\\\/www.keytlaw.com\\\/azllclaw\\\/#organization\"},\"articleSection\":[\"FAQs\",\"Real Estate Issues\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/www.keytlaw.com\\\/azllclaw\\\/2018\\\/08\\\/title-insurance\\\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.keytlaw.com\\\/azllclaw\\\/2018\\\/08\\\/title-insurance\\\/\",\"url\":\"https:\\\/\\\/www.keytlaw.com\\\/azllclaw\\\/2018\\\/08\\\/title-insurance\\\/\",\"name\":\"Title Insurance for an LLC that Acquires Real Estate from a Member - Arizona LLC Law %\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.keytlaw.com\\\/azllclaw\\\/#website\"},\"datePublished\":\"2018-08-04T16:03:03+00:00\",\"dateModified\":\"2019-07-25T20:11:02+00:00\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/www.keytlaw.com\\\/azllclaw\\\/2018\\\/08\\\/title-insurance\\\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/www.keytlaw.com\\\/azllclaw\\\/2018\\\/08\\\/title-insurance\\\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/www.keytlaw.com\\\/azllclaw\\\/2018\\\/08\\\/title-insurance\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/www.keytlaw.com\\\/azllclaw\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Title Insurance for an LLC that Acquires Real Estate from a Member\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/www.keytlaw.com\\\/azllclaw\\\/#website\",\"url\":\"https:\\\/\\\/www.keytlaw.com\\\/azllclaw\\\/\",\"name\":\"Arizona LLC Law\",\"description\":\"Information about Forming &amp; 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