Hello xmanx,
Thank you for your interesting question.
First of all, from the way I understand it, with you moving an
assignment of rights document for your 50% share to the LLC's name,
that would give you 25% of the property ownership and give your
partner 75% ownership. Perhaps I'm misunderstanding you. In any case,
an assignment of rights is not the best or most efficient way to
accomplish what you want (50% claim to the property) and I have a
better solution for you.
The assignment of rights situation will unfortunately not work in the
way you want it to. If your partner issued an assignment of rights to
you, he would no longer own any part of it. He would have to issue
100% interest of the property to you and not retain any interest in
the property himself. It is an interesting phenomenon, but that is
how assignment of rights contracts work (you sign all your rights
away). You can't just sign away part of your rights. A court case
and statutes dealing with this can be seen here:
Neuharth Court Case
http://www.sdb.uscourts.gov/Decisions/1999Decisions/1999%20-09%20neuharth.htm
If you sign an assignment of rights to the LLC for your own interest
in the property, the LLC would own it and not yourself (and presuming
that you own 50% of the LLC, you would then own 25% of the property).
Simply having your partner transfer the title to include your name
would be much more efficient.
What you should do instead is just simply execute a title transfer, or
even easier, a quit claim deed. This is simple. Have him add you to
the title or transfer the title to the LLC's name. This can be done
at the Maricopa County recorder's office. It is possible that your
partner's mortgage company will not allow title to be transferred to
an LLC (because the LLC can write off bad debt and a person cannot
short of bankruptcy). If so, he can add you to the title in a title
transfer and you can both own the property in the LLC. If you execute
an assignment of rights to the LLC, the mortgage company still may not
agree to include the LLC on the title, and your partner would still
have 50% interest in the property, along with the LLC's 50%. It would
be much more efficient to simply transfer the title. Your partner
could also sell the company to the LLC.
I can see from my colleague Hummer-ga's fine answer to this Google
Answers question:
http://answers.google.com/answers/threadview?id=586021
that a quit claim deed is the best way to transfer property from an
individual to an LLC. Your partner should take out a quit claim deed,
transferring all his interest in the property to the LLC that both you
and he are part of.
Google Answers is not a substitute for legal advice, as the disclaimer
below states. However, I hope my research on this matter has helped
you. I wish you the best of luck.
Sources:
Wikipedia Entry-- Assignment
http://en.wikipedia.org/wiki/Assignment_(law)
Hummer-ga
"Transferring a Deed Into an LLC"
http://answers.google.com/answers/threadview?id=586021
Search terms:
assignment of rights property
assignor not retain interest property
transfer property title arizona
transfer property arizona
transfer property llc
If you need any additional clarification, let me know and I'll be glad
to assist you.
--keystroke-ga |
