How do I transfer a property from my personal name to my LLC using a quitclaim deed? – North Carolina

Short Answer

In North Carolina, transferring real estate from an individual to an LLC by quitclaim deed usually means (1) preparing a deed that correctly names the individual as grantor and the LLC as grantee, (2) signing it with the required formalities and notarization, and (3) recording it with the Register of Deeds in the county where the property is located. The Register of Deeds will also require transfer-reporting information on the deed, and the transfer may trigger North Carolina excise tax based on the value/consideration stated. Even though a quitclaim deed can transfer whatever ownership interest exists, it does not provide warranties of title, so it is important to confirm lender, title, and insurance issues before recording.

Understanding the Problem

In North Carolina real estate practice, the single decision point is: can an owner move title from an individual name into an LLC by signing and recording a quitclaim deed. The actor is the current owner (the grantor) who wants the LLC (the grantee) to become the record owner. The action is preparing, signing, notarizing, and recording a deed in the county Register of Deeds where the property sits, with the right identifying information for the parties and the property. The key timing trigger is the recording step, because the public land records do not reflect the LLC as owner until the deed is recorded.

Apply the Law

North Carolina generally allows an owner to convey real property to another legal “person,” including a business entity such as an LLC, by executing and recording a deed. A quitclaim deed is a type of deed that transfers whatever interest the grantor has (if any) without promising that the title is clear. The deed is recorded in the county Register of Deeds where the property is located, and the Register of Deeds may require certain transfer-reporting information and may collect excise tax before recording.

Key Requirements

Correct parties and legal names: The deed must list the current owner as the grantor and the LLC as the grantee using the LLC’s exact legal name (and typically its mailing address) so the land records clearly show who owns the property after recording.
Accurate legal description: The deed must include the property’s legal description (often copied from the prior recorded deed) so the transfer applies to the correct parcel.
Proper execution and recording: The grantor must sign the deed with the required formalities (including notarization), and the deed must be recorded with the Register of Deeds in the county where the property is located, along with any required transfer information and applicable taxes/fees.

What the Statutes Say

N.C. Gen. Stat. § 105-228.30 (Real property excise tax) – Imposes an excise tax on instruments conveying an interest in real property, generally based on the consideration or value, and requires payment before recording.
N.C. Gen. Stat. § 105-317.2 (Transfer report information in deeds) – Requires specific transfer-reporting information to be included in deeds conveying property to help with tax appraisal (and notes that noncompliance does not invalidate an otherwise duly recorded deed).
N.C. Gen. Stat. § 161-31 (Tax certification in certain counties) – Allows certain counties to require a tax certification before the Register of Deeds accepts a deed for recording, with an attorney-supervised closing exception described in the statute.

Analysis

Apply the Rule to the Facts: Here, the goal is to move record ownership from an individual into an LLC in North Carolina. That typically satisfies the “correct parties” element if the deed lists the individual as grantor and the LLC (with its exact legal name and address) as grantee. It satisfies the “accurate legal description” element if the deed uses the same legal description as the last recorded deed. It satisfies the “proper execution and recording” element once the deed is signed, notarized, any required transfer-reporting information is included, any required tax certification is handled (if applicable in the county), excise tax (if due) is paid, and the deed is recorded with the county Register of Deeds.

Process & Timing

Who files: The grantor or the grantor’s closing professional. Where: The Register of Deeds in the North Carolina county where the property is located. What: A quitclaim deed transferring the property from the individual to the LLC, with the property’s legal description and the transfer-reporting information typically required on deeds. When: As soon as the deed is properly executed and ready to record; recording is the step that updates the public record.
Recording review and payment: The Register of Deeds reviews the submission for recordability, collects recording fees, and—when applicable—collects the North Carolina excise tax before recording. In some counties, the Register of Deeds may also require tax certification (or an attorney-supervised closing statement that fits the statutory exception) before accepting the deed for recording.
After recording: The Register of Deeds records the deed and returns a recorded copy (or provides access to the recorded image). The recorded deed becomes the key document showing the LLC as the record owner in the county land records.

Exceptions & Pitfalls

Mortgage and “due-on-sale” risk: A deed transfer to an LLC can violate loan terms or trigger a lender’s due-on-sale clause, even when the same person controls the LLC. Many owners confirm lender requirements before recording.
Quitclaim deed limits: A quitclaim deed does not promise clear title. If the goal is to reassure future buyers, lenders, or title insurers, a different deed type or additional title work may be needed.
Excise tax and stated value: North Carolina can impose excise tax based on the consideration or value stated in the deed. Incorrectly stating consideration/value or misunderstanding exemptions can delay recording or create later problems.
County-specific recording gatekeepers: Some counties require tax certification before recording unless the statutory attorney-supervised closing exception applies. Planning for this avoids a rejected recording.
LLC naming and authority issues: Using an incorrect LLC legal name, omitting an address, or signing in the wrong capacity can create title problems that are expensive to fix later.

Conclusion

In North Carolina, an owner can usually transfer real property from an individual name to an LLC by preparing a quitclaim deed that correctly identifies the grantor and the LLC grantee, includes the correct legal description, and is properly signed, notarized, and recorded with the Register of Deeds in the county where the property is located. The transfer may require deed transfer-reporting information and may trigger excise tax. The next step is to record the executed deed with the county Register of Deeds as soon as it is ready.

Talk to a Real Estate Attorney

If a property transfer to an LLC is on the table, a real estate attorney can help confirm the right deed, avoid lender and title problems, and make sure the deed is recordable in the correct North Carolina county. Call us today at 919-341-7055.

Disclaimer: This article provides general information about North Carolina law based on the single question stated above. It is not legal advice for your specific situation and does not create an attorney-client relationship. Laws, procedures, and local practice can change and may vary by county. If you have a deadline, act promptly and speak with a licensed North Carolina attorney.