Coastal San Diego · Buyer guides · Ownership

Buying a home in a trust or company (LLC) in San Diego

Short answer: Some buyers want to buy in a trust or a company name. That choice can affect the loan, the title insurance (the policy that protects ownership) and property taxes. A living trust is common for a home you live in. A company, like a limited liability company (LLC), adds more steps. Ask your attorney or CPA (a licensed tax accountant) first.

When a buyer tells me they want a company or trust on the deed, I ask one question: have you talked to your attorney or CPA yet? The right answer depends on your goals, not on the house.

This guide covers what changes in the purchase process. It is for buyers in La Jolla and around coastal San Diego.

I’m Weston Clark, Founding Member of the Dickinson-Clark Team at Compass. I help buyers in coastal San Diego plan the paperwork side of a purchase so nothing surprises them late. You can talk about fees with Weston directly. This form does not give a commission quote.

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Buying in a living trust

A living trust is a legal plan that holds property for you now and passes it on later. Many buyers take title in their own trust from the start.

Lenders often have their own rules for loans to a trust. Ask your lender early what papers it needs. The title company will want a copy or summary of the trust too.

Buying in a company

An LLC is a company that can own property apart from its owners. Buying in an LLC is a bigger change than a trust.

Many home loans are made to people, not companies. A company may need a different kind of loan.
The title company will ask for the company papers and who can sign.
Title insurance (a policy that protects ownership) names who is covered. Ask the title officer how it works for a company.

Property taxes and the company

In California, a purchase usually resets the home’s taxable value, whoever buys it. Later changes inside a company can matter too.

California Revenue and Taxation Code section 64(a) says, in part, that “the purchase or transfer of ownership interests in legal entities, such as corporate stock or partnership or limited liability company interests, shall not be deemed to constitute a transfer of the real property of the legal entity.”

Another part of the same section says that when one person or company gains control of more than half of the company, that can count as a change in ownership. Ask your CPA how this applies. My property taxes guide covers the basics.

How I help you get ready

We name the buyer correctly on the offer from day one.
Your attorney sets up the trust or company before we write the offer.
We tell the lender and the title company early.
For larger loans, my jumbo loan guide helps you plan.

When it is time to sell

A trust or company can sell later, with the right signer. My trust sale guide shows how a trust sale runs. My title insurance guide covers what the title company checks.

General information only

This guide explains process. It is not legal, tax or lending advice. Ask your attorney or CPA before you choose a trust or company.

FAQ

Can I buy a San Diego home in a living trust?

Many buyers do. Ask your lender early what trust papers it needs, and expect the title company to ask for them too.

Can I buy a home in an LLC?

You can, but it adds steps. Many home loans go to people, not companies, and the title company will ask for the company papers.

Does buying in an LLC change my property taxes?

A purchase usually resets taxable value either way. Later changes in who controls the company can also count as a change in ownership. Ask your CPA.

What does section 64 of the California tax code say?

Part of it says that buying or selling interests in a company is not, by itself, a transfer of the company's real property. Another part covers when control of the company changes.

When should I set up the trust or company?

Before we write the offer, so the buyer is named correctly from the start. Your attorney handles the setup.

Is this trust or LLC buying guide legal advice?

No. It's general information about process. It's not legal, tax or lending advice.

Talk with Weston about buying in a trust or company

Tell me who you want on title and why. I’ll help you line up the lender, title and your advisors in the right order.

Or call (858) 997-8998 · weston@sandiego.homes · Search on Compass

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Sources

Weston Clark · Founding Member of the Dickinson-Clark Team at Compass · (858) 997-8998 · weston@sandiego.homes

Weston Clark, DRE #02122466 · Compass, DRE #01527365

Compass is a real estate broker licensed by the State of California and abides by Equal Housing Opportunity laws. All material presented herein is intended for informational purposes only, compiled from sources deemed reliable but not verified. Changes in price, condition, sale or withdrawal may be made without notice. All measurements and square footage are approximate.

⌂ Equal Housing Opportunity. This page is general information about places and process — not legal, tax, title, insurance, lending, or financial advice. Tax and loan rules depend on your situation. Confirm with your own attorney, CPA and lender. Brokerage compensation is discussed directly with Weston for the specific transaction.