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The speaker emphasizes a common mistake in transferring property into a limited liability company (LLC): using a quit claim deed. They advise against this because quit claim deeds lack warranties, meaning they don't effectively transfer ownership. Using this form may signal to third parties that the individual is still associated with the property, potentially affecting liability. In contrast, when acquiring property, individuals typically receive a warranty deed, which provides stronger assurance of ownership. The speaker highlights that only parties familiar with the individual would accept a quit claim deed, making it an unsuitable choice for these transactions.
