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When transferring property into a limited liability company (LLC) or land trust, a common mistake is using a quit claim deed. This type of deed does not provide any warranties, meaning it doesn't truly transfer ownership in a secure manner. Instead, it signals to third parties that the person behind the business structure remains liable, even if their name is not directly associated with it. When purchasing property, individuals typically receive a warranty deed, which offers greater protection. Therefore, using a quit claim deed for such transfers can create issues, as only the original owner would willingly accept it.
