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The video emphasizes a crucial mistake people make when transferring property to their limited liability company (LLC): using a quitclaim deed. A quitclaim deed is inadequate for this purpose as it does not provide any warranties regarding the property transfer. It signals to third parties that the person behind the LLC is still the owner, even if their name is not on the deed. When acquiring property, individuals typically receive a warranty deed, which affirms the seller's claims about the property. Consequently, using a quitclaim deed may lead to complications, as only the original owner would accept such a deed. It's essential to use proper deed forms for clarity and security in property transactions.