Q: With a rental property LLC, must the property title be titled in the name of the LLC? Does it matter in a lawsuit?

A: Rental Property LLC: Your question and situation are somewhat confusing to me, but I'll endeavor to make a qualified reply.

The title owner of a property is the person/entity that has "standing" in a lawsuit. Your question does not make it clear if the Rental Property is the claimant pursuing a defendant, or if the Rental Property is the defendant being pursued by a plaintiff. I am very concerned, on your behalf, however when you ask "...if the property remains in the property owners name . . . or the LLC". Which is it ? Is the property owned by an individual or is owned by the LLC ? (you mention "rent property LLC" and then you mention "the property is in the owners name" - the "owner" is whomever is on title). The law (a plaintiff's attorney) is entitled to litigate against whichever entity/person is on the title. The law also can allow the plaintiff's attorney to "pierce the veil" of an entity if the title transfer is done as a sham (i.e. a transfer from an individual to a one-owner LLC, after the purchase). The manner of holding title isn't something that can merely be shifted back-and-forth at the whim of an individual. Additionally, the mortgage lender (if there is one) will be concerned if they loaned to an individual and then that individual transferred title to an entity without approval by the lender (while lenders don't oftentimes notify that conduct as "breach of mortgage", if you examine your loan they have every right to cancel a loan when transferred without their approval). JIM GREER is an attorney licensed to practice in CO and CA and has specialized in real estate transactions for the past 30 years; nothing herein shall be construed as the offering of legal advice insofar as Mr. Greer is not in an attorney-client capacity with the inquiring party.