In my experience as a real estate attorney, clients frequently inquire about transferring ownership of properties, both residential and commercial, while a loan is still encumbering the property. It's essential to recognize that such transfers may necessitate the lender's consent or could be entirely prohibited by the loan agreement. These agreements often include clauses that restrict changes in ownership to protect the lender's interests. Transferring property with an existing loan often requires lender consent due to due on sale clauses in the loan agreement.

If you plan to transfer property ownership, it is advised to contact a real estate attorney to evaluate the loan agreement. Failure to comply with its terms can have significant consequences, including the lender's right to call the loan, demanding immediate repayment. The transfer of ownership may also trigger property taxes.

Consulting a real estate attorney ensures that your actions are legally sound and do not inadvertently trigger adverse financial repercussions.