Property Ownership
What is a Nevada LLC's liability protection in real estate ownership?
AAn LLC provides no liability protection for real estate holdings
BHolding real estate in a Nevada LLC separates the property owner's personal assets from liability arising from the property, protecting personal wealth from property-related lawsuits✓ Correct
CLLC protection only applies to commercial properties
DNevada LLCs are required for all investment property purchases
Explanation
Holding investment real estate in a Nevada LLC (or other entity) separates personal assets from property-related liabilities (slip-and-fall lawsuits, environmental claims, tenant claims). Nevada has favorable LLC laws, making it popular for real estate investors seeking asset protection and tax flexibility.
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Key Terms to Know
Chain of Title
The sequential record of all transfers of ownership for a piece of property from the original patent holder to the present owner.
Private Mortgage Insurance (PMI)Insurance required by lenders on conventional loans with less than 20% down payment, protecting the lender — not the borrower — against default.
1031 ExchangeA tax-deferred exchange allowing investors to sell one investment property and reinvest proceeds in a like-kind property while deferring capital gains taxes.
DeedA written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).
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