What do I need to know about transferring real estate investment ownership?

Understanding the specifics of your real estate investment, how to monitor your investments and your responsibilities can feel overwhelming, but the Capital Square team is dedicated to our investors. Our passion is to develop and manage the future, one property at a time.

Real estate investments can be inherited, but they may also be transferred in other ways.

For your protection, a change in registration must be made in writing with notarized signatures by all current titleholders. If there is a Power of Attorney (POA) involved, a notarized copy of the POA is required.

In addition, the following documents may be required for the new account registration:

• For a Trust − A copy of the trust or, at a minimum, the pages of the trust showing the name of the trust, name of the trustee(s), name of the successor trustee(s), trustee powers and trustee dated signatures
• For a Limited Liability Company (LLC) – The LLC operating agreement
• For a Partnership – The partnership agreement
• For a Corporation – The corporate resolution
• For a Minor Individual (UGMA) – A copy of the birth certificate
• For a Qualified Plan (IRA/Roth IRA) – A letter of intent signed by the trust officer with Medallion Signature Guarantee*
• For a Profit-Sharing Plan/Pension Plan − Pages of the plan showing the name of the plan, name of the trustees and signatures

Additional document requirements for transferring real estate investment ownership:

Transfer to a Trust/New Trust:

• Letter of Instruction (LOI) or Capital Square Registration Transfer Form signed by all current titleholders (notarized signature required if adding or removing a titleholder)
• A copy of the trust or, at a minimum, the pages of the trust showing the name of the trust, name of the trustee(s), name of the successor trustee(s), trustee powers and trustee dated signatures
• W-9 with new tax ID, if applicable
• Updated banking instructions for distribution payments, if applicable

Transfer to an LLC:

• Capital Square Registration Transfer Form signed by all current titleholders and notarized
• Copy of the LLC operating agreement
• W-9 with new tax ID, if applicable
• Updated banking instructions for distribution payments, if applicable

Transfer to a Partnership:

• Capital Square Registration Transfer Form signed by all current titleholders and notarized
• Copy of the partnership agreement
• W-9 with new tax ID, if applicable
• Updated banking instructions for distribution payments, if applicable

Transfer to a Corporation:

• Capital Square Registration Transfer Form signed by all current titleholders and notarized
• Copy of the corporate resolution
• W-9 with new tax ID, if applicable
• Updated banking instructions for distribution payments, if applicable

Transfer to a UGMA:

• Capital Square Registration Transfer Form signed by all current titleholders and notarized
• Copy of the minor’s birth certificate
• W-9 with new tax ID, if applicable
• Updated banking instructions for distribution payments, if applicable

IRA to IRA Accounts Only

If you are changing the trustee or custodian on your IRA account, we require:

• Letter of Instruction or Capital Square Registration Transfer Form signed by an authorized trust officer from the resigning custodian with the Medallion Signature Guarantee*
• Letter of Instruction or Capital Square Registration Transfer Form signed by an authorized trust officer from the new custodian with the Medallion Signature Guarantee*

Note: Custodians may require their own documents in place of our registration transfer form.

*Medallion Signature Guarantees are used across the investment industry to protect shareholder accounts from unauthorized transactions. The Securities Transfer Agents Medallion Program (STAMP) is a signature guarantee program endorsed by the Securities Transfer Association (STA) and recognized by securities industry participants in the United States and Canada.

Medallion Signature Guarantees may be available from the following institutions where you have an account:

• Broker/Dealer firms
• Domestic banks
• Credit unions
• Trust companies
• Clearing agencies

After the real estate investment registration has been legally transferred into my name, what do I need to monitor or otherwise do?

You will receive regular reports about your real estate investment from the Capital Square investor relations team. In addition to these communications, you must include your real estate investments when you do your taxes. All tax information is available to you and your financial advisor through the Capital Square investor portal.

Where can I learn more about my real estate investment?

Details about your specific investment(s) are found in the applicable Private Placement Memorandum (PPM), which will detail property details, distribution schedules and much more. This PPM was shared at the time of the initial investment but can also be found in the Capital Square investor portal. Please note that DSTs and opportunity zone fund investments are illiquid investments with an anticipated hold period of 7 to 10 years. 

Do you have questions about your tax-advantaged real estate investment with Capital Square? Our investor relations team is here to help. Contact us today.

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Disclosure: Securities offered through WealthForge Securities, LLC, Member FINRA/SIPC. Capital Square and WealthForge Securities, LLC are separate entities. There are material risks associated with investing in DST properties and real estate securities including illiquidity, tenant vacancies, general market conditions and competition, lack of operating history, interest rate risks, the risk of new supply coming to market and softening rental rates, general risks of owning/operating commercial and multifamily properties, short term leases associated with multi-family properties, financing risks, potential adverse tax consequences, general economic risks, development risks, long hold periods, and potential loss of the entire investment principal. Past performance is not a guarantee of future results. Potential cash flow, returns and appreciation are not guaranteed. IRC Section 1031 is a complex tax concept; consult your legal or tax professional regarding the specifics of your particular situation. This is not a solicitation or an offer to see any securities. Please read the Private Placement Memorandum (PPM) in its entirety, paying careful attention to the risk section prior to investing. Diversification does not guarantee profits or protect against losses. Private placements are speculative.