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Richard
Richard, Lawyer
Category: Real Estate Law
Satisfied Customers: 54009
Experience:  32 years of experience as lawyer in Texas. I'm also a Real Estate developer.
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I am a licensed Realtor representing a buyer in the District

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I am a licensed Realtor representing a buyer in the District of Columbia. The buyer is purchasing a house that the title is currently held by an LLC. We are planning for settlement tomorrow, and just learned that the seller may not have an operating agreement to provide to the Title Company at settlement. The lender wants to make sure that the person signing the documents at settlement on behalf of the LLC is authorized to do so. What are options for the buyer if there really isn't an operating agreement? Does that mean that the LLC can not sell the property if there's no operating agreement?
Welcome! My goal is to do my very best to understand your situation and to provide a full and complete answer for you.

Good afternoon. If the seller does not have an operating agreement, you should ask the buyer to provide: i) the 2012 tax return...either Form 1065 or the taxpayer's Form 1040 to indicate the ownership. It's likely it's a single-member entity and reported solely on the seller's Form 1040; and ii) an Affidavit from the owners of the LLC as indicated by the tax return that they are the owners of the LLC and have consented to the sale of the property pursuant to the contract between you and the LLC.




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Customer: replied 3 years ago.


The company (seller) is actually a large very well known company in this area complete with television commercials that bought the property and then at the same time formed the LLC to hold the title in. I will ask the seller to provide the items you mentioned although your response said ask the "buyer" I knew you meant "seller". :-)


 


Thank you for your response!

Thanks so much for following up...and I apologize for the typo! You're welcome...it's my pleasure to help!
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Thanks so much for the positive rating and bonus! I appreciate your kindness and the opportunity to serve you! If I can be of assistance to you in the future, just look me up and I will be happy to help!

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