I have a situation would love to get help on. There is a piece of property owned by an LLC of which I am a member. A former member is attempting to sell this piece of property; he currently has no ownership in the LLC (assigned his share to another member). We found out by happenstance (from a neighbor
) that this sale process is underway (it is thankfully not very far along).
Here's my questions. If this person, call him Bob, goes to a real estate
agent and states he is the operating manager of this LLC and wishes to sell the property, what kind of verification would a real estate agent typically do? Would they request a copy of the Operating Agreement?
Secondly, if the real estate agent proceeded and listed the property and it sells, would this fraud be uncovered in the title search process? Would someone uncover that he is not a current member of the LLC - it seems like the only way this can be verified is through the Operating Agreement which is not filed anymore. Plus, he could produce a fake Operating Agreement?
Assuming we stop this sale process (and we will now that we know about it), what can be done to keep him from doing this again? The LLC owns several properties. Bob is desperate for money.
Last question - assuming we can prove that Bob went to the real estate agent and started the sales process on the property he does not own, can we bring criminal charges against him?
Yes, we know Bob is devious and evil. That's why he is out of the LLC. Thank you.