Some real estate investors and families hold property through a limited liability company (LLC). However, selling an LLC-owned property involves more than finding a buyer. First, we must confirm who has the legal authority to sign the listing agreement, purchase contract, and other required documents.
Owning part of an LLC does not automatically give someone the authority to sell its property. The company’s operating agreement and organizational documents determine who can make these decisions.
Before listing the property, we will work with the appropriate company representative to verify that authority. We will also review the relevant documents and determine whether the company must formally approve the sale. For example, some LLCs may require a written resolution authorizing the transaction. Others may follow different procedures based on their operating agreements.
Why does this matter? If the wrong person signs the contract or the company fails to provide the required documentation, the transaction could face delays. The title company or escrow officer may require additional paperwork before closing can proceed.
Therefore, I recommend addressing these questions before accepting an offer. By confirming the proper authority early, we can help prevent unnecessary complications and keep the sale moving forward. When selling real estate owned by an LLC, preparation is essential. Our goal is to identify potential issues early, coordinate with the appropriate professionals, and help make the transaction as smooth as possible.
