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Hear is the abreviated story..................Sold a property -Commercial...was owned by an LLC (limited Liability Company) was bought by my client.......... who also put the property into LLC now after closing the father of the person who sold the property , says that the son did not have the legal right to sell the property..../ all the documents where ok by the Title Company??????? So Is my client ( the buyer ) Protected by his Title Insurance??? That the person Who is representing that he is the , owner axtually is the owner????????????????? Isn't that what title ins. is for that you get clean title and that the person who is selling the property is actually the Owner???????????????? P. S. the property has Three tenants and 2 refuse to Pay because they say they do not know who the legal owner is????????....also Son is holding the Note on property sale price 650k with 130 down.....holding paper for 520kkkk....wtf.....
What is the LLC tax structure? Is it a passthrough? Or a S or C corp?
LLCs are in vogue these days because you can structure them so many different ways.
Find out who actually pays the mortgage on the commerical property.
Seems to me like they were putting it into an LLC for tax/asset protection purposes. Son wants to unload the property but Son/Father disagree on this matter.
Again, a Real Estate Attorney is needed for this matter.
that it is the responsibility, of the title company, not the real estate agent to verify who the real owner of the property is..............He has not mentioned going after me or my company yet//////// I mean when you list a house you are just taking for granted that the person who is signing the listing agreement is actually the owner.....I mean we all do it.... just want to make sure that it is actually part of the title insurance job to make sure that the person representing themselves as the owner actually is the owner...............p.s. their was no mortgage to pay they owned the building free and clear..................WHO EVER THE OWNER IS>>>>>>>>>>>>>>
that it is the responsibility, of the title company, not the real estate agent to verify who the real owner of the property is..............He has not mentioned going after me or my company yet//////// I mean when you list a house you are just taking for granted that the person who is signing the listing agreement is actually the owner.....I mean we all do it.... just want to make sure that it is actually part of the title insurance job to make sure that the person representing themselves as the owner actually is the owner...............p.s. their was no mortgage to pay they owned the building free and clear..................WHO EVER THE OWNER IS>>>>>>>>>>>>>>
I disagree. In Oregon real estate agents are expected to verify prior to engaging in real estate activity that the seller of the property can really sell the property. This would be the listing agent's job. Out here you would get reprimanded for this.
It depends on what their articles say about selling the property. If the articles say the majority members can sell the property, or majority rules, then it may be a mute point.
Yes it is the title companies job to verify that the transfer of title can occur, that the signer is the legal agent for the company, and that the transfer is handled correctly. That is what title insurance is for.
You sound like you dropped the ball and failed to verify who could legally sign and sell the property, but yes...this is what title companies are for.
If the transfer was made by an LLC the title company would have required something along these lines:
**. With respect to BLAH BLAH BLAH, LLC, the following proofs are required:
a. Proof of formation in said organization’s state of formation;
b. Proof that said organization is authorized to conduct business in New York;
c. A copy of said organization’s Operating Agreement must be provided for review prior to closing; additional exceptions may be raised upon review of same;
d. Proof that the Articles of Organization and Operating Agreement for said organization have not been amended since said organization’s date of formation; and e. Proof that the parties executing the closing instruments on behalf of said organization are authorized to do so.
In the case of someone saying someone else wasnt authroized to transfer title, this is where the fraud (if any) will be determined.
Good luck
and yes, if it was a fradulent transfer your client would be covered under the terms of his owners policy.
The title company will hire outside counsel to either a) prove the transfer was not fradulent or b) determine the transfer WAS fradulent and commence a lawsuit against the seller.
Last edited by BK2Westchester; 02-26-2009 at 04:15 PM..
I disagree. In Oregon real estate agents are expected to verify prior to engaging in real estate activity that the seller of the property can really sell the property. This would be the listing agent's job. Out here you would get reprimanded for this.
It depends on what their articles say about selling the property. If the articles say the majority members can sell the property, or majority rules, then it may be a mute point.
Yes it is the title companies job to verify that the transfer of title can occur, that the signer is the legal agent for the company, and that the transfer is handled correctly. That is what title insurance is for.
You sound like you dropped the ball and failed to verify who could legally sign and sell the property, but yes...this is what title companies are for.
how could i have dropped ball if title ins. was issued second of all it is not my job to look over 200 pages of LEGAL( corporation papers) documents to see who is allowed to do what.......that is way above my pay grade as an agent......So you are telling me you run a background check and do a title repot on a prospective seller....YOU MUST BE KIDDING ME You sound like you dropped more than the ball.......
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Client is seeking Lawyers advice but
You sound like you dropped more than the ball.......
