Real estate investors often form Limited Liability Companies (LLCs) to buy, sell, and hold real estate. When a buyer or seller of a property is an LLC, title companies request documentation related to the LLC. These documents help establish the identity of individuals authorized to do business on behalf of the LLC, prevent business fraud, and legally secure the LLC’s interest in a property.
A novation is a legal instrument used to replace one obligation or party with another in a contract. Learn more about how they are used in real estate transactions.
The Articles of Organization are required by each state to legally form a limited liability company (LLC). Occasionally, the Articles of Organization may be referred to as the Certificate of Organization, Certificate of Formation, or the Articles of Association.
A certificate of good standing is a state-issued document demonstrating that a business is properly registered within a state, up to date on registration fees, and active. Business owners will usually only need a Certificate of Good Standing when it’s requested by a third party. It’s a good idea to prepare for the request before doing any of these activities.
An Operating Agreement provides explicit terms regarding the financial and operational rules of a limited liability company (LLC). it’s a vital business document for more complex transactions like buying and selling real estate.
These documents help establish the identity of individuals authorized to do business on behalf of the LLC, prevent business fraud, and legally secure the LLC’s interest in a property.
A legal description is the precise location and measurement of real property. While an address is often used to locate a property, legal descriptions are used when transferring title because they’re more accurate.
A recording instrument is any legal document that is recorded in the public land record system to convey the title of real property or show secured interest or release an interest in a property.
Real Estate Contracts Facebook Twitter Linkedin What Is an Assignment Contract? Assignment contracts are a vehicle used by real estate investors to transfer one party’s rights and obligations under an existing real estate contract to another party. Assignment contracts don’t involve transferring or selling the property directly like a purchase agreement. Instead, the buyer under… Continue reading What is an Assignment Contract?
Title Insurance Facebook Twitter Linkedin How Much Does Title Insurance Cost? When you sign up for health, home, auto, or life insurance policies, the insurance company painstakingly determines the appropriate rates to charge based on the risk of a future uncertain event causing a claim covered under the insurance policy. Some of the factors which… Continue reading How Much Does Title Insurance Cost?