Posted by mark on October 31, 2006 at 09:03:42:
Thanks for the timely reply and very good advice! I’ll follow up with a discussion with title officers per you guidance.
Recording an LLC Agreement - Posted by mark
Posted by mark on October 30, 2006 at 08:32:12:
A as a minority member in a L.L.C., I wish to ensure that the managing/majority member does not sell the real estate we own without notifying me. Will recording our L.C.C. Agreeement at the County Clerk’s office contribute to ensuring that I am notified.
Re: Recording an LLC Agreement - Posted by John Merchant
Posted by John Merchant on October 31, 2006 at 24:31:00:
I’m thinking you need to hash this out with the members of the LLC and its manager to make sure that mgr does NOT have the right to sell without giving written notice to all members…or to change the management of the LLC to make it so that any and all decisions by the LLC would have to be by majority vote, or unanimous, or however you members vote it to be.
This could be done by amendment to operating agreement to have it read that the mgr could not sell without proof of notice to all members.
If he were to try to sell, he’d have to satisfy the title company that he did have authority, and the title officer would undoubtedly want to see the LLC Op Agreement and subscription agreement to see who had the authority to sign for the LLC and what it permitted the mgr to do.
For your own peace of mind, I’d suggest talking to one or two title officers to see what they normally want to see when passing title from an LLC.
Frankly I’d not want to record any memo in deed records saying I was an owner of the LLC as I’d prefer to keep that private, and I never imagined any LLC member would want to record that.