Suspended Corporation - Posted by California Investor

Posted by California Investor on July 08, 2011 at 14:41:17:

My California corporation has been suspended. Something about two years of tax returns due. Fine, I’ll get to it when I have money, when I sell my current flip. But I’m set to close on another property (short sale) next Wednesday. The title company has not mentioned anything to me about it. They simply wanted me to bring in a corporate resolution for the purchase. Do you think this issue will come up? I wonder if they even check on those things.

I could at the last minute switch my corp’s name for my name as the buyer. But then the bank might make a fuss about this.

Of course I should have addressed this before, but here we are now.

Re: Suspended Corporation - Posted by Natalie-VA

Posted by Natalie-VA on July 12, 2011 at 17:45:10:

I would think it would be more of an issue when you go to sell the property, so if your purchase goes okay, you’re not out of the woods.

–Natalie

Re: Suspended Corporation - Posted by Thomas K. Standen

Posted by Thomas K. Standen on July 08, 2011 at 15:15:00:

When we receive a note for servicing or business practice is to run the corporation or LLC through the Secretary of State site to determine if the entity is currently in good standing. I will be surprised if the title company does not do the same thing sometime during the process.

Re: Suspended Corporation - Posted by California Investor

Posted by California Investor on July 08, 2011 at 15:36:29:

I went in to sign today and glanced over at the title officer’s to-do list. Didn’t have “check entity status” on it. Oh boy…we’ll see if it comes up next week.

Re: Suspended Corporation - Posted by Bill Bronchick

Posted by Bill Bronchick on July 10, 2011 at 21:33:12:

Look on the schedule of requirements on the title
commitment. Usually a certificate of good standing is
required.