Legal Question in Real Estate Law in California

Re: buying

As far as you are concerned as their buyer, it means they will write "LLC" next to their name on the back of the check.

If you were to sue the LLC and win, you would not usually be able to go after the personal assets of the shareholders of the corporation. That's what "LL" stands for -- limited liability.

Re: buying

An LLC is a private seller; it's a business organization, however; a legal person rather than a natural person.

The professionals assisting you with your transaction should be well-equipped to handle the few, minor, technical differences between buying from a natural person and a "person" existing by virtue of statute, such as an LLC or corporation.

The main difference is that these artificial persons need to act through officers and agents who can wield a pen and affix a signature to agreements of sale and deeds. The buyer would need some reasonable assurance that the natural person signing on behalf of the LLC was duly authorized to sign the contract or deed. Your agent, broker or escrow officer should be able to draw up the documents in such a way as to reflect that the signer is signing, not in his or her personal capacity, but in his or her capacity as (for example) the managing member of the LLC, and that he or she was duly authorized by the LLC to sign that particular instrument.

Also, I'd suggest looking over the preliminary title report pretty carefully, with your agent or broker, to be sure the LLC is shown as the owner as of thedate of the prelim.

Finally, a really fussy lawyer would probably require the LLC to produce copies of (1) a current good-standing certificate; (2) a copy of its operating agreement; and (3) a resolution or some other document from the LLC's govering body (if there is more than one manager) authorizing the sale; and (4) certified copies of its Form LLC-1 and all amendments on file with the Secretary of State. This stuff is hopefully unnecessary if you're just buying a house and can get title insurance.

Re: buying

None.