This is certainly a newbie question, but when filling out the TREC 1-4 contract to purchase a property as an entity:
1. In Para 1, what do I enter in the line for the buyer?
2. On page 8, for the signature, how is this signed? Should there be additional language indicating that I am signing on behalf of my entity?
1. Your business name
2. Legal owner/member
Don't sweat the small stuff. Title companies will notify/help you if something needs to be changed on contract.
1. Name of buyer (individual or entity)
2. If the entity is ABC Investments, LLC (and assuming you are a Member), below the signature line it should show ABC Investments, LLC by Brandon Gxxxxx, Member. Signature would then be Brandon Gxxxx, Member.
A single member executing a contract will need to prove to the title company that the member has the authority to act unilaterally on the part of the LLC.
@Guy Gimenez What is the process of proving I have authority to act unilaterally?
If there are two or more members, the title company will require you to execute a "Authorization To Act On Behalf of LLC" or similarly titled document. The form language is different with each title company, but it will require all other members to sign that they are authorizing you to act on behalf of the LLC, including binding the LLC contractually and to execute all closing documents.
Whatever title company you choose to work with, get them to send you their Authorization form.
Free eBook from BiggerPockets!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
You must be a BiggerPockets member to post on the forums
Join the world's largest, most open Real Estate Investing Community online, 100% free forever!