Question on required closing documentation.

4 Replies

I'm a relatively small new investor with 4 properties and currently selling my first flip in Ky. The buyers or their title company or mortgage company is asking for the operating agreement for my LLC. Is that a standard practice? Just seemed strange to request that.

Thank you,

Terry

yes standard practice the operating agreement and state LLC articles of incorporation This shows you have the authority to transfer your property

Steven, 

Got it and thank you.  Will know going forward.  

Regards, 

Terry

Originally posted by @Terry McPherson :

I'm a relatively small new investor with 4 properties and currently selling my first flip in Ky. The buyers or their title company or mortgage company is asking for the operating agreement for my LLC. Is that a standard practice? Just seemed strange to request that.

Thank you,

Terry

Terry -- if you don't have an Operating Agreement, tell the title company that. No need to go out and hire an attorney to create one... the KY LLC Act fills in the gaps in the absence of an OA. You may need to prepare an LLC Resolution authorizing the sale and the title company may have some paperwork for you to complete to ensure you (or someone) are authorized to sign settlement docs.

Tom,

Great info and will do.  

Thank you,

Terry

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