I'm in the process of acquiring a hud property that I'm titling under my LLC. To avoid doing a double closing I want to sell my LLC to my end buyer to save on closing cost. Can anyone give me some insight on how to sell my LLC. This is a Maryland LLC.
I'm guessing you would assign the membership interests, not the "LLC", That should be easy enough but I'd have your lawyer do it.
My question would be is anyone, either you or the end buyer, getting a loan. Because if you are the bank may have a problem with it being titled in the LLC.
Personally, I would never buy interest in an LLC. Too much risk of undisclosed liability.
I've never bought a membership interest myself, or corporate shares, some of the ways people have tried to assign property.
But, it seems to me that a title company could still search the title up to the LLC, and then give title insurance. One thing though, buying an LLC interest would obligate you to anything incurred by the LLC. I'd want to have some paperwork in place that addressed that issue.
It's not the chain of title I'd be concerned about but potential obligations made in the LLCs name. Just something that I wouldn't deal with personally. It's an ugly hack to get around some closing costs. Something some guru proliferated, I expect.
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