I think you are talking about the Certificate of Tax Compliance for the seller's LLC. I just went through this on the seller side. The closing attorney instructed me to obtain the Cert from the dept of revenue, because the property I am selling represents more than 50% of the LLC assets. I paid my $60, got the cert, and forwarded it to the attorney.
For unrelated reasons, however, the buyer wasn't ready to close, and I learned the cert is only good for 30 days. Attorney told me to get another one. I said ok, but not until we set a closing date. I have another $60 cert now, and we are set to close next week.
Back to your question: It is a legitimate issue. Both times it took less than 10 days (I'm in SC), but your seller may be building in some buffer, or it may take a little longer in other states. If your seller obtained the cert earlier, they might have had to repeat it like I did.
Rental Property Investor · Santee, CA · Member since 2015 · 15 posts · 0 votes
9y
I goofed and hit enter too soon. Hello Bigger pockets!!! I am in the process of my second buy and hold out of state. Everything is good to go on my end for the initial closing date but the seller has now asked to push past an additional 15 days due to their LLC paperwork they have not received from the state showing their taxes are up to date. Is this normal? Should this paperwork been filed for in the beginning of the deal? Am I being impatient?
I think you are talking about the Certificate of Tax Compliance for the seller's LLC. I just went through this on the seller side. The closing attorney instructed me to obtain the Cert from the dept of revenue, because the property I am selling represents more than 50% of the LLC assets. I paid my $60, got the cert, and forwarded it to the attorney.
For unrelated reasons, however, the buyer wasn't ready to close, and I learned the cert is only good for 30 days. Attorney told me to get another one. I said ok, but not until we set a closing date. I have another $60 cert now, and we are set to close next week.
Back to your question: It is a legitimate issue. Both times it took less than 10 days (I'm in SC), but your seller may be building in some buffer, or it may take a little longer in other states. If your seller obtained the cert earlier, they might have had to repeat it like I did.
Rental Property Investor · Santee, CA · Member since 2015 · 15 posts · 0 votes
9y
Thank you Pearce, this was very helpful. I just didn't want to seem as if I was being heartless towards the seller. We just wanted to get the ball rolling on our investing.