I have been buying properties from the sheriff sale in New Jersey for sometime now. I recently was the successful bidder of a property and when I went to pay the 20% deposit required at the time of winning. I was told my Certified checks that were made out to "MY LLC" would not be accepted to transfer over to the sheriff office and my winning bid was nullified and the property was re-auctioned.
Now if my certified checks were made out “to my personal name” then the sheriff office accepts me signing that check over to them and now my funds are accepted as the 20% deposit.
* So.. are they basically denying a companies reperseantive “the owner” to bid on its behalf??
* So llc can't bid but can ask the sheriff to make the deed under a LLC name. Double standard?
** There are no banking guidelines that state either of these transfers are not allowed. Banks perfectly honor certified checks being transferred to third parties.
* Weather this certified check was made under an individual name or the llc.
Both can be transferred to a third party and can be cashed with proper identification. (Verified)
THOUGHTS ON THIS GUYS. My attorney thinks they are totally wrong and we are moving forward with litigation.
I’m going to guess somewhere in their auction rules/procedures this is spelled out. I’ve heard of this weird “check made To the buyer” as a deposit, I’m more familiar with the “cashiers check made out to the clerk of court/sheriff’s office”, so I obviously don’t know your rules. I can’t see you prevailing on This property though.....if you want to spend the time money to “prove a point” or “change the system”, carry on.
A similar dismay on my part.....I just went to bid opening where a state agency accepted a bid that was turned in late on a $12M project, caused by confusion on the bidders part. I always thought of this as a fatal flaw....but apparently there is precedent for it and extenuating circumstances considered. The second bidder is a large national $2B or so a year contractor, with certainly the best attorneys, and they walked away instead of fighting after meetings with the agency.....go figure.
Well, that doesn’t even say Who the check is to be made out to......somewhere it has to state this.. BTW, does the check Have to be made out to the Buyer or is it normal to make it out to the Sheriff’s office and they “allow” it to be in the buyer’s name, and signed over?
You’ll have to dig deeper.
Those are the only guidelines they have. My attorney is at 85% success rate of the judge tossing this in my favor. Or throwing the entire bid out for a re-do! They are denying a LLC from bidding. They only want individuals to bid.. it's clear what their intentions are here. please visit the link and read and try and comment then. This is unreal!!