We need your husband, little lady...

26 Replies

OMG, It's like The Handmaid's Tale here in College Station!

I have a verbally accepted offer from a seller; the seller is financing the deal. I went to the real estate agent's office (I'm buying direct from the listing agent) to sign the offer documents, and he asked where my husband was. I told him he was not coming, that the property will be in my single-member LLC. He told me my husband will *still* need to sign the paperwork, as Texas is a community property state. I told him my husband is not a member of the LLC, the buying entity. He said that "in case something happens to me" my husband would be on the hook, so he needs to sign all the documents. (Which, BTW, is probably illegal, as why would someone who is not any part of a corporation, i.e., my husband, be required to sign???)

He then started telling me alllllll the paperwork that I would need to provide from the LLC -- you know, articles of incorporation, etc. and asking do I know how to gather up all that stuff. OMG.

LOL, then I started discussing husbands/wives each having independent mortgages for up to 10 properties each.  And he said that's not possible.  Oh, BTW this agent also has his own rental properties.  And the seller is an investor.

Anyhow, I just let him blather on about this silliness, took home the offer info, will sign on my own and send it back.

Oh, and BTW, I'm 52 years old, LOL!

Originally posted by @Connor Heim :

OMG, It's like The Handmaid's Tale here in College Station!

I have a verbally accepted offer from a seller; the seller is financing the deal. I went to the real estate agent's office (I'm buying direct from the listing agent) to sign the offer documents, and he asked where my husband was. I told him he was not coming, that the property will be in my single-member LLC. He told me my husband will *still* need to sign the paperwork, as Texas is a community property state. I told him my husband is not a member of the LLC, the buying entity. He said that "in case something happens to me" my husband would be on the hook, so he needs to sign all the documents. (Which, BTW, is probably illegal, as why would someone who is not any part of a corporation, i.e., my husband, be required to sign???)

He then started telling me alllllll the paperwork that I would need to provide from the LLC -- you know, articles of incorporation, etc. and asking do I know how to gather up all that stuff. OMG.

LOL, then I started discussing husbands/wives each having independent mortgages for up to 10 properties each.  And he said that's not possible.  Oh, BTW this agent also has his own rental properties.  And the seller is an investor.

Anyhow, I just let him blather on about this silliness, took home the offer info, will sign on my own and send it back.

Oh, and BTW, I'm 52 f*cking years old, LOL!

Is the seller willing to sell to the LLC and and you have no personal liability for the mortgage?

What a #$%$!!! I can't believe this kind of crap and old man mentality is still around. I assume there is no way to cut the guy out of the deal as a small lesson of how women aren't considered property of their husbands?

@Connor Heim I would go around that agent and sign a deal with the seller so fast it would make his spin off.  i would then tell his broker and the real estate commission.

Oh, friend, I feel for you! Definitely have a chat with his broker and TREC. The only thing worse than a misinformed agent is a man-splaining misinformed agent! Good luck!

Originally posted by @Connor Heim :

Yes, he is willing to sell to the LLC. I will personally guarantee the loan. My income is sufficient :)

I wonder if they are confused about a TX law requiring spouse to be on mort or title

Originally posted by @James Stevens :

@Michael Plante LLC's don't have spouses.

She’s personally responsible for the mortgage

Perhaps they were confused 

I’ve paid cash fornproperties and the closing Atty insisted my spouse be listed 

A lot of jokes but has anyone has considered researching the issue? Or asking for a legal opinion? 

I'm not weighing in on that but... in a community property state, with a single member LLC owned by one spouse, LLC having been formed during the marriage, this really isn't a laughable position being taken by a seller who is financing the deal. Without a valid security interest the seller has zero.

@Tom Gimer

While Texas is a community property state, a spouse is free to buy property in their individual name. Title companies usually require the spouse to sign the deed on the sale or sign a non-homestead affidavit 

In sales regarding an LLC, the spouse would not be required to sign even with a single member LLC as I assume she is signing as Manager

@Greg H.

OK... but you missed my point. This is a seller financed deal and OP is a buyer. We have no idea whether this is a member managed or manager managed LLC and it may not matter.

If there is any question about whether a deed of trust/mortgage will be valid or invalid because a spouse may or may not have an interest in the property being acquired and pledged... as the title company (in my case) or the seller, you get the spouse's ink on the DoT and erase all doubt.

Not attempting to give an answer, just some perspective from the owner-financer position which is likely zero about the lady and all about protecting dollars.

Well now Missy... it's about time you stop looking at real estate and get back in the kitchen to bake some cookies....

Not saying the agent was right, but I'm often surprised that my wife or I has to sign at title some deed or form for separately owned real property. We're in a comm prop state, too.

Here's what I did learn: it's a lot easier to remove an owner or member later (Like when you refi and want to keep loans separate) than it is to add.   Removing is a simple QCD. Adding is an excise tax affidavit and annual gift limits.  Can get messy.

When we buy with cash or receive seller financing, personally or in an entity, we buy together. When we refi later, we can easily remove to separate.  

Now back to your regularly scheduled snark...

Tell the "agent" to stop practicing law.

http://www.txuplc.org/Home

For an LLC buying, pretty much what other said. For personal guaranty, they can ask for whoever they want. If you buy in your personal name only, it is common to get the spouse to sign the deed of trust to completely perfect the lien against that spouses community interest in the collateral.

But here, not necessary and he should stop playing lawyer.

In the alternative, you and your spouse could sign an agreement that the investmentproperty you are buying in your name only is designated separate property and not community property.  But that doesn't apply here.