I often buy cheap raw land parcels and self close. Sometimes the name on the deed is an LLC. What documents do you look for to ensure that the person signing over the property is authorized to do so? I typically ask for the Operating Agreement and the Articles of Organization, but is there anything else you like to see?
Also, what “level” of member does a signer need to be? Most of the time it’s just a sole owner, but when there’s multiple members, how do I determine a person’s authority to sign?
@kris it sounds like you’d probably want to get the member(s) to sign a Resolution for the LLC, and have it state which person(s) have the authority to sign on behalf of the LLC.
This was a regular document I had to get signed back when I was in banking. Any time an LLC or Corporation signed for anything, it was accompanied by a Resolution to verify that the person signing had the authority to make that decision. In order to prepare this document, we first had to collect the Operating Agreement or Bylaws for the entity, because this would explain which names should be listed on the Resolution in the first place.
As you can probably gather, when a business entity is involved (instead of just an individual signing on behalf of themselves), it gets a little more complicated, so you might want to bring this kind of deal to a title company to let them deal with it.