Question: My limited liability company is the buyer on a contract to purchase Arizona real estate. What LLC documents will the title insurance company or the escrow agent want?
Answer: When a limited liability company is the buyer or seller of real property the title insurance company and escrow agent will require the LLC to supply copies of the following documents:
- The LLC’s Articles of Organization approved by the Arizona Corporation Commission. If we formed your LLC we would have sent this document to you as a pdf file attached to an email and given you a hard copy of the AOO in your red LLC portfolio (Silver & Gold LLC purchasers only). Many times the title insurer and escrow agent will get a copy of the ACC approved Articles of Organization by doing a search of the LLC’s name on the ACC’s LLC online database and then printing the AOO that is linked to on the LLC’s page.
- The LLC’s Operating Agreement signed by all of the LLC’s members. This is an important document because it should state who can sign contracts for the LLC and authorize that person to enter into contracts to buy and sell real estate. If we formed your LLC we would have sent you the LLC’s Operating Agreement as a pdf file attached to an email and given you a hard copy of the OA in your red LLC portfolio (Silver & Gold LLC purchasers only). If your LLC doesn’t have an Operating Agreement hire us to prepare a custom Operating Agreement.
- Some title insurers and all prudent buyers and sellers will require the LLC to deliver a copy of resolutions signed by the members that approve the LLC entering into the contract to buy or sell and that names the member of a member managed LLC or the manager of a manager managed LLC who has the authority to sign the contract and other documents on behalf of the LLC. If you need resolutions purchase our do-it-yourself LLC member resolutions form for $37.
- If a trust is the member of your LLC then you will also need to give the title insurer and escrow agent a copy of the trust agreement or a certificate of trust in lieu of giving the entire trust agreement.