LLC Membership Agreement: I am an equal 1/3 owner in an LLC (State of CA). We have a very basic operating agreement that was prepared by Legal Zoom and does not spell out many of the specifics that I think many operating agreements cover. I believe a membership agreement could spell out these specifics (i.e. buy/sell terms, succession, etc.). Is that accurate, and if so, do we have to follow a set template? Most I have read make little sense, and I want to make sure the document covers off on everything it should cover, while also being something we can all understand and therefore agree to. Thanks for you assistance!
James' answer: Your belief is accurate; the Operating Agreement can contain buy-sell terms, succession, any topic you agree on. No particular format is required, as long as you agree on it. A starting point would be to look at the California Corporations code (link below) the LLC provisions start at section 17000. The code provides the fallback position if your operating agreement does not cover a topic. If the agreement does cover the topic, it may vary from the code in most cases. You may want to consult a business attorney to fashion the provisions you want to add, it is important that the operating agreement terms mean what you want them to mean, and are enforceable. Disclaimer The content of this comment contains general information based on California law and is provided for informational purposes only, and should not be construed as legal advice on any subject matter. You require specific legal advice and should not rely on general information provided in response to a question posted on Avvo. You should consult with an attorney to discuss the matter and for any specific legal advice.
Can a buyer of a short sale request a seller to vacate the home then cancel after the bank has issued an approval?: Buyer made an all cash offer with 3% deposit. There were no contingencies since there was no loan. Buyer inspected property on several occasions and requested the seller to vacate for final inspection. 60 days into the purchase AFTER the bank approved the short sale and issued approval the buyer decided to cancel verbally. Buyer never furnished written cancellation other than a "Mutual Cancellation Instructions For Escrow And Purchase Agreement" requesting their deposit back. This cancellation may result in a forclosure as this un-serious buyer ate up time for the SS process. Notice of trustee sale notice has been placed on the door of the home. Buyer beleives that because this was a short sale transaction the seller is NOT entitled to the deposit. Is this correct in California?
James' answer: Whether or not the buyer is entitled to the a return of the deposit depends on the terms of the written agreement between you. It should provide for a way contingencies are released- either by passage of time, by written waiver. These contingencies include inspection and financing. Once the contingencies were waived the deposit is not refundable if the buyer backs out. Disclaimer The content of this comment contains general information based on California law and is provided for informational purposes only, and should not be construed as legal advice on any subject matter. You require specific legal advice and should not rely on general information provided in response to a question posted on Avvo. You should consult with an attorney to discuss the matter and for any specific legal advice.
my co owner of the house want to sell the property but i want to keep the house what should i do: how can i give the part of equity that belongs to my co owner if i want to keep the house and continue the mortgage payment
James' answer: This is a common problem with co-owners. You will have to refinance the property, or take out a 2nd in your own name, to pay the co-owner for his equity. If you agree on the dollar amount, the co-owner would submit a deed into escrow, the loan would close, and the co-owner would be paid from escrow. Ultimately, any owner has the legal ability to force a sale through a legal action for “Partition,” which results in a court ordered sale. Disclaimer The content of this comment contains general information based on California law and is provided for informational purposes only, and should not be construed as legal advice on any subject matter. You require specific legal advice and should not rely on general information provided in response to a question posted on Avvo. You should consult with an attorney to discuss the matter and for any specific legal advice.