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If a property is owned by two people, with both owner’s names on the deed, however, at one point, a LLC was formed for that prop

New York, NY |

If a property is owned by two people, with both owner’s names on the deed, however, at one point, a LLC was formed for that property but with only one of the owners name on it, (one owner had signed a quick release in order to form the LLC) will that one person have the right to sell the property without the other partner's authorization?

Attorney Answers 4

Posted

If the deed transferring the property to the LLC is signed by both property owners (and their combined interest is 100%), then sole legal title will pass to the LLC. The deed and transfer documents would be recorded in the County Clerk's office. If the LLC is a single member LLC, then the sole member of that LLC will have control as future disposition/sale of the property. Consult with an attorney who can review all documentation and provide proper guidance.

The information provided in this response is for informational purposes only and should not be construed as providing legal advice or establishing an attorney-client relationship. Recipients of this information should not act upon it without consulting legal counsel as individual situations and facts may vary.

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Posted

I assume the property was transferred to the LLC by deed. If so, the LLC now owns it and it can be disposed of by the manager and/or members of the LLC, per the LLC operating agreement. As has been indicated, if it is a single member LLC, the single member can dispose of the property without the consent of anyone. You need to be a member of the LLC with voting rights sufficient to require your consent for the sale or encumbrance of the property. You need to see a corporate lawyer who set this all up for you.

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Posted

If the LLC owns the property, then the operating agreement of the LLC would govern. If it's only a one person LLC, then the managing member should have right to sell without needing authorization from anyone.

Did the two people execute a deed in favor of the LLC? Speak with a real estate / LLC attorney.

My direct line: 646-606-6002. www.thefalkowskifirm.com. If this answer is helpful and/or the best answer, then please indicate it as so. Thank you. This answer is provided for informational purposes only and does not constitute legal advice. You should not take action based upon this information without consulting legal counsel. This answer is not intended to create, and does not create, an attorney-client relationship.

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Posted

It depends on whether fee title to the property has been transferred into the LLC. If so, it depends on what the operating agreement says as to who has authority to bind the LLC. If one member of the LLC has provided authorization to the other member, either as managing member or the manager of the LLC, to bind the LLC, then the answer is yes. If not, the answer is no.

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