LLC without spouses?

[Tara Garcia]

My carpenter and I want to set up a real estate company and believe that if we incorporate (LLC), then we can purchase and sell properties as a company independent of our respective spouses. An atty informed me that the title companies will still require their signitures at all sales stating they have no marital interest. Is that right?? We believed we would be protected from other interests as a company, provided they are no part of the company. Tara Garcia

[Don Konipol]

My experience is that any legal entity, such as a LLC or Limited Partnership or corporation can hold title itself to real property and the signatory would be anyone who is legal signatory for that entity. The only situations in which I could see a title company requiring such documentation from a spouse is (1) the spouse has a marital claim on the property in a community property state and a lis pendens of such is recorded, or (2) the LLC is a single member LLC and the title company is overly concerned with the technical issues of ownership under this circumstance. I have completed numerous deals involving these entities and the issue of spousal signature has only come up in these very limited circumstances.
If there is some other information you have not shared such as a divorce lawsuit on the docket then all bets are off and the title companies have every reason to protect themselves from lawsuit in defense of title.