1031 purchase: Tenants in common or Joint tenancy
My wife and I created an LLC to purchase a 4plex a few years ago. We are the 'members'. We just sold and need to 1031 our proceeds into a new property. I understand our LLC needs to purchase the property. About to start shopping but realtor wants to know how we will 'take title', as Tenants in Common or Joint Tenancy. Which is best for an LLC with two members?
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@Ladd McClain, the answer to your realtor is - Neither. You will take title as the LLC. The LLC will be the sole tenant. There will be no joint or TiC. The LLC is the seller. the LLC will be the buyer.
Now as far as negotiating the contract it doesn't matter. You can go into contract as any entity you want. Simply make the contract assignable and then use a "seller" name that is easy for you to negotiate in. When the escrow company prepares title insurance and the deed they will put it in the name of the LLC.
- Dave Foster
