Agreement of Sale for LLC?

[Angela Henderson]

We own 3 rentals and decided to start a LLC for the next deal. We found a property and plan to submit an offer over the holiday weekend. My son is our real estate agent and it's his first deal ( we're his first customer!). His broker has instructed him to write our Agreement of Sale under me and my husband's personal names rather than our LLC as I expected. Is this correct? The 3 properties that we currently owned were all sold by LLCs and the LLC is listed as the seller in each agreement. Seems that as the buyer our names would not be listed on the Agreement of Sale. Our pre-approval has our LLC as the borrower and we're signing as grantors. Any advice would be greatly appreciated! We just want to be sure we don't mess up the paperwork. Was hoping to not incur the cost of an attorney if we don't have to. thanks!!

[Joel Owens]

What they might be thinking of is someone wants to set up a single entity LLC for a property but does not have it set up yet. So in the PSA contract you have (and or assigns). The seller if smart would have language limiting the assignment to one that you own 50% or more of so that way you can't just assign it to anybody.

If you already have the LLC you want to set up as a buyer then generally the LLC would be listed and you sign the contract as the managing member. The seller might request you provide your articles of organization showing the person signing has the authority to bind the corporation to an agreement. You can sometimes be an officer of a corporation but not have certain authorities to bind the corporation.

No legal advice given.