All Forum Posts by: Dan Gauthier

You are correct about requiring an LLC resolution. But the power of attorney is necessary to appoint a non-LLC member to sign for the LLC. In my experience a title company does not generally accept merely a resolution appointing a non-LLC member to sign.

I agree with what @Will Fraser recommends. The title company should provide you with a form power of attorney and LLC resolution authorizing you to sign.

Lee - I think in order to give helpful answers to all or almost all of your questions we need to know why you are meeting with the attorney. Happy to follow up if you provide some more information.

You should definitely talk to a real estate lawyer licensed in the state where the property is located. The answer to your question may depend in part on state law. There may also be adverse possession claims. Ultimately you will need to work with a title company (with the assistance of a lawyer) to insure over the title issues.

Why do you want the anonymity? As others have said, in order to determine whether a multi-tiered structure is worthwhile, we have to know why you want it. 

You can lose anonymity by necessity or accident. In other words, you or one of your partners could be required to disclose your individual identity in connection with state or local filings. Or your upstream LLC (the anonymous one) could be required to register to do business in the state where your property is located (talk to a lawyer in that jurisdiction for help with this). Finally, you or your partners could accidentally disclose one or more members' identities on an application or submittal - this happens more than you may think.

I generally don't recommend anything more than a simple LLC structure for real estate joint ventures - there have to be reasons why the additional complexity and cost are justified. If you have specific reasons to do so then it can be worth the time, effort and expense - and as others have noted, these costs are real.

I am not licensed in New York, so take these general thoughts with a grain of salt. Assuming title will insure over the quitclaim deed you should be able to purchase endorsements to your title insurance policy to mitigate some of the risks you are concerned about. Talk to your title company + a good real estate attorney for details on this.

In addition, it might be worth paying your title company for a condition of title report or "pre-title report" to see what shows up on title. That should give you a better idea about whether to be concerned.

For what it's worth I do not think the fact the City will only quit claim the property is in and of itself alarming. The City probably just does not want to take on any remote possibility of a warranty obligation.

Not sure I follow. Are you saying the seller got your earnest money? Or are you saying you would not have spent the money on the inspection had you known about the radon issue? If it's the latter I agree with Chris. Even if you could prove up a misrepresentation, you would not so because based on the facts you gave you don't have damages worth trying to recover.

JC, 

Did you go through the report with your inspector? If not, you should. Ask him or her what items are most concerning in their opinion. Assuming you trust your inspector, that's a starting point to analyze your risks. I generally start by talking with my inspector then on his recommendation I reach out to the appropriate vendors (HVAC, roof, etc.). Given that you have only a few days I would absolutely start by talking to your inspector and if he/she recommends it, get a more specialized opinion asap. Good luck!

Dan

 My reading of this...

Sec. 48401(a): the landlord can give notice of a tenant breach and termination. The termination date in the notice must be the greater of 5 days and whatever notice provision is in your lease. Depending on what the event causing the breach is, the lease would terminate 5 days after the notice or a longer period in the lease or in the notice (if the notice specified more than 5 days). 

Sec. 48401(b): Landlord sends written notice of nonpayment 5 days after due date (including intent to terminate if unpaid), then landlord can terminate the lease 30 days after tenant receives the notice if still unpaid.

Note that all of this is subject to whatever your lease says and whatever restrictions are currently in place in your jurisdiction due to COVID-19. I strongly recommend you talk with a lawyer about this. 

In response to your questions: Yes, a tenant would have 30 days from the date he/she gets LL notice to pay the rent before the lease can be terminated. Eviction filing would be governed by other local law and/or lease. The lease end date would depend on what caused the breach - if it's unpaid rent, it would be 30 days after tenant gets that notice.

I would check with your title company and make sure they will issue a title policy over a quitclaim deed and for that property. If they will, you can mitigate risk with an extended policy. 

What City? I don't know if quitclaims in this situation are common outside of AZ, but others might.