All Forum Posts by: Steve McGovern

Interesting question-- I'll bite: 

In terms of an LLC's real estate matters, a Power of Attorney (POA) is usually redundant , because an LLC's flexible structure renders it moot. Your docs should declare who can sign what on behalf of whom, and under what circumstances, up to and including signing/engaging/burdening the LLC with obligations, debts, etc for Real Estate. ...and I suppose, as you said, up to and including authorization of a POA, I guess, but that's a pretty good-sized redundancy (or loop hole, depending on one's point of view.) Generally, if you need to 'fix' some internal process, you just amend your docs to include a scenario for signers.

Furthermore, the POA would generally be for the individual who's acting on behalf of the LLC anyway... so there's yet-another redundancy.

I'd contact a Corporate Lawyer for this purpose (and clarification!) At the very least, a Real Estate Attorney who has a sound Corporate background, assuming the LLC is a real-estate related entity.

This, I will say with some confidence: ALWAYS make sure that ANY POA drafted is LIMITED in person, purpose and time at a minimum. You don't want a blanket POA hanging out there to be acted-upon by someone at any time.

If you want to be more specific with your circumstances, maybe someone will be able to assist better.  

Agreed in full.  I'm completely aware of that, @Tom Gimer, but you're right,  the risk should be stated to @Edward Kozic too.   For my part, this is where my concept of  'quietly but firmly' comes into play.  It's also where someone with some experience can assert his experience into the situation, despite the greener third party conduit. 

Any new wholesaler is looking solely forward to his/her cut, but they should be looking now at managing the communication between the parties.  Make sure he/she understands that, Edward.  Thereafter, use that anxiety that Tom mentioned to get the wholesaler to repeat the mantra up-line.  

Hey, even us Agents need to go through agents-- sometimes it's a professional, sometimes it's a 'friend of someone who knows a thing about a thing.' 

@Edward Kozic, there is no doubt that your best and most-technically sound advice is already above @Tom Gimer, @Ned Carey.  Pay close attention to the Title claim v. Estate claim nuance.  You should definitely have someone run that Title, if you haven't already.  In this case, it will necessarily need to include the probate records as well.  You may find that someone was cut out of an estate or was offered "something of value" prior to the death of the Owner, and that something reduced his available inheritance upon passing.  This stuff happens all the time in families (especially bickering ones!) You never know.  

But I'm surprised that no one has already mentioned a simple appeal to logic here:  it should be stated quietly but firmly and often that a bona fide purchaser (that is, you) is interested in acquiring this physically and monetarily distressed asset for a reasonable, already-negotiated price, and that the Brother has the choice of accepting that price, or getting wiped out and receiving literally nothing.  

If you make that a mantra,  the sisters and the wholesaler should eventually be able to impress the fact upon the hold-out.  

Money talks, especially when the option is 'no money at all.'  

Good luck-- I'm interested to see what happens here, too.  

Lauren, (sorry— can’t tag you on mobile) you are correct, save for a couple of minor clarifications. In many states, including NC and TX, to my knowledge, the Title insurance industry is regulated by the state Insurance commissioner. Additionally, Title is required to be certified (in NC, but not necessarily Tx from my recollection) by an ATTORNEY. Therefore people who are fully authorized to practice title (in NC) are both licensed attorneys and licensed insurance providers. As a non-attorney, you may be able to issue Title, but the jurisdiction requires that attorney cert., so you would still be held up and not entirely autonomous as an Agent... unless you employ (or retain) an attorney(!) On the other hand, to generally examine, abstract, analyze, or negotiate coverage, one does not need to be an attorney, but may benefit from being employed by either a law firm or Title company. So, that’s as clear as mud, right? It’s kind of like the jurisdictions where in order to practice RE brokerage activities, you must be licensed...but there are carve-outs for full time property manager/development company employees— they can still market and show homes in their portfolios without a license.

@Brian Pulaski, with BX, you are correct— I stand corrected from my earlier “open ground” note— but we need to add that detail: the BX IS the ground back to the panel. (And assuming, back to the street-side water main or grounding rod). I.e., you’re NOT actually ungrounded.

Sorry, @Brad Chatrou, was running into a meeting.   I would say 7-10 days is reasonable for an Examiner to review, and for a Title Co. to issue you some report, Commitment or Abstract of the matters.  

Additionally, as @Wayne Brooks said, certain utility, building, planning and/or zoning matters will not show up on Title, but they may still encumber the property.  These omissions are not included, unless you ask for them to be included and unless you get an Endorsement from the title insurance co. that indicates that they are included.  

The answer to this question absolutely depends on your jurisdiction-- not just State to state (Attorney Certification states, v. Title Plant States v. Torrens States v. jurisdictions that record municipally as opposed to county, etc.)  Texas can be trickier than many jurisdictions-- they don't subscribe to the forms and processes of 90% of the country.  

I spent 10 years doing complex title work for large law firms and nationally for infrastructure companies.   here's my rule:  

ALWAYS GET TITLE OWNER'S TITLE INSURANCE.   Always.   

1) you are required to a Lender's Policy for the lender anyway; 

2) for a little more money (like, a dollar-per-thousand) and what's called a "Simultaneous issue fee" (about $1-200) you will be insured.  

That means any encumbrance that does NOT show up on your policy, the Title Co. has an obligation to cover you;  that includes omissions.  

Agreed with Steve Milford. Paying for your license gains a credential where then you get paid If that takes some up front money, it’s a small price to pay. Personally, I also have a number of certificates from college-type programs. At least 3 of these did not require a BA prior. These are my areas of “masters study” where I could targe the areas of real estate that I wanted to learn, even though they don’t quite equal the credential of a Masters. (Hint: they’re still cheaper!) I like school, and I appreciate that I can bolster my resume with my educational efforts. If you’re like me as opposed to a couple of other posters here, then look at your local colleges for construction, real estate, commercial, finance, zoning/land use or development certs. Don’t forget to also look at NAR, CCIM, SIOR, REFA, ULI, CRE, and other trade-group creds.

I think @Thomas S has it right— unless you can compel him to sign the lease and are willing to toss the dice on him splitting. Maybe you ask for (x) months up front.... (Definitely run his background— if he has another family, then you know. How many times have you heard, “oh, he’s going to divorce her...”.). Just food for thought, there.

Ha! Quite seriously, none of the above was intended to scare you... it is a simple truth that jurisdictions interpret the Code differently from other jurisdictions. I would still recommend speaking to the CEO or BI to verify the norms in your area. Good luck.