When a Business Sells a Property
When a business sells a property it can be a little more complex then property sold by individuals. The title company will require extra documentation prior to settlement. Some of that documentation includes:
Partnerships
- Copy of the Partnership Agreement
- Names all General Partners
LLC
- Copy of the Certificate of Organization
- Copy of the Operating Agreement
- Proof of paid state taxes
- Tell them whether or not the sale accounts for 51% of the company assests.
Corporation
- Copy of the Resolution of the Board of Directors
- Proof of paid Corporate taxes
- Copy of Stockholder approval of the sale
- Tell them whether or not the sale accounts for 51% of the company assests.
- Copy of the Certificate of Good Standing
Be considerate, provide these documents to the title company as far ahead of settlement as possible. No one will want to spend all day at the settlement table because the title company has to read a stack of documents you handed them that day.
Always call the title company and discuss their requirements. The guidelines above are helpful but every sale is a little different and the title company may need additional information. Good communication is key.
Credit:
Cheryl Hartzman
CLT
|
