Monday, January 31, 2011

QUICK NOTE: Real Estate Conveyances from an LLC

A recent change to the Title Standards of the Iowa State Bar Association removes the presumption of authority on LLC conveyance documents, such as a deed. Now, record must show 1) information indicating whether the LLC is member-managed or manager-managed; 2) that the conveyance was in the ordinary course of business; and 3) that the signatory(ies) had proper authority.  An affidavit attesting to these facts, recorded with the deed, is an acceptable and pain-free solution.