Ownership

• The deed to the property contains information regarding how the new owners will hold the title to the property. The way the property title is held is also known as the vesting. The distinction provides a guideline for future events that can occur during the length of ownership. For example, owners can hold property in a joint tenancy with rights of survivorship. This implies that if one owner dies, the other owner will automatically own of the property regardless of any will the deceased may have. Properties owned by LLCs generally use a vesting term that makes the entity a sole owner.
  
  

LLC

• An LLC is a type of business structure that can be created in the United States. LLCs are made up of members, who are also the owners. These businesses can be made up of one or many members. Creating an LLC provides the owners protection for their personal assets. If the LLC were to be sued or go bankrupt, claims or judgments can only be made against the assets owned by the LLC. Assets owned by individual members are separate and protected.
  
  

Signing Requirements

• Documents pertaining to the property transaction, such as loan documents and deed forms, need to be signed by a member of the LLC. To verify the person signing the documents is affiliated with the entity, articles of corporation or other documentation may need to be provided. These documents outline the hierarchy of the LLC structure, which may include the names of the president and vice president. Generally higher level members will sign property documents. Often the person signing is required to include his title after the signature. For example, "John Smith, CEO."
  
  

Considerations

• People who invest in real estate for rental properties, foreclosure sales or tax sales typically choose to establish an LLC to purchase the properties. This is helpful because their personal assets are protected if something happens to the properties. Some states may offer certain tax exemptions on properties owned by LLCs. These exemptions may apply to transfer taxes on the purchase or regular property taxes. The clerk recorder for the county in which the property is located can advise you on that situation. If no exemptions are available, the LLC is responsible for paying any taxes. If taxes are not paid, a lien can be filed against the property or LLC.