Who Can Bind A Home Owned By An LLC To A Contract. - Business - Contractor Talk

Who Can Bind A Home Owned By An LLC To A Contract.

 
Thread Tools Search this Thread Display Modes
Old 12-08-2017, 06:15 PM   #1
Registered User
 
SeaBear's Avatar
 
Trade: General Contractor
Join Date: Apr 2017
Posts: 5
Rewards Points: 12

Who Can Bind A Home Owned By An LLC To A Contract.


Hey Guys, Happy Holidays! Haven't been on here for some years. I am in need of some sound advice. I have a potential client who says she has a home that was left to her by her parents. However, the house is owned by an LLC with an attorney as the registered agent. Who has the authority to bind the LLC to a contract? The LLC doesn't list its members publicly only the resident agent. So how would I know if she could legally bind the LLC to a contract? My first time dealing with this any advice would be greatly appreciated.

Last edited by SeaBear; 12-08-2017 at 06:18 PM.
SeaBear is offline  

Warning: The topics covered on this site include activities in which there exists the potential for serious injury or death. ContractorTalk.com DOES NOT guarantee the accuracy or completeness of any information contained on this site. Always use proper safety precaution and reference reliable outside sources before attempting any construction or remodeling task!

   

Advertisement

 

Old 12-08-2017, 06:52 PM   #2
Particulate Filter
 
Metro M & L's Avatar
 
Trade: Flooring
Join Date: Jun 2009
Location: Portland, OR
Posts: 4,371
Rewards Points: 1,356

Re: Who Can Bind A Home Owned By An LLC To A Contract.


Good question.

Sounds like you would need to contract with the executing attorney or perhaps a letter from him explaining the rights of the daughter to assume liabilities on behalf of the llc.

Liens attach to the structure; not the contracting individual. Liens are difficult to enforce however.

Keep the money in front of the work.

Advertisement

__________________
"A smart man learns from his mistakes; a wise man learns from the mistakes of others."

www.portlandhardwoodrefinishing.com
Metro M & L is offline  
Old 12-08-2017, 08:12 PM   #3
Registered User
 
SeaBear's Avatar
 
Trade: General Contractor
Join Date: Apr 2017
Posts: 5
Rewards Points: 12

Re: Who Can Bind A Home Owned By An LLC To A Contract.


Thanks, M & L That's my dilemma structuring it correctly so that there is no question that she has legal authority to authorize the work. I do have a clause that stipulates that the client warrants that they have the legal authority and shall indemnify me should it be found to be false. However, since I'm going into this with a lawyer already on that side. I need to cross my T's and dot my I's. Any other suggestions are welcomed.
SeaBear is offline  
   
 
Old 12-08-2017, 08:36 PM   #4
Pro
 
Fouthgeneration's Avatar
 
Trade: Masonry
Join Date: Jan 2014
Location: Mid west
Posts: 1,898
Rewards Points: 6,839

Re: Who Can Bind A Home Owned By An LLC To A Contract.


I'll play Devil's advocate: Any adult woman that isn't trusted enough by her parents to have a home in Her name is NOT completely competent in a 'Legal' sense......IMHO and most Judges/Juries might agree....

You have TWO customers, the trustee and the Woman living in the really nice 'basement' provided by her folks..... Only ONE probably has the funds to pay you....

Tell her to get possession/ control, then remodel.....

Til then, Drive on elsewhere.....
Fouthgeneration is offline  
The Following User Says Thank You to Fouthgeneration For This Useful Post:
Metro M & L (12-10-2017)
Old 12-09-2017, 12:29 AM   #5
Pro
 
daffysplumbing's Avatar
 
Trade: plumber
Join Date: Oct 2017
Posts: 157
Rewards Points: 668

Re: Who Can Bind A Home Owned By An LLC To A Contract.


I would not throw in the towel so quick. I tend to believe that most customers are honest and some customers have unusual circumstances in regards to legal ownership, but still have 100% power to control the property.

When the funds have been verified I tend to trust the customer and do the work as long as the customer keeps paying the bills according to the contract terms.

I use a monthly service called parcelquest.com to look up the legal owner of almost every property we work on. Almost every day, we find that the customers claiming to be the owners are not actually the owner, but they pay us tens of thousands of dollars and even make monthly payments.

I find that many children take over homes from deceased parents and never transfer or change the names on the Titles.

According to California construction laws, all you need to do is send the Preliminary Notice to the purported owner and you are free to put a lien on the property if the customer does not pay the bill.
daffysplumbing is offline  
Old 12-09-2017, 09:44 AM   #6
Pro
 
fast fred's Avatar
 
Trade: carpentry
Join Date: Sep 2008
Location: trailer in colorado where the rich live
Posts: 737
Rewards Points: 816

Re: Who Can Bind A Home Owned By An LLC To A Contract.


I deal work on lots of properties that are owned by an llc or owned by a trust, I have at least two jobs going right now that owned that way, someone is going to be responsible, just make them sign

never had a problem, if you smell something fishy then run it's that simple

the one fishy one I had was in a trust for a couple reasons, one was because he was a retired cia guy and they were keeping their family down low and off any records, typical house stocked full of guns and ammo with pictures of him and some presidents in his office he never liked to talk too much, but after knowing him a couple years he started saying hi to me, then one day I was looking at his book shelf and noticed a couple books he wrote about killing communists and terrorists
fast fred is offline  
The Following User Says Thank You to fast fred For This Useful Post:
Fouthgeneration (12-09-2017)
Old 12-09-2017, 02:08 PM   #7
Pro
 
SectorSecurity's Avatar
 
Trade: Low Voltage Wiring
Join Date: Nov 2013
Location: Ontario
Posts: 4,048
Rewards Points: 2,828

Re: Who Can Bind A Home Owned By An LLC To A Contract.


When someone comes at me with a lawyer I come out swinging with my own lawyer has never come back to bite me in the ass and has always been worth every penny.

Sent from my XP7700 using Tapatalk
SectorSecurity is offline  
The Following User Says Thank You to SectorSecurity For This Useful Post:
Metro M & L (12-10-2017)
Old 12-15-2017, 09:17 AM   #8
Registered User
 
SeaBear's Avatar
 
Trade: General Contractor
Join Date: Apr 2017
Posts: 5
Rewards Points: 12

Re: Who Can Bind A Home Owned By An LLC To A Contract.


Hey Guys, thanks for all your help and suggestions. I decided to sit this one out. It's great to have a forum where you can get objective opinions and help when needed. Thanks again and I wish you guys a Merry Christmas.
SeaBear is offline  
The Following User Says Thank You to SeaBear For This Useful Post:
SmallTownGuy (12-15-2017)
Old 12-15-2017, 12:10 PM   #9
Member
 
dcustar's Avatar
 
Trade: remodeling
Join Date: Sep 2017
Location: Norman, OK
Posts: 36
Rewards Points: 90

Re: Who Can Bind A Home Owned By An LLC To A Contract.


I know you passed on the job, so this is just an FYI for anyone else who winds up in a similar situation. In most states, the Secretary of State keeps records of the owners/officers of LLC's in that state. You can contact the Secretary of State in your state and ask for those names. You can try to contact the attorney/registered agent, and he/she may be willing to give you that information. If contracting with an LLC, you may want to have the person signing do so in his/her corporate capacity and in his/her individual capacity. If the person refuses to do so in his/her individual capacity, make sure you keep the payments ahead of your work. The contract with the LLC signed by an authorized person should be enough for the lien, but you may have to wait for a long time to collect. In SeaBear's case, the best protection is having the contract signed by the client and a corporate agent.
dcustar is offline  
The Following User Says Thank You to dcustar For This Useful Post:
Metro M & L (12-17-2017)
Old 12-17-2017, 09:58 AM   #10
Registered User
 
SeaBear's Avatar
 
Trade: General Contractor
Join Date: Apr 2017
Posts: 5
Rewards Points: 12

Re: Who Can Bind A Home Owned By An LLC To A Contract.


Thanks Dcustar, good feedback which I will use going forward when I encounter this situation again.

Advertisement

SeaBear is offline  


Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes Rate This Thread
Rate This Thread:

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
anyone have a contract example for selling/building a new home? 3bar Business 4 09-04-2015 12:19 AM
Writing a contract.. vos Business 14 03-24-2011 10:15 AM
The House of Tomorrow from the Recession Today NC2X4 General Discussion 11 02-28-2009 05:05 PM
Proposals...... AAPaint Painting & Finish Work 3 08-25-2007 08:47 AM

Join Now... It's Fast and FREE!

I am a professional contractor
I am a DIY Homeowner
Drywall Talk is for
PROFESSIONAL CONTRACTORS ONLY!

At DrywallTalk.com we cater exlusivly to professional contractors who make their living as a contractor. Knowing that many homeowners and DIYers are looking for a community to call home, we've created www.DIYChatroom.com DIY Chatroom is full of helpful advices and perfect for DIY homeowners.

Redirecing in 10 seconds
No Thanks
terms of service

Already Have an Account?