Guide
Buying in an LLC or Trust: Information Title Teams Need
When the buyer is an entity or a trust, the title team needs proof that it exists, proof of who may sign for it, and identifying details for the entity and the people behind it. Requesting these at opening avoids last-minute delays at closing.
By TitleMagic · Published · 5 min read
LLCs, corporations and partnerships
- Exact legal name, state of formation and EIN
- Formation documents (for example articles of organization or incorporation)
- Operating agreement, bylaws or partnership agreement, or the parts showing who may act
- A recent certificate of good standing from the state of formation
- A resolution or consent authorizing the purchase and naming who signs
- Names and contact details of the authorized signers
Trusts
- Exact name and date of the trust
- A certification or certificate of trust, or the trust pages your underwriter requires
- Names of the current trustees and how they sign (jointly or separately)
- Taxpayer identification number used by the trust, where applicable
Federal reporting can add questions
Federal anti-money-laundering rules can require reporting of certain residential purchases by entities and trusts, especially purchases without bank financing. These rules have changed in recent years, so check current FinCEN guidance and your underwriter’s instructions for what to collect about beneficial owners and payment sources.
Making the request painless
Entity buyers often have several people involved: an owner, a manager who signs and an attorney who holds the documents. TitleMagic lets the processor send each signer a personal Magic Link, collect uploads such as formation documents with the form, and see at a glance what is still missing.
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