Legal Question in Real Estate Law in California
I just dissolved my California Limited Liability Company and distributed its only real estate asset to me as its sole member. The LLC still needs to wind down and therefore should stay on title until all of its business is concluded or provided for. Can the grant deed conveying title to me include the LLC as a joint tenant provided there is a written agreement that the LLC has no fee interest in the land but rather are limited to use the land as would a tenant paying rent.
3 Answers from Attorneys
I don't understand the basis for your conclusion that the LLC should stay on title because it still needs to wind down. Why is this so? Also, if the LLC has already distributed its real estate asset, it is, therefore, already "off title" -- right? Did the LLC receive any cash or other consideration in exchange for distributing the title, or does it have any other assets? What about its liabilities? Property should not be distributed to members unless the LLC's liabilities to outsiders are provided for or paid off.
Sounds like a "do it yourself" dissolution. You need to make sure the statutory requirements for liquidation have beem met. Assure all creditors have been paid. When you are sure, deed the property out to the members or member. Be careful or you will create a property tax reassessment. Also be sure , if there is any mortgage, you do not trigger the due on sale or transfer clause.
Do not place multiple nanes on title. You will just make a mess of title.
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