Legal Question in Real Estate Law in California

You have a LLC with 3 members of equal interest. The LLC owns an income property. One member dies and in their will they donate their share of the LLC to a charity. Can the Charity force a sale of the income property?


Asked on 10/23/15, 1:47 pm

1 Answer from Attorneys

Not unless the Operating Agreement of the LLC says they can. A properly drafted LLC Operating Agreement, however, would preclude the charity, or anyone other than the original members for that matter, from becoming members or otherwise exercising ANY control without the approval of the remaining members. A good LLC OA has thorough provisions for restricting successors to the economic interests of members from becoming actual members without approval. If your OA does not have such provisions and no one has died yet you REALLY need to get to a good attorney and amend your OA.

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Answered on 10/23/15, 3:34 pm


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