Plain English Breakdown
The source states transactions are enforceable 'except as specified,' but does not list what those exceptions are.
AB-683: Rules for Limited Liability Company Certifications
This law allows limited liability companies (LLCs) to create a signed document proving they exist and who can act for them, which helps real estate transactions proceed safely.
What This Bill Does
- Allows LLCs to present a certification of their existence and authority to licensed escrow agents, real estate brokers, and title insurance companies or underwriters.
- Requires the certification to confirm that the company's operating agreement has not been changed in ways that would make its statements incorrect.
- Mandates that the certification be an acknowledged declaration signed by all authorized signers of the LLC.
- Permits people who rely on this certification without knowing it is false to avoid legal liability for acting based on it.
- Ensures transactions and liens created using these certifications are enforceable against the LLC's assets, with some exceptions.
- Allows county recorders to charge a fee that covers their reasonable costs for recording these documents.
Who It Names or Affects
- Limited Liability Companies (LLCs) in California
- Licensed escrow agents and real estate brokers
- Title insurance companies or underwriters
- County recorders who file the documents
Terms To Know
- Certification of existence and authority
- A signed document that proves an LLC is currently active and lists the people allowed to make decisions for it.
- Acknowledged declaration
- A formal statement where signers confirm their identity before a notary or official witness.
Limits and Unknowns
- The law does not require the state to reimburse local agencies for costs created by this bill.
- Protection from liability only applies if the person did not actually know the information in the certification was incorrect.
- Transactions and liens are enforceable against LLC assets except as specified.