A Limited Liability Company (“LLC”) Resolution is a document that authorizes the LLC to take a certain action. The LLC Resolution is signed by members of the LLC and therefore ratified by the members of the LLC. In the context of real estate, an LLC Resolution typically authorizes the sale or purchase of real estate and gives authorization to a certain person or people to sign closing documents on behalf of the LLC.
Closing agents in real estate closings may require your LLC to provide a resolution if it is selling real estate. They will require that the resolution identify who can sign on behalf of the LLC, authorize the LLC to sell the real estate, and be signed by all members of the LLC. The closing agent wants to be sure that everyone with membership interest in the LLC wants to sell the property and the person signing on behalf of the LLC has authority to sign.
When considering an LLC resolution, review LLC documents, such as the Articles of Organization and Operating Agreement, to see whether there are any limitations on resolutions. An LLC’s governing documents may place restrictions on resolutions, and they may also indicate how many members need to sign the resolution for it to become effective.