In previous articles, we've discussed real estate transactions with legal entities. Specifically, we've talked about an agent’s actual, implied, and apparent authority to enter into transactions on behalf of a business entity. But how can you verify that a corporate officer has legal authority? That’s our topic for today’s article.
Review The Following
Here are some quick tips for verifying that a corporate officer has legal authority. Review and examine the following to determine if the officers signing has express corporate authority to convey the real property on behalf of the corporation:
- Certificate of Good Standing from Secretary of State;
- Certified copies of the articles of incorporation and any amendments;
- Corporate director and shareholder minutes, bylaws, and stock transfer bylaws records;
- Organizational Minutes;
- Corporate resolutions approving action of the officer by the board of directors;
- Certificate of Incumbency of officer signed by the corporate secretary {The document attests that the persons listed are actually officers of the corporation and are authorized to sign};
- Opinion from the corporation’s attorney;
- Affidavit of a corporate officer.
Commercial Title Experts You Can Trust
At Commercial Partners Title Company, our goal is to make your commercial transaction as simple as possible for you. We guide you through the entire process from the planning stages, all the way to the closing table. Our team consists of escrow agents, title underwriters, and more. Contact our title experts today to learn more about our services and get started with your transaction. Our main office is located in Minneapolis, but we work with clients across the country.