[WSBARP] REETA / Business Promoter

[Samuel M. Meyler]

Listmates,

 

Any input on the following would be appreciated.  Two business partners
intend to form an LLC and purchase a property together.  For various
reasons, they did not form the LLC prior to the purchase and one individual
ended up purchasing the property in their own name.  Now they seek to
transfer the property into an LLC where each individual owns a 50% interest.
I realize that there are various issues, including the fact that this
transfer will trigger the due on sale clause with the lender, but my
question is whether or not an exception to paying REETA might apply?  After
all, the purchase of the property was pre-incorporation activity of a
promoter of the LLC and the individuals acted in concert.  The property was
purchased on 2/14/18 and the Cert of Formation for the LLC was filed with
the Secretary of State on 2/26/18.  Is there an exemption that may apply
here that I am not seeing?    

 

 

Samuel M. Meyler

Meyler Legal, PLLC 

221 1st Ave. West, Suite 320

Seattle, Washington 98119

Tel:  206.876.7770

Fax:  206.876.7771

Email:   <mailto:samuel at meylerlegal.com> samuel at meylerlegal.com

  

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