[WSBARP] House transfer question

[Anthony Gibbs]

I'm hoping for some feedback on the following situation:

4 individuals (2 sets of husband & wife) bought a vacation house together,
each contributed significant money for upgrades and furniture, etc. All
four are individually named on the mortgage and the deed.

The house was meant to become the sole asset of an LLC formed for the
purpose of holding the property. The LLC was created, but the house was
never transferred to the LLC. Funds for the upgrades came from a bank
account held by the LLC for that purpose and funded by the four indivudals.

The 2 sets of H&W do not wish to continue their joint ownership and HW1
have offered to buy HW2 out of their 50% share of the house.

My question(s): since the house was never formally transferred to the LLC,
even though their intent was for the transfer, and the house/mortgage
remain in their four individual names as tenants in common, is the LLC
relevant to the house transaction? In other words, when drafting the
transfer agreement of the house, must the LLC be a named party to the
transaction? Could the LLC issue be handled in the recitals beginning the
transfer agreement, something like: "Funds from the LLC were contributed by
the four individuals named and the parties agree that any itemized money
transfers between the individuals are in reconciliation of contributions to
and payments from the LLC."

In a nutshell, I'm trying to anticipate how a schemer might try to come
back and unwind the transaction on the grounds that the LLC (which was not
properly governed and could be pierced) was not properly addressed.

Sorry about the long-windedness but I'd appreciate any thoughts on the
topic or, perhaps, even a couple minutes of phone time.

Cheers,
Anthony

-- 
Anthony F. Gibbs | Attorney
The Moceri Law Group PLLC
(888) 510-1961

anthony at mocerilaw.com
www.mocerilaw.com

1310 North I Street, Suite B
Tacoma, WA 98403-2139

15600 Redmond Way, Suite 101
Redmond, WA 98052

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