How do I make sure that a member in an LLC doesn't sell a property without the other member knowing?I have an LLC with another member. We ha...

Question

How do I make sure that a member in an LLC doesn't sell a property without the other member knowing?

I have an LLC with another member. We have a partnership agreement, the articles of organization and the EIN tax number. If one partner wants to sell a property and run away with the money, he can do it. How does one partner prevent the other partner from doing that? I understand that writing in the partnership agreement that both signatures are needed is not enough because nobody wants to see the partnership agreement anyway, and it can be falsified easily.

Answer

From the tenor of your question, I will presume that you cannot undertake a cooperative effort with your partner to make sure the two signature requirement will be observed. In that case, one effective measure would be to record a document with the Register of Deeds indicating this restriction. Unless the sale occurs soon or has already occurred, that document will show up on a Title Commitment or title search. This measure comes at a cost - your partner will probably view this move as at least somewhat hostile when it is discovered. There are other measures and terms of this document I could consult with you about.