If you own real estate, and it is titled in the name of your LLC, then you have an alternate form of conveyance. In the traditional sale of real estate, the parties to the agreement execute a purchase agreement, whereby the Seller agrees to sell and transfer title to the real estate for a set price, subject to the terms, conditions and contingencies in the purchase agreement. Once all the conditions have been fulfilled, and upon payment of the purchase price, a deed is recording transferring the real estate from the Seller to the Buyer.
However, an alternative mechanism of conveyance can be the sale of the LLC. In this instance, the Owner of the LLC agrees to sell all of his/her interest in the company to a Buyer for a set price. Instead of a real estate purchase agreement, the parties execute a Unit Purchase Agreement, which shall convey the Owner’s unit interest in the LLC to the Buyer, subject to the terms and conditions of the Unit Purchase Agreement. Upon fulfillment of the terms and conditions of the Unit Purchase Agreement, the Owner will transfer his interest in the LLC to the Buyer. At this point, no deed is recorded pertaining to the real estate. Since the Buyer is now the “new” owner of the LLC, he acquired title to the real estate by virtue of his acquired ownership interest in the LLC. Under this scenario, there is no public record of the transaction, and no real estate conveyance.