LLC Articles to prove ownership
If I were to purchase Real Estate under a NM LLC, and misplaced/lost the Articles of Organization, have I essentially lost my property? How can I guard ownership of my LLC?
Also, a NM LLC seems to be rather "assumable" by anyone. Would simply possessing the Articles of Organization for the LLC be strong enough proof in a legal case? Perhaps, for example, if someone pretended to be owner and tranferred assets away from the LLC? Your time is greatly appreciated.
JJ Luna Responds:
True that someone could order Articles and make up their own Operating Agreement and sell or encumber property. If the conveyance is not fraudulent (which would be rare) and it is a proper negotiable instrument then a problem could occur creating a loss to the true owner.
Normally, maintaining possession of your property is best for avoiding this. But for assets not monitored closely or kept in regular possession ( like a full time residence) one method of protection is to encumber the property with a loan from another LLC. The note could be recorded in order to "cloud the title" and make it more difficult. Might even work if note is not recorded.