I keep my property at an LLC, and I signed a contract with this Owner A. The Owner A of the LLC gave very short notice that he is going to transfer ownership to another person, Owner B (whom I don't like). I want to leave immediately but my contract with Owner A says I need to give 30days notice. Once ownership gets transferred to Owner B, is my contract still valid? Does it automatically transfer to Owner B? Do I still need to give 30days notice? Or is my contract now terminated and I am free to leave and take my belongings?

  • 3
    Is the contract with Owner A or with the LLC owned by Owner A?
    – Philipp
    Aug 29 '17 at 16:06

The LLC is its own legal person. Your contract with the LLC it is not affected in any way by a change in the ownership of the LLC.

  • 3
    ...unless, of course, the contract specifically says it is. But I guess that's obvious.
    – Philipp
    Aug 29 '17 at 23:21
  • Any chance to void a contract for example if I sell my LLC to a known fraudster?
    – gnasher729
    Aug 31 '17 at 20:25
  • 1
    @gnasher729 a company is a seperate legal entity from its owners- I can't void a contract with your brother-in-law if you divorce his sister.
    – Dale M
    Aug 31 '17 at 20:33
  • @Philipp It isn't obvious and it isn't uncommon to have contracts that create a right to terminate upon a transfer of ownership of a company (e.g. mortgages and other loans).
    – ohwilleke
    Sep 1 '17 at 6:59

If your "contract" is a residential lease, that would include a property right ("possession" or "occupancy") that "goes with the property" to be honored by any new owners until the lease expires or is properly terminated by its terms and under state laws. Transfer of ownership of a property, let alone ownership of the company that owns the property, generally doesn't affect a lease. A party to the lease would still need to give proper notice of termination, regardless of who happens to own it.

  • Both answer are correct barring specific facts to the contrary in the agreements in question.
    – ohwilleke
    Sep 1 '17 at 7:01

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