DBA license and closing on property - NC
I have an investor friend that I birddogged a property for. He signed the papers with his business name (a doing business as name) and now the closing attorney says that he can't close the property unless it is titled in his actual name.
Is this correct? I thought that a DBA was the same as your name after being licensed.
Any insights would be greatly appreciated.
Roger
Roger, Thats something I may have asked you.
In CT dba is any name you pick( with or without copyrite serch) there could easly be 3 bobs carpet cleaning. I don't know what type of lic or reg your friend has With a contractors lic wich is really a state of ?? department of consumer protection registration. They never botherd me about not even letting them know about my dba names.
They only protect consumers not even commercail accounts let alone RI investers.
If this hasent helped or I missed the mark somehow please send me a message
Appreciate the response, David, but it didn't really answer the question, no.
Basic question was can you have the deed/title made out to a DBA name or not?
In NC, to get a DBA, you have to apply for a license at the county's register of deeds. If there is no other DBA (or other business entity) using that name within the county, then you get a license granting you the name within the county. So here, there wouldn't be 3 'bob's carpet cleaning', at least not within the same county.
Roger
rajwarrior,
I realize all States have State Statutes which is the law on how things are done legally.
I have never heard that you cannot take title to a property with your DBA name, it does not make any sense to me. It really is not a license it is usually registered at the county recorders office, such as Joe Doe DBA Private Investor, if the State recognized the DBA why wouldn't an Attorney?
I would have to know what law prohibits the use of a DBA when taking title to a property. This would be my question to the Attorney.
John $Cash$ Locke
PS: Just saw where you use the county registers office the same as our county recorders office also they call it a license where you are, still I cannot belive it can't be done.
[ Edited by JohnLocke on Date 06/20/2003 ]
Well John, that's the problem he's having. The state (meaning NC) people said that it wasn't a problem, but the closing was supposed to be today and the attorney wouldn't close it because the deed came back titled only in the investor's DBA name.
Not a very good attorney, IMO. I having my attorney check it out but I thought I'd post the question here, too.
Thanks,
Roger
Here's my guess. Your DBA is a "fictitious" name and not a legal entity. The attorney is correct.
You may be right, Lloyd, but could you elaborate a little more as to why that would be correct.
If the State recognizes the DBA name the same as your own personal name on any other business transaction, why not on real property?
Thanks for the insight,
Roger
Lloyd,
Glad to meet you.
CRE, Inc., a Nevada corporation wants to invest creatively and be called "Private Investor". CRE, Inc. must file a DBA with the State of Nevada in order to operate under "Private Investor".
By registering the fictitious name (DBA), the corporation may use its name or "Private Investor".
One advantage of registering a fictitious name (DBA) is that you can obtain a Federal Identification Number for the fictitious name to enable you to open a bank account for the business under the fictitious name.
If the government recognizes a (DBA) fictitious firm name why won't this Attorney. I do not think it would matter whether it was CRE, Inc or Joe Doe getting the DBA as to whether they could do business or not. A legal entity would not be a person in my opinion in the sense we are referring to.
John $Cash$ Locke
Trying to follow this.
My LLC name is regesterd and I have bought and sold useing it.
My LLC description names realestate and remodeling ventures. I do'nt have a lic. as an invester Just home improvement.
My tax ID and name identifys me for llc purposes.
My reg # identifys me consumer purposes reguardless of nany name I use.
I set up with a good lawyer and am now hopeing I'm OK.
DavidBrowne,
You are set up fine with your company the question seems to be can you purchase a a property using a DBA as an individual.
I own a Bail Bond Company it is registered as John Locke DBA Anytime Bail Bonds. No corporate entity.
I collateralize bail bonds sometimes using a persons property. If they default I then can sell the property. I have never had a problem with any title company selling the property when a person defaults on their bond.
Anytime Balil Bonds is listed as the Grantee on the paperwork, so all the title company cares about is seeing my recorded DBA as proof of ownership.
John $Cash$ Locke
Just an update on this.
We did manage to get something clarified. Lawyers still can't agree as to whether you can or can't sign as the DBA, BUT even if you do, this investor cannot because he is married and the wife is not included in the DBA.
Since NC is a spousal state, all real estate transaction must have both spouses listed on the deed.
Roger
rajwarrior,
Glad to see the Attorneys are confused, does this mean the bill goes up?
Simply have the wife Quit Claim her interest to the DBA. This is done every day, so there should be no problem.
John $Cash$ Locke
Yeah, I love it when the lawyers give the big legal answer to the question, "it can't be done because i've never seen it before." Guess that means it must be against the law, right
The attorney is using the spouse clause now against the DBA. By using only the DBA name, the wife wasn't even placed on the deed, which is required by NC law.