Q: Can I be sued personally for a property I purchased under an llc?
I purchased a property under an llc. Unbeknownst to me the deed was fraudulent. I signed the deed back to the real owner. I did some repairs until I found out the deed was fraudulent. The real owner is now suing my llc and me personally for treble damages done to the property. Can they go after me personally? BTW the house was completely destroyed when we started cleaning and I have videos of the inside before I started repairs. FBI was on the case and saw I had nothing to do with it.
A: Anyone who pays the $210 filing fee can sue anyone for anything. Your issue is whether you can win. That will turn on the documents you have, and the facts of what you did, none of which are clear from your post.
Steven Warren Smollens agrees with this answer
A: There are circumstances in which the owner of an LLC could have personal liability... particularly if it is alleged there was fraud. If you have been sued, you should immediately retain legal counsel as there are time limits to responding to litigation or a default judgment may be taken against you.
Steven Warren Smollens and Peter J. Weinman agree with this answer
1 user found this answer helpful
A:
Did you obtain title insurance when you purchased?
Jack
1 user found this answer helpful
A: Typically, forming an LLC provides its members with protection against personal liability for the business's debts or legal issues. However, there are instances where a court may allow plaintiffs to "pierce the corporate veil," holding owners, members, or managers personally liable if they can demonstrate that the LLC was used for fraudulent purposes, commingled funds, or other wrongful conduct. Since you mentioned the deed was fraudulent, but also noted the FBI determined you were not involved in the fraud, it would be critical to establish that you acted in good faith and with due diligence in your dealings with the property. To mount a robust defense against any claims for personal liability, you should gather all evidence of your property's condition and your subsequent actions, and work closely with legal counsel to navigate this complex situation.
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