Transaction checklist
| Phase | Action | Watch for |
|---|---|---|
| Offer | Write the contract in the entity name (LLC, IRA Trust, or Solo 401(k) trust) | Never use your personal name, not even as an interim placeholder |
| Offer | Sign as manager (LLC) or trustee (trust); include your role in the signature block | "Layla Hassan, Manager" or "Jordan Kim, Trustee"; not just your name alone |
| Earnest Money | Wire or check from the plan entity bank account | Personal funds are prohibited, even temporarily. No reimbursement workaround exists |
| Pre-Closing | Pay all inspection, appraisal, and title fees from the plan account | Same rule as EMD; every dollar must originate from the plan |
| Closing | Title vests in the entity name, exactly as written on the contract | Confirm the entity EIN (not your SSN) is on file with the title company |
| Closing | Sign closing documents as manager or trustee | Have your operating agreement or trust agreement ready for the title officer |
| Closing | Wire purchase funds from the plan bank account | No custodian approval or routing required with checkbook control |
| Closing | Retain all closing documents in your plan records | Closing disclosure, deed, title insurance. These are plan records, not personal files |
| Ongoing | Pay all property expenses from the plan account | Insurance, taxes, HOA, repairs, management fees. No personal funds |
| Ongoing | Deposit all income to the plan account | Rent, sale proceeds. Directly to the entity account, never personal |
What if my plan isn't set up yet?
If you find a property before your plan is funded, two legitimate options exist. A trusted third party who is not a disqualified person can lock up the contract with the right to assign it to your plan entity once established. Alternatively, once the plan entity name is confirmed (typically within a few days of your application), the plan can borrow funds short-term from a non-disqualified person to cover pre-closing costs while the plan funding transfer is in process.
You cannot personally lock up a contract and assign it to your plan, and you cannot lend money to a third party for them to lend to your plan. Both create self-dealing prohibited transactions under IRC Section 4975. See What if I find a deal before my plan is ready? for full detail on both approaches.
Frequently Asked Questions
Does the title company need any special documentation?
Most title companies will request the entity's Operating Agreement or Trust Agreement and EIN letter. Have these ready at least a few days before closing. Some title officers will also want to confirm the entity is authorized to purchase real property; your plan documents cover this. Contact the title company early to understand their specific requirements.
What if the title company requests a Certificate of Good Standing for my LLC?
This is a common request. A Certificate of Good Standing conveys that the LLC is current with all state filing, fee, and tax requirements, and is typically considered valid for 60-90 days. When needed, you can request one directly from the state where your LLC was formed. Most states make certificates available online through the Secretary of State's office. Fees are typically nominal. Pay the fee from your LLC bank account and provide the certificate to the title company promptly to avoid closing delays.
What name goes on the deed?
The deed should reflect the exact legal name of your plan entity; for example, "Checkered Flag Holdings LLC" or "Surf Break Investment Trust, Carlos Martinez, Trustee." Verify the name matches your entity formation documents precisely. An error in the deed can create title issues that are expensive to correct.