Real Estate LLC Operating Agreement Template

This Real Estate Operating Agreement (hereinafter referred to as the “Agreement”) made and entered into this [Document.CreatedDate] by and between:

​[Member1.FirstName][Member1.LastName], 

​[Member2.FirstName][Member2.LastName], 

​[Member3.FirstName][Member3.LastName]​

Hereinafter referred to as “Members” collectively in this “Agreement”.

Real Estate LLC Details

1. Name of the LLC:

   1. The name of the Real Estate LLC is (insert name).

2. Date of formation:

   1. The LLC was formed on the (date).

3. Governing laws:

   1. The LLC is formed under the laws of the state of (state name).

4. Registered address:

   1. The LLC’s registered address is (insert address).

5. Purpose of business:

   1. The LLC’s business purpose is (insert LLC business purpose).

6. Term:

   1. The term of the LLC is (insert number of years the LLC will be active).

Members ownership

Member 1:

​[Member1.FirstName][Member1.LastName] with ownership of (insert percentage of ownership)% with a mailing address of [Member1.StreetAddress], [Member1.City], [Member1.State], [Member1.PostalCode].

Member 2:

​[Member2.FirstName][Member2.LastName] with ownership of (insert percentage of ownership)% with a mailing address of [Member2.StreetAddress], [Member2.City], [Member2.State], [Member2.PostalCode].

Member 3:

​[Member3.FirstName][Member3.LastName], with ownership of (insert percentage of ownership)% with a mailing address of [Member3.StreetAddress], [Member3.City], [Member3.State], [Member3.PostalCode].

Contributions and Distributions

Each Member hereby agrees to contribute the following amount of cash (or other property acceptable to the other Members) to the LLC:

(insert amount or property description) – [Member1.FirstName][Member1.LastName]​

(insert amount or property description) – [Member2.FirstName][Member2.LastName]​

(insert amount or property description) – [Member3.FirstName][Member3.LastName]​

All contributions shall be made within (insert number) days of the execution of this Agreement.

Allocation of Profits and Losses

The Members hereby agree that the profits and losses of the LLC shall be allocated among the Members in proportion to their respective ownership interests in the LLC.

Member’s Voting Rights and Title

​[Member1.FirstName][Member1.LastName] has (insert number) % voting rights and is the [Member1.Title].

​[Member2.FirstName][Member2.LastName] has (insert number) % voting rights and is the [Member2.Title].

​[Member3.FirstName][Member3.LastName] has (insert number) % voting rights and is the [Member3.Title].

Transfer of Ownership

No Member may sell, gift, lease, or otherwise transfer any ownership interest in the LLC without the prior written consent of the other Members, which consent shall not be unreasonably withheld, conditioned, or delayed.

No Member may pledge or hypothecate any ownership interest in the LLC as security for any obligation.

Management of Properties

Real estate properties shall be:

• Acquired in the name of the LLC, and managed by the Members.

• All interested parties shall execute all documents necessary to effect such acquisition and to evidence title in the name of the LLC.

• The expense of management, including but not limited to, real estate taxes, property insurance, mortgage or loan payments, improvements, and ordinary or necessary maintenance and repairs, shall be borne by the LLC.

Rights and Responsibilities of Members

Subject to the provisions of this Agreement, the Members shall have the following rights and responsibilities:

• ​[Member1.FirstName][Member1.LastName] 

(insert member responsibilities and rights)

• ​[Member2.FirstName][Member2.LastName]​

 (insert member responsibilities and rights)

• ​[Member3.FirstName][Member3.LastName]​

(insert member responsibilities and rights)

Dissolution and liquidation

The LLC shall be dissolved and liquidated upon the earliest date if the following occurs:

1. the LLC’s stated term expires;

2. the death, resignation, expulsion, or bankruptcy of a Member; or

3. a vote or consent of Members holding more than (insert number)% of the then outstanding ownership interests of the LLC, acting in good faith and in the best interests of the LLC.

Upon the dissolution and liquidation of the LLC:

1. All LLC assets shall be distributed to the Members in proportion to their respective ownership interests in the LLC;

2. All debts and other liabilities of the LLC shall be paid in full;

3. All books and records of the LLC shall be delivered to the Members; and

4. The affairs of the LLC shall be wound up as expeditiously as is consistent with the best interests of the Members.

Non-competition

During the term of this Agreement and for a period of (insert number) years following the expiration or termination of this Agreement, the Members agree not to engage in a business that is similar to or in competition with the business of the LLC.

Books, Records, and Tax Returns

The LLC shall keep accurate and complete books and records of account and shall keep minutes of the meetings of its Members and managers.

The LLC’s financial books and records shall be made available to any Member upon request.

The LLC shall prepare and file all necessary tax returns in a timely and accurate manner.

Audits

The LLC shall have its books and records audited by a certified public accountant at least once every (insert number) year/s. The results of the audit shall be made available to the Members.

Dispute Resolution

In the event of a dispute between the Members, the Members agree to attempt to resolve the dispute through mediation. If the dispute cannot be resolved through mediation, the Members agree to submit the dispute to binding arbitration.

Member’s Limited Liability

The liability of each Member shall be limited to the amount of their contribution to the LLC. No Member shall be liable for the acts or omissions of any other Member.

Severability Provision

If any provision of this Agreement is invalid or unenforceable in whole or in part, the remaining provisions shall not be affected thereby.

Governing Laws

This Agreement shall be governed by and construed in accordance with the laws of the State of (insert state).

Agreed and Accepted

IN WITNESS WHEREOF, the parties hereto have executed and delivered this agreement as of the date first above written;

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