Bill > AB683

This bill would allow a limited liability company (LLC), which is a business structure that offers liability protection to its owners, to provide a certification of its existence and authority to specific entities like escrow agents, real estate brokers, and title insurance companies. This certification would serve to confirm the LLC's current status and identify who has the power to act on its behalf. The certification must include specific details about the LLC, such as its name, formation jurisdiction, and a list of authorized signers, and must state that its governing documents haven't been changed in a way that would make the certification inaccurate. It must be signed by all authorized signers and can be recorded with the county recorder, especially if it pertains to real property. The bill also clarifies that parties who rely on this certification without knowing it's incorrect are protected from liability, and transactions made based on such reliance are enforceable against the LLC's assets, unless the person relying on the certification knew the authorized signer was acting outside the LLC's operating agreement.

Budget and Finance

https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=202520260AB683