This is a SAMPLE FORM of a typical Real Estate LLC Operating Agreement. It doesn't do much more than create the legal framework for the actual Operating Plans of the Project. But its necessary to do this legal homework first. No matter what type of community you currently live in, this framework will allow you to compare and contrast with what you are familiar with and what you think should be the legal framework for a small community. This is some serious food for thought, and the LLC is the product of a century of attempts to create a fair legal corporation that can operate in the larger legal/gov't. context and the larger corporate context in such a fashion that people become participating Members and not just alienated Shareholders or Employees. The LLC is a whole new alternative for Land Planning & Development.
THIS OPERATING AGREEMENT is made and entered into as of DATE by and among Mustang Springs Ranch LLC, a NV LLC (the "Company") and the persons executing this Operating Agreement as Members of the Company and all of those who shall hereafter be admitted as Members (individually, a "Member" and collectively, the "Members") whose names and signatures shall appear on "EXHIBIT A, MEMBER LISTING; CAPITAL CONTRIBUTIONS" below, hereby agree as follows:
WITNESSETH:
1. Whereas, the Members desire to enter into this agreement ("Operating Agreement" or "Agreement") for the purposes of governing the Company, to and for the sole purpose of investing in, purchasing, selling, granting, or taking an option on lands solely for investment purposes and not as a trade. The Company shall not conduct any other business unless related to the business, unless approved by unanimous consent of all Members.
2. Whereas, the Members intend to operate the Business, appoint a person or persons to assume responsibility for certain management matters (the "Manager") and provide for the restriction on the transfers of ownership interests in the Company ("Interests").
NOW, THEREFORE, in consideration of the mutual premises below, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, it is agreed as follows: