Do You Need a Certificate of Good Standing for a Real Estate Closing?

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Real-estate closings
Quick answer

A Certificate of Good Standing is commonly requested when an LLC, corporation, partnership, or other entity buys, sells, owns, refinances, borrows against, or guarantees obligations involving real property.

Formation stateOften required
Property stateMay also be requested
Fresh issue dateConfirm before ordering

Why the closing team may request it

The certificate helps the title company, lender, and attorneys confirm the entity’s legal name, jurisdiction, and state-record status as of the issue date. It can support preparation and review of deeds, mortgages, loan documents, affidavits, settlement statements, and entity-authority records.

Transactions where it is commonly requested

✓ Commercial purchases and sales
✓ LLC-owned residential investments
✓ Refinancing entity-owned property
✓ Construction and bridge loans
✓ Entity transfers tied to property
✓ Portfolio and multi-property closings
✓ Special-purpose entities
✓ Business guarantors in the transaction

Which state certificate is needed?

The closing team may request a certificate from the entity’s formation state, the property state, or both. For example, a Delaware LLC registered in New York may be asked to provide official status evidence from each jurisdiction.

Confirm the required age before ordering

Closing instructions may require a certificate issued within 30, 60, or 90 days. There is no universal standard, and a delayed closing can make a previously ordered certificate too old.

Is the certificate enough by itself?

Not always. A closing package may also require other documents that serve different purposes:

Certified formation documents
Operating agreement or bylaws
Resolutions or written consents
Incumbency or officer certificate
Foreign-registration records
Tax clearances or lien records

Closing-order checklist

  • Exact legal entity name and entity number
  • Formation state and property state
  • Exact closing date, time, and time zone
  • Certificate freshness requirement
  • Electronic PDF or original-paper requirement
  • All buyers, sellers, borrowers, guarantors, and property-owning entities

What if the business is not in good standing?

The closing may be delayed while the entity resolves overdue reports, franchise taxes, state fees, registered-agent issues, reinstatement, or another compliance problem. The closing attorney should determine whether alternative evidence is acceptable.

Have an upcoming closing?

Provide the entity, state, required date window, and deadline.

Order for a closing →

Last reviewed June 29, 2026. Closing requirements vary by transaction and recipient. This guide provides general information and is not legal advice.