Legal Entity Ownership Program (LEOP) – Definition of Legal Entity and Ownership Interest
A legal entity is any business organization that is legally permitted to enter into a contract, including a contract for the purchase, sale, or lease of real property. Legal entity interests may be owned individually, owned by another legal entity, or held in trust. Some of the most common legal entities holding title to real property in California are:
Limited liability companies (LLC)
Massachusetts business trusts
Real estate investment trusts
In the case of corporations, an ownership interest is represented by ownership of voting stock. In the case of partnerships or limited liability companies, an ownership interest is represented by total interest in capital and profits.
For purposes of determining whether a legal entity has undergone a change in control or change in ownership, the acquisition or transfer of ownership interest in the legal entity is considered.