Posted by K. Lee on August 17, 1999 at 19:37:45:
As a followup, if the option has been signed by the seller, you could sell it to another legal entity (hopfully one set up by an attorney this time)for the smae price you paid, or let the option lapse and then create another one without your former partner. I noticed that there was no time frame mentioned for the option. If there is none I don’t believe it’s an enforceable option.
Legal HELP…I want to get out of partnership…how can I? - Posted by Emmett-NC
Posted by Emmett-NC on August 16, 1999 at 21:29:27:
Well I was looking into a deal with an out of state owner, and I kind of mentioned it to this one rehabber. He kinda inched his way in by saying that he knew some buyers and some guys who could move quickly. So I decided to sign up a make shift partnership agreement with him, because this would be my first deal. Well he had no such buyer, had no clue about contracts, and was not as savvy as I thought. Right now we are waiting for the seller to sign an Option to Purchase. I want out of this partnership, because I think the guy is totally riding my deal, and he is not living up to his part… Well here is what my lil drawn up agreement says. It was notarized.
“I, My name, having received an Option to Purchase Real Estate, hereby described below…legal description, etc…Do hereby assign 50% of the beneficial interest in the above property to HIS NAME, whose address is…ETC.
The proceeds of the sale of said property are to be divided into 50% portions. This agreement is contingent upon the exercise of the said Option to Purchase. Should the Option not be exercised this agreement becomes null and void.”
Before I hear it I KNOW I WAS DUMB to sign up with him. Gotta learn to keep the big mouth shut. But a lesson well learned. But the question is…can I get out of this without being sued? Or is there anyway out at all? This contract was drawn up by me on my computer, and not by a lawyer. So those are the facts. I appreciate any help you can provide!!!
Re: Legal HELP…I want to get out of partnership…how can I? - Posted by Bill
Posted by Bill on August 18, 1999 at 08:29:07:
Let’s see… was there any consideration paid by the assignee for this? If not, I would ask an attorney if such an assignment is enforceable.
Once burned…twice shy… - Posted by SusanL.–FL
Posted by SusanL.–FL on August 17, 1999 at 14:02:59:
SURE hope you can get out of that deal.
We (husband & I) made the mistake of taking on partners. (8/1/96 – this date goes down in infamy!)
These ‘partners’ were also ‘coat-tail’ riders.
If I have learned NOTHING else (from this board), it is: DO YOUR HOMEWORK!! (due diligence, I believe, is the term used quite often)
I didn’t-----and am still paying the piper three years later.
A regretable lesson, to be sure, but all part of the learning process for me…
One thing my accountant said at the time: “partnerships are similar to marriages; you don’t always agree; arguments can ensue. If there is a lot at stake and you want out, it might not be that easy and you might have a lot to lose”.
BOY, do I WISH I had listened…
P.S. I don’t even have my husband as my “partner” any more. Eventually, I just found that it was lot easier for me to do a deal quicker if I was in the driver’s seat. I felt that if I couldn’t manage the deal by myself, then maybe it was not for me.’
Good luck, and I seriously mean that. I have a feeling everything will work out ok for you.
Re: Legal HELP…I want to get out of partnership…how can I? - Posted by Michael Morrongiello American Note
Posted by Michael Morrongiello American Note on August 16, 1999 at 23:29:27:
It would sound like your loosely worded “partnership agreement” is contingent on the seller agreeing to give you an option. If that has yet to take place, I am not so sure what grounds your so called “parther” could claim with regards to having rights in the property. Why not have the seller give that option to another entiry of a different name (read between the lines here). This may let you off the hook with your “partner” on the grounds that an option was never provided to you and him.
Remember the old saying “preventive law is a lot cheaper than curative law…” - As you now know the time to have seeken advice was BEFORE you entered into this agreement. If nothing else we all have made mistakes in the past. The KEY is to learn from them. Thanks for sharing your story.
Re: Legal HELP…I want to get out of partnership…how can I? - Posted by JohnG
Posted by JohnG on August 16, 1999 at 22:26:15:
Another lesson learned.
When I started out (18 yrs ago) I too, would jump at any opportunity to do a deal.
Now that I have realized my own value and self worth I am very very careful as to who I partner with, if at all. This is just a lesson to be learned and you will repeat it until you finally learn it - then its on to the next one.
Don’t beat yourself up over it - its one step in a long long journey.
Good luck and keep on keepin’ on.