Posted by JohnBoy on May 23, 2005 at 20:13:56:
Don’t count on getting an answer to this. They don’t respond to specific legal questions. Only generic questions.
If everything was bought and sold under the LLC then I don’t see where they could have a case against you personally. Anyone can sue anyone for anything. It doesn’t mean they can win or that they even have a case.
What you are going to need to do is consult with a local attorney.
BTW, what are they trying to sue for? If you offered to buy it back for what they paid for it then what other damages are they claiming?
Legal problem w/house we sold - Posted by Kristy
Posted by Kristy on May 23, 2005 at 18:18:07:
To Bronchick or someone who knows the laws…
We have a problem that’s been brewing for over a year. Here’s the short of it…
We purchased a fix up foreclosure, did the normal cosmetic repairs, carpet, paint etc, then we sold it. Now 2 1/2 years later the people that bought it are claiming the house is sinking and falling apart and that we knew about it and covered it up! We were not aware of any problems with the house, we only owned it for a month and a half, we never lived in it and now they have been coming after me, our company and my RE license.
We went to mediation, my company (LLC) agreed to buy back the house for what they paid for it…at first they agreed, the paperwork was drawn up, then they backed out. Now they have an attorney coming after us trying to sue us personally, and our company. We have since gotten out of investment properties and moved on to other things.
So what do we do with these people? I wnated to disolve the LLC because we are not using it anymore, but now with a pending lawsuit I don’t know what to do. Can someone please help me out.
Thank you,
Kristy
Re: Legal problem w/house we sold - Posted by eric
Posted by eric on May 24, 2005 at 09:54:12:
I would go see a lawyer with experience in real estate transaction litigation. The disclosure issues and laws are state specific. Without having an experienced attorney review the transaction documents, there is really no answer anyone can give you.
In general, a seller only needs to disclose what they actually know. If you had absolutely no knowledge of the problems they are claiming, then there would be nothing to disclose. The buyer should have got inspections done.
Re: Legal problem w/house we sold - Posted by JohnBoy
Posted by JohnBoy on May 23, 2005 at 20:26:54:
Here’s a thought.
After you very whether they could hold you personally liable or not and assuming their only case is against the LLC only, BK the LLC since you no longer need it or have any assets in it left. Then they get nothing! They’ll wish they would have settled and taken their money when they had the chance.
Also check on the statute of limitations. The laws are different in each state. In my state it’s one year to file a suit against the seller. Also, the disclosure law doesn’t apply the same if you never lived in the property and owned it a short time.
It’s pretty hard to prove you covered up defects, unless you did and it’s obvious. Otherwise it’s hard to prove. Especially 2 1/2 years after the fact!
Did they have the home inspected? Was it sold “as is”?
My aunt went through this after she sold her home. The buyer sued her claiming she concealed defects. The case dragged on for more than 7 years. In the end the case was dismissed and thrown out. The biggest reason her case dragged on for so long was because of her moron attorney. In the end she was left defending herself. She got it thrown out!