Legal Question in Business Law in Arizona

Re: QuitClaim or add name to LLC?

We see so many people on this web site who invest in real estate with oral agreements, often not thinking to negotiate the various contingencies which should be addressed in a business deal and usually without proper written agreements. They feel they are not at risk going into the deal because they are dealing with a "friend", family member, boyfriend, etc. If you do a little reading here you will see their sad stories. All had good intentions in the beginning, but were naive and listened to "garage lawyers" or did the deal themselves. I have two such cases now in my office, both involving live-in unmarried partners.

If there is an LLC owing the property, there needs to be a detailed member agreement detainling the respective rights, responsibilities and duties of the parties. Who decides when the property is to be sold? For how much? Will there be a realtor? What if the members do not agree on something? What is the tiebreaker arrangement? What if a member dies? Declares bankruptcy? Gets a judgment or lien against him or her? What does each person own? Who decides tax issues? Who is manager? How will losses be divided? Profits? Who pays expenses? Who authorizes expenses? What capital contribution is made, as opposed to loans?

You are telling us that you invested in a property with your name not on the property, no written agreement, and probably no understanding of the above issues. Most people would be uncomfortable with that amount of risk.

See an attorney, and repair this situation as best you can now that you are already in.

Best regards,

James D. Jenkins

Re: QuitClaim or add name to LLC?

no ifs ands or buts about it. get yourself involved with it on paper. you might want to consult with someone..spend a few hundred dollards talking to someone who can advise you on what kind of documents. I strongly suggest Carlos Arboleda