Legal Question in Real Estate Law in California

Property Ownership

Hello, 2005 my husband and I went into business with our 3 friends. They provided the investment for 2 houses, and we did all the work. 2007 Summer, we all decided this was not working. My husband & I decided to buy them out by refinancing the loans in our name vs our friends names. Come to find out that when we tried to refinance, our name was not on the Title/Deed as we ALL thought it was. Once we told our friends this, they decided they didn't want us to buy them out anymore and haven't spoken to us since. I have a TON of paperwork such as a Business bank account, home insurance, LLC. etc...with all our names on it. Is there anything legally we can do about this? The only thing our name wasn't on was the Deed. As you can imagine this has ruined our 15 year family friendship. Any advice? We all live in California, but the 2 houses in question are in GA.


Asked on 6/18/08, 12:50 pm

3 Answers from Attorneys

Mitchell Roth MW Roth, Professional Law Corporation

Re: Property Ownership

Yes. You can sue for compensation and damages based upon breach of contract, unjust enrichment, etc. I assume the contract, though, was made in GA and the work performed there, so you may need to file suit in GA.

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Answered on 6/18/08, 1:18 pm
Cathy Cowin Law Offices of Cathy Cowin

Re: Property Ownership

There are a lot of things you can do about this situation! (1) Have an attorney look at the LLC agreement. This will likely provide significant clarification as to the best course of action. (2) Consider dissolving the LLC through the court with a full accounting. The title ownership of the property may not be in your name or the LLC's name, but the beneficial ownership should be deemed to be in the LLC's name. We run into this type of situation all the time with farming partnerships! (3) Have an attorney analyze where any court action would have to be filed. Typically, the courts require you to file where the defendant resides or where the real property is located. It would be significantly more convenient if you can file in California, but the Georgia property is a complication if you're trying to get a California court to make orders regarding Georgia dirt. (4) Consider how you can mediate this dispute. There are excellent mediation and arbitration alternatives. This is particularly a good option to explore since you used to be friends and because of lower expense.

Hopefully this gives you some general thoughts on strategy and questions that need to be answered. Unfortunately, no one can give you accurate counsel without looking at the documents in this situation. I would urge you to consult an attorney, whether myself or someone else, to help you answer some of the questions raised in my response.

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Answered on 6/18/08, 1:19 pm
Daniel Harrison Berger Harrison, APC

Re: Property Ownership

You need to speak with an attorney in GA, because that is where the properties are located. You will likely need to file a quiet title action. A quiet title action is an action to determine ownership of property. However, GA may have laws that are different than we have here in CA. So, that's why you are strongly advised to speak to an attorney in GA. You should act quickly, as the others can sell the properties without your knowledge or involvement.

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Answered on 6/18/08, 1:30 pm


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