Legal Question in Real Estate Law in Ohio

Our partner and I purchased a apartment building in 2013. It was purchased in my partner's name because it was a quick decision to buy and we didn't have a business formed. Shortly after buying the property we started renovation of the property. We opened the LLC and did a operating agreement and the partner was to quit claim deed the property to the business. We put $75,000 into to business and continued renovation. This was a "trusted friend" so we didn't push for the quit claim deed as fast we should have. Fast forward, we've put $90,500 and he's put $130,000 and he was refusing to put the property in the business because the shares weren't 50/50 anymore. So, we drew up a new operating and share agreement with our attorney and it listed our investments and percentages/shares and the attorney said he'd have the property put in this business within 2 weeks. We waited, nothing happened. The operating agreement listed the buildings we purchased in the purpose as " ownership, management and leasing of "sai buildings" So, fast forward again, we call him over and over and he says my lawyer is sick or my lawyer is busy... etc. So a colleague of mine calls me and says, hey I saw your buildings on the MLS listed for sale. So, again, we call the partner and tell him that isn't okay to list the property for sale without our permission, as the operating agreement states listing or selling the property in the major decision section needs all members to agree. He says I'll ask my lawyer about transferring it. So we call him again and he says my lawyer says theres no possible way to transfer the property to the business without paying property taxes (Again, not true, a quit claim deed will work) So, we push him a little more and he finally just says it's in my name and I'll do whatever I want. So, what I want to know if there is anything I can do legally at this point to protect my asset and to regain control of what happens with the property.


Asked on 7/24/16, 10:35 am

1 Answer from Attorneys

J. Norman Stark J. Norman Stark , Attorney, Architect

Dear Troubled Partner: You need legal counsel ASAP. You need to assert your rights, legally, with a court action to stop offer and/or sale of your investment vin the building.

Clearly, the Attorney being utilised by your "Partner" is not serving or preserving your best interests.

Consult and retain experienced legal counsel and proceed with an application for a restrsining order to stop any offer or sale, legally demand an accounting, and assert your rights to your fair share of title and ownership. Good luck.

Sincerely,

J. NORMAN STARK, ATTORNEY

ARCHITECT EMERITUS (Ohio) A.I.A., N.C.A.R.B.

1109 Carnegie Avenue Cleveland, Ohio 44115

(216) 531-5310 x7100 Email: [email protected]

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Answered on 7/24/16, 12:17 pm


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