I might need some serious legal advice on property partnership

[Metal_King]

To make a long story short, a property deal/house plan I made with a partner has fallen through. The resulting choices on what to do next are:
1) Sit on the property
2) Sell It
3) I buy him out
4) He buys me out
I have been told by the other party that #2 and #3 are out of the question. We went in 50/50 and does anyone out there know what happens legally if we can't agree on what to do next?
Thanks
[ September 22, 2003, 09:12 PM: Message edited by: Metal_King ]

[ssmike]

Partition sale!!!
(Court ordered...if it gets that far)

[RandyH]

Buy/Sell agreements are hard to get into place at this point in your partnership but if you can get him to play this out then maybe it will help. In several buy/sells that I am in, there is a impasse provision that works likes this. It does require that both parties are willing to sell or buy so he may not agree based on your comment.
1. If the price can not be agreed upon, flip a coin. The winner sets the price and the loser has the right to either buy the winners shares or sell his (The losers) shares to the winner at that set price.
2. If the loser either doent sell or buy in 30 days the winner can then buy out the losers shares at half the price set by the winner earlier. You must both agree before the coin toss.
If you play this out in all the different ways possible then you will soon realize that the winner had best set a reasonable fair market price or the loser can dump his shares in this deal. It forces action by both parties. There is a lot more to these than just this but this is an age old method of arriving at a fair number. Anyway you do it, keep it out of the hands of the lawyers, you will both lose if it goes that far.
Good Luck,
RandyH

[Washed Ashore]

A hard lesson learned,partnerships :mad: rarely work

[locogringo]

Washed Ashore:
A hard lesson learned,partnerships :mad: rarely work I diagree, just treat it as a business and you will be more than fine 95% of the time.

[BSheffron]

I diagree, just treat it as a business and you will be more than fine 95% of the time.
This is correct. Partnerships work when you approach it as a business relationship and have "EVERYTHING" in writting in the beginning. All what-if senarios should be covered in your partnership agreement (never happens though). There are several alternatives to selecting a price (if it comes to that). One is to each select an appraiser and see what the come up with. If that does not work then either you two pick a 3rd appraiser or have the 2 appraisers pick the 3rd. I could go on and on but I am propably sleeping boooorrring you all.
Hope it help.