Becoming Partner in a Property

[Anonymous]

[quote=HLS]Lawyers don’t write deeds.[/quote]

The deeds I’ve seen are written in legalese, but maybe they were written by people trying to sound like lawyers.

But ok, don’t get a lawyer.

[quote]It is CRUCIAL that everyone involved understands vesting options and the consequences.[/quote]

Still don’t need a lawyer?

[quote]**Based on your info, they would probably want TENANCY IN COMMON.[/quote]

Where do the words TENANCY IN COMMON appear? On the deed that the lawyer doesn’t write?

[quote]If partners are 50/50 there should be a clear understanding up front of how any disagreements will be settled;[/quote]

Disagreements? Nah … no need for a lawyer!

[flyer]

svelte, we always consult an attorney wrt most of our business dealings–even if they don’t involve a partnership agreement–so, personally, I highly recommend that option, as long as you trust that person. In our case, we have family members who are lawyers, and they haven’t let us down yet.

Taking that route has saved us from some deals that might not have gone well, and has also encouraged us to invest in some projects we might have missed out on without an expert opinion.

Hope you and your son come to a conclusion that works out well for everyone concerned.

[ltsddd]

[quote=FlyerInHi][quote=ltsdd]If things are that good, B wouldn’t be leaving. And if things are that good and B is leaving, A would want to take over the whole thing. In situations like these, I always presume that these people (A & B) are smarter and more knowledgeable than me. So, if they want to sell then it’s a good sign that I shouldn’t be buying.[/quote]

Wouldn’t that apply to any sale? Not so simple. There are always sellers and buyers.[/quote]

Absolutely. Real estate transactions are pretty simple. Information is readily available and an informed decision can be made.

However, when things involve third-party/partnership in the transaction it becomes really tricky. Again, if business is good then why is B bailing? Why A is not taking over the whole thing? How about passing that on to their relatives?

[SK in CV]

“Partners” implies a partnership. Whether in writing or not, that’s a legal contract that is being created. If a written agreement exists, it needs to be reviewed by a lawyer, and be revised to include the new partner, including any new protection that the new partner and the remaining partner agree on.

If the property is currently owned by an existing partnership, than possibly nothing needs to be done with the deed. If the intent is for the property to be owned by a new partnership, then a new deed can be drawn in the name of the new partnership.

If I was the remaining partner, there is no chance I would agree to a lien in favor of the new partner, unless some of that cash is going to the remaining partner or the partnership. Ownership of the property essentially creates a lien. The owners own everything that is not protected by other liens. It’s unclear to me why a new partner would or should have any preferential position over the remaining partner.

Partnerships are only as reliable as the individual partners are. My father was in one for more than 30 years with no written agreement. I’ve been in one with a very simple written agreement since 1992 without any problems.

[svelte]

Thanks all.

I wrote the above early in the morning, I obviously used incorrect wording. Much simpler than a partnership, helping a sibling through a rough patch…

I took your advice and talked to my lawyer. They will help should they decide to proceed with this – should be a piece of cake.

Thanks again.

[Author]

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