How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask Law Educator, Esq. Your Own Question

Law Educator, Esq.
Law Educator, Esq., Attorney
Category: Business Law
Satisfied Customers: 88656
Experience:  All corporate law, including non-profits and charitable fraternal organizations.
Type Your Business Law Question Here...
Law Educator, Esq. is online now
A new question is answered every 9 seconds

As I mentioned before all partners of the LLC are having serious

Resolved Question:

As I mentioned before all partners of the LLC are having serious differences which I fear could impact the successful running of the business. My partners are giving us high time and keeping us in suspense as to when the business will open. They don't want to sell the business or want to work with us. Since none of us can buy out each other (our LLC is deadlocked), we are stuck right now. My partners are revealing their options.

Right now we have a construction loan with a bank who have arrangement with SBA to package as a SBA 504 loan after the construction is completed.

The value of the property is much higher than the loan as we have put considerable amount of money from our pockets. After the loan closes (construction loan to regular loan), can I approach SBA and explain the situation and explain the situation and ask them to sell the property to the highest bidder?
Will SBA and the bank agree to this?
Submitted: 9 months ago.
Category: Business Law
Expert:  Law Educator, Esq. replied 9 months ago.
Thank you for your new question.

The SBA will not get involved in the LLC disagreement. You would need to go to court I am afraid to get a court order to sell the property or if you default on the loan you can let them foreclose, but that is not the option you would really want, because that too would cost you getting an attorney to go to court. This means that you are not going to avoid the attorney representing the LLC as all of you disagree on what to do here and SBA will not agree to resolve your disagreement for you I am afraid they will make you resolve your dispute and if you want to sell they will tell you to put it up for sale.




I truly aim to please you as a customer, but please keep in mind that I do not know what you already know or don't know, or with what you need help, unless you tell me. Please consider that I am answering the question or question that is posed in your posting based upon my reading of your post and sometimes misunderstandings can occur. If I did not answer the question you thought you were asking, please respond with the specific question you wanted answered.

Kindly remember the ONLY WAY experts receive any credit at all for spending time with customers is if you click on OK, GOOD or EXCELLENT SERVICE even though you have made a deposit or are a subscription customer. YOU MUST COMPLETE THE RATING FOR THE EXPERT TO RECEIVE ANY CREDIT, if not the site keeps your money on deposit.

Also remember, sometimes the law does not support what we want it to support, but that is not the fault of the person answering the question, so please be courteous.

This is NOT the practice of law nor is it legal advice to you, it is merely educational information for you to use to seek out a licensed attorney in your state to get actual legal advice from them. Please use sites such as http://www.martindale.com or http://www.lexmundi.com or http://www.hg.org to find a local attorney to get actual legal advice in all matters.
Customer: replied 9 months ago.

I told my partners that I can't afford to pay monthly expenses if the business doesn't open. If I don't pay the mortgage and let the property foreclose will the bank accept offers from our broker who says she has interested buyers who can buy for a very large amount? Or would the bank use their own brokers to sell the property which may not be optimal for us? My partners don't want to sell the property nor want to work with us. So it's unlikely they will go to court to dissolve the LLC. they don't want to work with us also. So what options do my partners have ?

Expert:  Law Educator, Esq. replied 9 months ago.
Thank you for your response.

If the bank forecloses then it is up to your LLC and the bank I am afraid to decide whether they will accept a short sale. The bank can just take your property in foreclosure and continue to hold the LLC and any personal guarantors liable for any deficiency amounts due.

I am sorry you are in this position, but legally you really have to deal with this through the LLC and this means you have to get an attorney locally to represent the LLC, because your partners actions are causing harm to the LLC and that is a potential breach of fiduciary duty.
Customer: replied 9 months ago.

The market value of the property is much higher than the loan amount. So, there shouldn't be any deficient amounts due to the bank.


 


My question was if the property forecloses, can we suggest potential buyers to the bank so that we can get our amounts that we invested back?


 


Since this is a fight between partners, how can we hire an attorney to represent the LLC? Looks like we may have to hire separate attorneys to represent us.

Expert:  Law Educator, Esq. replied 9 months ago.
Thank you for your response.

If the properly forecloses, the bank sells it at an auction, so anyone can bid on it. Your buyers can contact the bank about buying it back, but that again is up to the bank. You would need to higher the attorney to represent the LLC itself against the partners who are not performing their duties to the LLC.
Customer: replied 9 months ago.

I have already had an initial consultation with a business law attorney.


 


In case we appeal to dissolve the LLC, how long would this take and how much would it cost?

Expert:  Law Educator, Esq. replied 9 months ago.
Thank you for your response.

How much it will cost will depend on how much the other members want to litigate the matter. If they want to fight you on this then it could take over a year and could cost $5000 or more, there is no way to predict that time frame not knowing what the other party will do and if they will fight or will just allow the dissolution.
Law Educator, Esq., Attorney
Category: Business Law
Satisfied Customers: 88656
Experience: All corporate law, including non-profits and charitable fraternal organizations.
Law Educator, Esq. and 3 other Business Law Specialists are ready to help you

JustAnswer in the News:

 
 
 
Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.
 
 
 

What Customers are Saying:

 
 
 
  • Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises! Gary B. Edmond, OK
< Last | Next >
  • Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises! Gary B. Edmond, OK
  • My Expert was fast and seemed to have the answer to my taser question at the tips of her fingers. Communication was excellent. I left feeling confident in her answer. Eric Redwood City, CA
  • I am very pleased with JustAnswer as a place to go for divorce or criminal law knowledge and insight. Michael Wichita, KS
  • PaulMJD helped me with questions I had regarding an urgent legal matter. His answers were excellent. Three H. Houston, TX
  • Anne was extremely helpful. Her information put me in the right direction for action that kept me legal, possible saving me a ton of money in the future. Thank you again, Anne!! Elaine Atlanta, GA
  • It worked great. I had the facts and I presented them to my ex-landlord and she folded and returned my deposit. The 50 bucks I spent with you solved my problem. Tony Apopka, FL
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
 
 
 

Meet The Experts:

 
 
 
  • Law Pro

    Attorney

    Satisfied Customers:

    1426
    20 years experience in business law - sole proprietor, partnership, and corporations
< Last | Next >
  • http://ww2.justanswer.com/uploads/LA/lawpro/2012-6-25_171315_PT206740s.64x64.jpg Law Pro's Avatar

    Law Pro

    Attorney

    Satisfied Customers:

    1426
    20 years experience in business law - sole proprietor, partnership, and corporations
  • http://ww2.justanswer.com/uploads/DC/DCraneEsq/2012-8-14_14436_DCrane.64x64.jpg MShore Law's Avatar

    MShore Law

    Attorney

    Satisfied Customers:

    1233
    Drafted Negotiated and/or Reviewed Thousands of Commercial Agreements
  • http://ww2.justanswer.com/uploads/FL/FLAandNYLawyer/2012-1-27_14349_3Fotolia25855429M.64x64.jpg FiveStarLaw's Avatar

    FiveStarLaw

    Attorney

    Satisfied Customers:

    1162
    25 years of experience helping people like you.
  • http://ww2.justanswer.com/uploads/dkaplun/2009-05-17_173121_headshot_1_2.jpg Dimitry K., Esq.'s Avatar

    Dimitry K., Esq.

    Attorney

    Satisfied Customers:

    1142
    Run my own successful business/contract law practice.
  • http://ww2.justanswer.com/uploads/ohioatty/2009-1-22_185545_me.jpg J.Hazelbaker's Avatar

    J.Hazelbaker

    Attorney

    Satisfied Customers:

    393
    Experienced and trained in the area of business law.
  • http://ww2.justanswer.com/uploads/scottymacesq/2009-6-10_221523_small.jpg RGMacEsq's Avatar

    RGMacEsq

    Attorney

    Satisfied Customers:

    393
    Licensed Texas General Practice Attorney
  • http://ww2.justanswer.com/uploads/BA/barristerinky/2012-6-10_22423_office.64x64.jpg Barrister's Avatar

    Barrister

    Attorney

    Satisfied Customers:

    301
    13 years practicing attorney, MBA
 
 
 

Related Business Law Questions