Hello again, Michelle, and thank you for the additional information.
I'm sure you realize that you should have obtained a written agreement with her at a stipulated price before collecting money from others, since this does put you in a precarious position legally. If this woman does not follow through, the other people who have paid money to you could potentially pursue legal action against you for their damages for relying on your representations
that the suite would be available to them. The damages could potentially include not only the money they have paid you, but also other costs they have incurred in relying on your representations.
You could of course seek indemnification from your "friend" who appears to be somewhat unstable, but it would become a huge legal mess and potentially expensive.
In an attempt to avoid all of that, I would retain a local attorney for the limited purpose of drafting a demand letter to this individual, indicating in no uncertain terms that you expect her to carry out the obligations in your verbal agreement, and detail those obligations. I would typically indicate in the letter that you intend to pursue legal action against her if she does not fulfill her responsibilities under the contract, and that she may also be liable for travel expenses for those who have reasonably relied on her representations if she does not provide the benefit of your bargain with her.
It should not take more than a couple of hours or so for an attorney to draft such a letter and it could save you a great deal of turmoil down the road. If she wishes to avoid legal action, this is likely to motivate her to comply with the demand.
I hope this helps clarify the situation for you.
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