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Law Educator, Esq.
Law Educator, Esq., Lawyer
Category: Real Estate Law
Satisfied Customers: 111550
Experience:  Licensed attorney practicing landlord-tenant, land use and other real estate law and litigation.
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I was in a partnership with an LLC with husband only and s

Customer Question

I was in a partnership with an LLC with husband only and his partner. we flipped a house making me the realtor and designer for the house and divide the proceeds equally to all partners. I was there everyday for 4 months designing, picking appliances, materials,etc. the husband had a stroke and out of order to sign, the partner signed listing agreement, wife takes over. I paid out of pocket money about $500.00 and $3500 part of mortgage payment. She booted me out of my listing agreement stating that it was a fraudulent listing but meanwhile she came to the open house for 3 months in a row. She reported me to the police department, DRE, and claimed that I was not part of the partnership. (I have evidence of partnership, multiple text and emails and cashed checks). Now that the house closed, I only asked for my initial investments without the profits and she refused to pay me. She also changed ownership from their LLC, booted the other partner to joint ownership and then back to LLC. I am so bothered that I have wasted my time and money and I can't even get my money back and she told me that she would after the sale.
Submitted: 1 year ago.
Category: Real Estate Law
Expert:  Law Educator, Esq. replied 1 year ago.

Thank you for your question. I look forward to working with you to provide you the information you are seeking for educational purposes only.

You are not without recourse here, but it is going to require you to get legal representation to pursue the matter. You would first be able to file a notice of lis pendens on the deed to the property, since you have a valid contractual claim to the property and you have the email documentation and proof of everything you paid and all time expended on the house to prove it. The notice of lis pendens is something that is notice to any potential buyer that there is a possible legal claim on the property (sort of like a lien).

Second, once the lis pendens is filed, you would have to file suit against her for breach of contract and seek your payment plus damages, including punitive damage for her willful and malicious conduct in this matter breaching the contract.

This is your legal recourse and you need to move now before the house is sold so you can secure any court judgment against the sale of the house.

Customer: replied 1 year ago.
Thank you for your quick response. Unfortunately, the house closed last month. We were advised that we had a case but we just didn't have the funds to pay the attorney and she knew we didn't. If I had the means, I would have taken them to court. At this time, I just want my initial investment and move on. I really want to put this behind me and have learn my lesson to follow my instincts. :( Can I take her to small claims?
Expert:  Law Educator, Esq. replied 1 year ago.

Thank you for your additional information.

Unfortunately, your only remaining recourse now is suing in court for breach of contract. You can go to small claims if the amount you are owed is below the small claims court monetary limits, but as you did not let me know the state you are in I cannot tell you what that limit would be.

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