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Attyadvisor
Attyadvisor, Attorney
Category: Real Estate Law
Satisfied Customers: 5878
Experience:  28 years of experience in General Practice, Real Estate Law and Estate Law.
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My husband and his friend were asked to be partners of Mr X.

Customer Question

My husband and his friend were asked to be partners of Mr X. Mr X operates construction company.He had land where he planed to build 10 houses. Our share to get in was $25000 each. We paid our share and start building first house. A month later he asked us to buy out his share. Mr. X needed money to keep his house. We were told the land of clear( all paid off) and also land was developed and done. So we bought his share and Mr. X changed land deed to our name. But we found out that Mr.X has still loan for that land yet. Also when we started second house we found the land were not fully developed. We had to install sewer line. and some of the lots were not ready for water line. I think Mr.X loan is still about $50,000. I can not see his loan because that is his. And we are paying the quarterly payment. He promised us to frame house for free. He did second house framing for free but his crew did not finish all because they had to do next job. What can I do ?
Submitted: 5 months ago.
Category: Real Estate Law
Expert:  Christopher B, Esq. replied 5 months ago.

My name is***** and I will be helping you with your question today. This is for informational purposes only and does not establish an attorney client relationship.

If Mr. X did not fulfill the terms of a contract with you or there was some type of fraud conveyed in the payout in your company, he is personally liable for your loss. You can sue him in civil court for this personally although his ability to pay would be an issue here as if you sued and he declared bankruptcy, you would get nothing. It might be best to continue to work it out with him and once you are sure there is nothing else he can do for you, then you can sue him civilly in court for fraud or breach of contract.

Please let me know if you have any further questions and please positively rate my answer if satisfied. There should be smiley faces or numbers from 1=5 to choose from. This extra step will cost you nothing extra and will be greatly appreciated

Expert:  Christopher B, Esq. replied 5 months ago.

Just checking back in, do you have any further questions?

Expert:  Christopher B, Esq. replied 5 months ago.

Just checking back in, do you have any further questions?

Expert:  Attyadvisor replied 4 months ago.

I am a different Attorney and was asked to see if you had additional questions or needed additional service. Please let me know.

Customer: replied 4 months ago.
We are building second house now. The question I have is about the land. We own the deed of that land. But the loan is on Mr.X yet. The payment is 4 times a year. I do not know anything about that loan.( interest, how much he still owes. how many year the loan is etc). And we have to pay $6000 every time to release the land for one house. We paid last loan. Do we have to pay the loan? If we or Mr. X do not pay the loan, I guess Bank is going to take over that land? If that happened would our credit get hurt? What is going to happen? Thank you.
Expert:  Attyadvisor replied 4 months ago.

We are building second house now. The question I have is about the land. We own the deed of that land. But the loan is on Mr.X yet. The payment is 4 times a year. I do not know anything about that loan.( interest, how much he still owes. how many year the loan is etc). You should be able to get a copy of the loan terms as they would be recorded against the land in the county recorder's office. You should be able to ascertain exactly what is owed.

And we have to pay $6000 every time to release the land for one house. We paid last loan. Do we have to pay the loan? If you don't the lender can foreclose.

If we or Mr. X do not pay the loan, I guess Bank is going to take over that land? If that happened would our credit get hurt? You are not borrowers on the loan, Mr. X is, this should have zero impact on your credit.

What is going to happen? Thank you.

Thank you for the clarification. Unfortunately you trusted that the land had clear title. I am sure you don't need me to tell you that a title search for liens should have been performed so you would have known he was lying. So here we are today where you have title with no mortgage obligation but no ability to sell without releasing the liens.

As the other attorney stated you could sue him under a breach of contract/fraud theory.

The other option is a quiet title, however, that could take some time and is not guaranteed.

You are correct that if the loan is not paid the bank can foreclose. This is based on his fraudulent conveyance wherein he did not admit to liens recorded against the Real Estate.

My first step, if you have not done so already is to perform a title search and see how much is owed against the Real Property. If you feel you can make enough money and pay off the loans I would not want you to throw away the work you started. You would obtain a release for each sale. As far as Mr. X is concerned he cannot lie and convey property and then hide behind bankruptcy after making a huge mess based on fraud. No knowing the value of the land or the potential value and how much is owed it is hard to know if moving forward is best.

You have an idea of what you can make if you continue the project, subtract what he owes from that amount to see if this financially feasible. Either way I would sue this man for fraud. This is the worst kind of betrayal.

If the only outcome is losing money you will want to get rid of the property as you will owe real estate as those payments fall to the title owner.

Can you tell me where in Oklahoma the property is locate? I want to provide you with a link for a local Land Use Attorney that provides FREE consultations that can assist with checking title, can perhaps work out a lower payoff to the lender and discuss your other options such as a fraud suit or a quiet title action.

I am sorry that you are in this situation but there are options.

Expert:  Attyadvisor replied 4 months ago.

Please do not hesitate to ask me any additional questions that you may have with regard to this matter. It would be my pleasure to continue to assist you.

If you would be kind enough to rate my service positively so I will receive credit for my work I would appreciate it.

YOU DO NOT HAVE TO PROVIDE A NEGATIVE RATING TO RECEIVE A REFUND.

Customer: replied 4 months ago.
The property is located in Adair, Oklahoma 74330. We would like to speak to Attorney about a possible fraud suit. Thank you.
Expert:  Attyadvisor replied 4 months ago.
I would also want someone to look at what you are dealing with on title as far as liens such as the mortgage liens in case there is any loophole that could possibly challenge the liens. I will provide a land use attorney and contract/fraud attorneys. It is worth knowing exactly what you are dealing with. One moment please.
Expert:  Attyadvisor replied 4 months ago.
This is a link for land use attorneys http://lawyers.findlaw.com/lawyer/firm/land-use-zoning/adair/oklahoma
Expert:  Attyadvisor replied 4 months ago.
http://www.tolliverlawoffice.com/Practice-Areas/Business-Commercial-Litigation.shtml Let me also provide the legal for the State Bar Association's Referal Service.
Expert:  Attyadvisor replied 4 months ago.

http://www.okbar.org/public/LegalServices/LawyerReferralServicesInOklahoma.aspx

Please do not hesitate to ask me any additional questions that you may have with regard to this matter. It would be my pleasure to continue to assist you.

If you would be kind enough to rate my service positively so I will receive credit for my wok I would appreciate. You do not need to provide a negative to obtain a refund. Thank you for your consideration.

Customer: replied 4 months ago.
1, Part of your answer
" If the only outcome is losing money you will want to get rid of the property as you will owe real estate as those payments fall to the title owner."
What do you mean " real estate" ?2, When does fraud become criminal?3, I checked the link for land use attorneys you gave me. Some are over 100 miles away. Does it make any different if it is a large firm or just a small local attorney?4, How do fees work? Are they pro bono or fixed fee?
Expert:  Attyadvisor replied 4 months ago.
Those are the attorneys that provide free consultations in the vicinity. The area where the property is located has very few attorneys. Yes there are Pro Bono and legal aid attorneys. These attorneys are based on financial need. I can provide a link. The link I provided is for a free consultation. The attorney would need to go over their fees with you. Real Estate is taxed and has its own tax bill. If taxes are not paid the taxes can be sold. I would look for an experienced attorney regardless of the size of the firm. I know sole practitioners that major firms do not want to take on. I will provide a Pro Bono link in a few moments as I am now on my IPhone. I gave you the link for the State Bar Association Lawyer Referal Service for you to use as well due to the lack of attorneys advertising free consultations.
Expert:  Attyadvisor replied 4 months ago.
https://www.probono.net/ok/
Expert:  Attyadvisor replied 4 months ago.
http://www.americanbar.org/portals/public_resources/aba_home_front/directory_programs/oklahoma.html
Expert:  Attyadvisor replied 4 months ago.
Unfortunately you did not check the title for liens and trusted someone that betrayed you. I am very sorry this happened.
Expert:  Attyadvisor replied 4 months ago.

Please do not hesitate to ask me any additional questions that you may have with regard to this matter. It would be my pleasure to continue to assist you.

If you would be kind enough to rate my service positively so I will receive credit for my work I would appreciate. You do not need to provide a negative to obtain a refund. Thank you for your consideration.

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