What is a good way to proceed with a buy-out after co-owner is no longer wanting to sell shared interest?: I am in a co-ownership with a sibling under a tenants in common title and we each have 50% shared interest on this property. Sibling and I have been unhappy with the co-ownership for years and he has been expressing interest to sell his share. Sibling brought in a realtor to inform me that he is willing to sell his interest to me. Sibling owns another property that he spends half his time at. This property is the only property I own. I proceeded to secure a cash-out refinance loan and am trying to schedule the appraiser to assess the value of the home. After I got the loan approval, sibling is trying to back-out from the deal and is threatening to obstruct the appraiser's access to the entirety of the home. There is no written agreement between the both of us. I have emails, text messages and voice recordings from the realtor and sibling's intent to sell shared interest, as well as conversations of sibling explaining he no longer wants to sell. I want to continue with the buy-out procedure due to sibling's inconsistency and malice behaviors. I have tried to contact for mediation but there has been no cooperation from sibling.
David’s answer:
Given the history of your sibling’s expressed intent to sell and your reliance on that intent to secure financing, his sudden change of position and obstruction of the appraisal process may raise legal concerns, including potential bad faith conduct.
Since there is no written agreement obligating your sibling to sell, enforcement of the sale may be challenging under the Statute of Frauds, which generally requires a written, signed contract for real estate transactions. However, exceptions may apply if there is sufficient evidence of partial performance or possibly other equitable factors demonstrating reliance on the agreement, such as your securing of financing based on your sibling’s repeated representations and intent to sell.
Thus, any evidence you have, including but not limited to emails, text messages, voice recordings, and statements from the realtor, may help establish that you took action in reliance on the agreement, which could potentially satisfy an exception to the Statute of Frauds. Additionally, such evidence may demonstrate that your sibling engaged in bad faith negotiations, inducing your reliance on his intent to sell to your detriment. This could support additional legal claims, such as misrepresentation or promissory estoppel, depending on the circumstances.
If your sibling refuses to cooperate, the following are probably good legal options:
1. Partition Action – Under Hawaii law, if co-owners cannot agree on the use or disposition of a property, a co-owner may file a partition action in court. The court may either:
o Order the physical division of the property (partition in kind), which is often impractical for residential properties, or
o Order the sale of the property and divide the proceeds accordingly (partition by sale).
2. Injunction or Specific Performance – If there is sufficient evidence that your sibling’s conduct constituted an enforceable agreement, you may explore legal remedies such as seeking an injunction to prevent interference with the appraisal process or pursuing a claim for specific performance to compel the sale, though this would depend on the strength of your case.
Given the potential for obstruction and ongoing disputes, pursuing a partition action may be the most viable course of action to resolve the co-ownership issues definitively.
How do I get my deposit back from a seller that was selling a salon?: I was trying to buy a Nail salon from this seller. I gave her $5000.00 (USD) check for deposit, with the intention to buy the salon. But there were a few reg flags with the salon so i decided not to purchase it. When i ask for the deposit back and cancel the deal. She said the deposit was non refundable and that she will not give it back.... if i knew the deposit was non refundable i would have never gave the deposit. Also I never sign any document or a agreement form. how do i go about this situation and get my money back. I told her i will take her to court and all she said was "see you at court"
David’s answer: It is likely that you need to take this case to small claims court. Bring your evidence, such as the cancelled check form payment of the $5k deposit and/ or communications between the salon owner and you. Tell your story to the Judge, and hope for the best. For information on small claims court, try internet search or finding sources of assistance from pro se litigants. The District Court courthouse also has an assistance desk open to the general public.
Do I have liability protection as an LLC? : I am a Mortgage Loan Originator and I get paid as a 1099 independent contractor. I created an LLC thinking that it would provide me with liability protection but some say it doesn’t because I’m paid as an individual and not to my LLC. In addition, I sign documents under my name not LLC. Are they correct?
David’s answer: Please understand that we cannot make any determination based on what you wrote, as to make any kind of real legal analysis we would need to obtain and review all documents and potential evidence – and perhaps conduct some legal research based on the contents of these materials. In general, one purpose of a business entity (including LLCs) is to protect the individual owners from liability for the acts of the company. However, merely having an LLC does automatically protect an owner from matters not done on the company’s behalf. In addition, even in matters where the LLC would normally provide protection, such protection can be overcome with an alter ego claim. An alter ego claim is a legal assertion that a corporation or business entity is merely a facade for its owners or shareholders, allowing the court to disregard the entity's separate legal status and hold the individuals personally liable for the entity's actions or debts (sometimes called piercing the corporate veil). Therefore, taking a guess, as you have apparently been paid directly as a 1099 independent contractor and sign documents under your own name and not the LLC, the party asserting that the LLC does not offer protection form liability may be the prevailing position. However, please understand that this is not legal analysis, and is only background information; you should not take any action in reliance on this posting. If this involves a matter of significant importance, you would likely be well served to have an attorney review the situation and offer you a legal opinion.