I went into business with a "friend" on a tiny house. The agreement was that we would split construction costs 50/50. Then the home would go into a lease program and we would split the profit from that 50/50. Then pending an eventual sale we would split the sale price 50/50. This person has stopped working on the house, i have text messages saying that he cant put time into it to finish it. I then said i was selling the "house" on Craigslist. He replied "sweet" then he asked "Asking price?". I told home $35,000. he replied "Bravo" I have a Colorado Title for the trailer that has his name and my name on it. I need to sell but he is just dragging this on, I need to figure out what to tell him so he will sell it. its been sitting on my property for 11 Months.
Your post is a bit confusing in that I cannot tell if you have a buyer, are looking for a buyer, etc. If you are joint title holders, the co-owner is going to have to come to the table to sign away rights to the property in my humble opinion. What exactly is the challenge in getting your a partner to participate in this process? Is he gone? If not, find him and talk this through as I presume he wants the dough just as much as you do!!
In no way am I offering you legal advice, and in no way has my comment created an attorney-client relationship. You are not to rely upon my note above in any way, but insted need to sit down with counsel and share all relevant facts before receiving fully-informed legal advice. If you want to be completely sure of your rights, you must sit down with an experienced attorney to be fully aware of your rights. Finally, please forgive any typographical errors in my note!
Your rights should be stated in your written agreement. Your business attorney would have had terms related to who would sell the property, the timing for providing each partner their portion of the sale price, consequences for not complying with the agreement (like when one partner stopped doing work), and on and on. I will assume you don't have that written agreement. Did you have an oral (what most people incorrectly term as verbal) agreement on the foregoing, at least?
If you did not establish a business entity and did not make this clear in your agreement, you two formed a partnership. So you are equal owners and you both have certain fiduciary duties. What your friend did could be construed as a breach of their contractual duty and possibly a fiduciary duty.
That is just the legal background. What you need to do is resolve this and avoid a lawsuit. So you need to now get this agreement in writing and you should have authority to sell the property and collect the proceeds. This written agreement should be coupled with a written power of attorney authorizing this power. It is up to you if you want to try to claim that you should get more because he breached his duty but you risk scuttling a deal if you do that.
I strongly recommend that you retain a business attorney to get this done and try to avoid problems. Start contact business attorneys ASAP and see which you want to work with. Most of us offer free consultations so that is the first step in making your determination.
This answer is for informational purposes only and is not legal advice regarding your question and does not establish an attorney-client relationship.
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