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LLC partners stealing money, what recourse do I have?
Anonymous2 views2 answers
4 MBR LLC for rental property. Mbr agreed we need to dissolve LLC and sell property. Now 2 Mbrs are having tenant pay them
Direct keeping other 2 mbrs portion. Won’t respond to sell home. They are holding us hostage as mbrs. What can we do?
Assuming that the property is titled in the name of the LLC, you have both a corporate legal issue and a real estate issue. If there are fundamental disagreements among the members on the dissolution question, those in favor of dissolution need to consult with a business litigator to explore either private resolutions (such as a buyout of the dissatisfied members, or compromises and member resolutions related to the company's use and disposition of the property), or a lawsuit to compel judicial dissolution of the LLC. If dissolution is to take place--either by unanimous consent of members or by judicial decree--the members would need to sell the real estate in order to liquidate the company's assets during the "winding up" phase that follows a company's dissolution, and then pay residual proceeds and distribute residual assets to the members according to their ownership percentages, following satisfaction of all outstanding company creditors, debts, claims and other obligations. A local lawyer who regularly advises real estate holding LLCs can offer you tailored advice to handle corporate and real estate-related issues. Best wishes in this situation.
You will need to get a local real estate attorney and pursue a forced partition action most likely. It would be best to work something out on your own without having to resort to a partition but it does not appear that option would work very easily based upon what you have posted.