If a partnership ownsrentalproperty and one of the partners is pocketing the rents, what legal recourse does the partnership have?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
If a partnership ownsrentalproperty and one of the partners is pocketing the rents, what legal recourse does the partnership have?
We own 2 homes in GA with a partner. When we bought the home, the partner in question was supposed to collect rents and then pay the mortgages. After about a year, the partner was strated to pocketing the rents. We ended up paying the mortgages and late fees out of our own pockets. My husband ended up taking over paying the mortgages but the partner still collects rents and is supposed to remit to us. However they have now again started pocketing the money. What legal recourse do we have? Should we speak to a real estate attorney? In Litchfield County, CT.
Asked on October 3, 2010 under Real Estate Law, Connecticut
Answers:
M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney
Answered 13 years ago | Contributor
Is this partnership agreement written down somewhere? It should be for future reference but may not be fatal to your case here. You have to go to court and sue the other partner for breach of the agreement, file embezzlement charges, and do whatever else is necessary to have hm stop his behaviour and to recoup the monies that you lost. It may be a good idea to send a notice to tenants to refrain from paying him and to set up an account in the courthouse for them to pay their rent in to court until the matter is resolved (ask your attorney if the court allows withdrawing funds to pay the mortgages, etc.). Do you have business accounts, etc.? I would definitely seek legal help in all of this. Good luck.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.