Legal Question in Real Estate Law in California

Real estate buyout agreement between former domestic partners - Can I ask for a

I was in an unmarried domestic partnership for 18 years. During that time period we bought two properties as joint tenants and started a business which began as a partnership. Before my partner left, he asked to buy me out of the business so that he could convert it to an S corporation. He told me our relationship was solid and that this was simply a way to protect the company from lawsuit. I sold my share to him for $1. I didn't realize at the time that he was planning on walking out. After he left he convinced me to sign an agreement promising that I would pay him 27% of market value for a house we both own and I occupy at some future date (not earlier than 3 years). He claimed that this was a long term investment for him and that he was unlikely to ask for the money. He is now asking for the money. Can I say that I changed my mind now? I can pay him the cash he put in but I can't afford market value. The agreement I signed was notorized. Can he sue me if I don't pay him?


Asked on 11/07/02, 9:01 pm

1 Answer from Attorneys
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: Real estate buyout agreement between former domestic partners - Can I ask fo

Yes, you could be sued on the document you signed, but based on the very limited facts you gave, you may have several defenses including fraud.

Rather than wait for him to sue you I suggest you take pro-active steps to learn more about the potential strengths of your position. Between the two properties and the business (not to mention 18 years of your life) you have a lot at stake here, and I think you're being systematically fleeced.

You can probably get a better deal overall, and maybe can un-do some of the harm that's been done to you on the business. This would be based upon the concept that business partners are in a fiduciary relationship with one another and owe each other a duty of utmost fairness and good faith in all partnership dealings.

I have done several disentanglements for unmarried couples owning property as cotenants and your situation would be within my area of professional concentration. It appears you are in the Oakland area and I could arrange to give you a free consultation down there (I'm in Santa Rosa) within a week or so if you're interested.

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Answered on 11/07/02, 9:42 pm


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