Legal Question in Real Estate Law in Florida

Subject to existing mortgage & Partition Suit

In 2006 3 friends (1, 2, 3) formed Florida LLC. Agreed they would personally buy investment property & treat as if owned by LLC in books & taxes. LLC had no credit history-could not get loans. In late 2006, 1 obtained conv. financing to buy duplex. Added 2 & 3 to mortgage docs & deed at closing w/ bank approval. Downpayment funded via secured credit line from Arizona LLC also owned by 1, 2 & 3. 3 months later, 1 wants out of property & LLC. 2 & 3 upset, but agree verbally to buy 1 out ''subject to'' existing mortgage, unless they could find the same exact financing terms or better. For 2 years all OK. 2 & 3 collect rent, paid mortgage, taxes & bills, & did repairs & substantial renovations on property. (Never any late payments) In late 2008 friendship decays. 1 wants name off mortgage & tells 2 & 3 they have to refinance now & says he never agreed to a ''subject to'' deal. 2 & 3 agree to get much less attractive financing & pay off current mortgage if 1 pays $40K. 1 doesn't agree. 2 & 3 then tell 1 that if one part of deal is not valid, then whole deal is not valid & 1 can manage & take care of property himself. 1 hired lawyer & is threatening breach of contract in AZ & partition action in FL. Does 1 have a case in AZ or FL?


Asked on 3/09/09, 6:09 pm

1 Answer from Attorneys
Steven Platzek Graner & Heimovics, P.A.

Re: Subject to existing mortgage & Partition Suit

For a partition action, the proper jurisdiction would be the one where the property is located. I strongly suggest you consult with an attorney to become more fully apprised of your rights and obligations in connection with these matters.

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Answered on 3/10/09, 2:45 pm


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