Legal Question in Business Law in Louisiana
Incorporated family business was built on property owned equally by 3 brothers. Two of the brothers have put a"Mortgage"on the property,without consent of the 3rd brother who is not involved in the business, in order to pay operating expenses of the business. Is this legal for the 2 brothers to do this?
1 Answer from Attorneys
As a franchise attorney the key question not raised in yours is this. Do the brothers have a partnership agreement regarding the property? If not, and in the absence of a contrary agreement, it's entirely possible for the two brothers to take out a mortgage. But if all three are on the title to the property, it's hard to see how the lender would do so without all 3 signing the documents. Consult with a good business or franchise attorney in your area for specific advice.
Mr. Franchise - Kevin B. Murphy, B.S., M.B.A., J.D.
Franchise Attorney
Franchise Foundations APC
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