Legal Question in Real Estate Law in New Jersey
Real Estate investment gone bad
I went into a partnership with an acquaintance that said he was a contractor and purchased a home to renovate. He would cover labor and materials, while I covered the cost of the house. We agreed to a 50/50 split on profit. Well, he brought in another partner without me knowing initially, who was funding his portion of the agreement. We never had any written contracts for anything between us. She has named me and my expartner in the lawsuit and has filed a lien or lis pendins against my property. My ex-partner knocked down the house and that is what made his partner pull off from the investment. I severed my partnership shortly after also b/c I found out he was not a licensed contractor. Now she is going after me also to get her money back even though I am the one stuck with the property and spending well over 200K to finish the property. She told me that he made personal guarentees that he would pay her back in a result of a loss. I was wondering if MISCARRTAGE would protect me in the lawsuit. I was also told by another attorney that she could not file a lien against my home since i did not have any written contracts with her, and that if she did, I could countersuit for property defamation.
2 Answers from Attorneys
Re: Real Estate investment gone bad
She may not need a written contract to go after you... oral contracts are enforceable, and remember that all she needs to do to commence litigation is assert that a contract existed somehow between all of you and the "contractor". Then you are on the hook to defend it.
Call or e-mail back to discuss the details.
Mike Berman
Re: Real Estate investment gone bad
First thing you need to do is hire a lawyer and answer the lawsuit so there is not a default against you. As to your other questions, a they need to be discussed with the attorney and answered when all the facts are known. You will probably have to pay a retainer to the attorney, but if you do nothing the cost will be greater and you could lose the property.
The fact that nothing is in writing will be a problem when it comes to proofs. You should also cross claim against the contractor for your loses and any potential loses from the lawsuit. If we can be of help, please call for an appointmen. We specialize in real estate matters.
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