Legal Question in Credit and Debt Law in New York

Money used in real estate improvement

I agreed to help a friend who is in the process of foreclosing on a property to oversee construction to improve the property. I was given an informal verbal budget. There was more work to be done than originally expected due to condition of property. Construction was stopped when I realized we would exceed expected amount. I was not compensated for time and effort involved in 6 month project. It was acknowledged that money used for project was not a loan both verbally and on a reciept that I drafted when I returned funds after stopping construction. Now he is saying that I could be liable for money spent on project?? I have no initial agreement..I can prove all money was spent on project and I did not benefit in any way from this. I have all reciepts, contractor estimates, phases completed, phases left to complete. The only thing I have saying I was not indebted for this money was the statement/reciept summerizing what happened and acknowledging the completion and return of money. His attorney is saying that i can be held responsible for damages. What are my rights in this situation??


Asked on 8/09/07, 10:16 pm

1 Answer from Attorneys
Stephen Starr Starr & Starr, PLLC

Re: Money used in real estate improvement

The situation you describe is not a simple matter that lends itself to a short response on this website.

You are going to need to hire an attorney and pay him or her for a consultation to have him or her review whatever documentation you have supporting your version of events, discuss the facts with you and provide you with an overview of your rights and potential exposure (if any). The attorney you hire may also need to do some legal research on the issue(s) you describe to determine how NY courts have ruled in similar matters in the past.

You can find a lawyer by reading answers to other similar questions here on Law Guru, or by calling the Legal Referral Service of the Bar Association in the County where you live.

It may be useful in your sitution to meet with a lawyer who is knowledgeable concerning partnership and real estate matters.

Feel free to visit the Frequently Asked Questions (FAQs) on our website at www.starrandstarr.com/faqs.htm for free answers to a variety of general legal questions, including an overview of the litigation (lawsuit) process.

The foregoing is not intended as legal advice for your specific situation and is intended to provide general information of interest to readers of lawguru.com.

Best regards,

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Answered on 8/10/07, 10:03 am


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