Legal Question in Real Estate Law in New York

hello, here is a scenario. A villa cost $50,000. I have 10 co-wokers interested in the villa also. I write individual contracts stating that a $7,000 deposit will get them a weeks stay at the villa. All 10 co-workers agree. Now i have collected $70,000. I will pay the $50,000 to purchase the villa. and any additional fees will be covered with the extra $20,0000. My co-workers get their week in the villa and now i own the villa. (of course these are not real figures.) I am asking , if this is illegal any way ,how? and what can i do to make it work. I am not a realtor or have any speacial certification, but if all parties agree to the contract and i clearly state i am not a broker, could this be a legal situation?


Asked on 1/28/10, 1:05 am

1 Answer from Attorneys
Michael Markowitz Michael A. Markowitz, PC

I do not think it is illegal. However, I would create either a corporation or a limited liability company. The legal entity would own the villa. Each individual would own a share or a percentage of the villa. There should be a shareholder or operating agreement. Among other things, the agreement would specify responsibility for taxes, insurance and maintenance. The agreement would specify dates of possession (which weeks they stay), how the shares would be transferred, and what happens if an individual violates the agreement.

Mike.

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Answered on 2/02/10, 5:08 am


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