Real estate partners can disagree about money, property management or when to end the partnership. These disputes often start over managing the property, buyout values or one partner failing to pay rent or meet their responsibilities. In Boston’s competitive real estate market, these can escalate quickly given the range of legal claims involved.
Legal options when facing a difficult partner
Massachusetts law gives several options for resolving problems between real estate partners, such as:
- Breach of contract claims: If a partner violates obligations in the partnership or operating agreement, another partner may ask the court to enforce the contract or pay damages.
- Fiduciary duty claims: Partners generally owe fiduciary duties, including duties of loyalty and care, depending on the nature of the business entity and the governing agreement. When a partner places their own interests ahead of the partnership’s interest, the other partner can sue them for breach of fiduciary duty.
- Partition actions: In some cases, the co-owners can ask the court for a partition of the property. This forces a sale or divides the physical asset.
- Dissolution or buyout: Partners may ask the court to end the partnership, or one partner may buy the other’s share so the business can continue.
- Injunctive relief: If a partner is causing immediate harm, such as leasing property to a company at below-market rent, the court may order them to stop the action.
Solving real estate partnership problems is about more than winning the case. Partners also need to protect their property’s value and their financial assets. Effective litigation helps partners obtain financial information, get a fair price for buying out the other partner’s share and leave the partnership with fewer unresolved issues.
Securing your assets through litigation
Real estate partnership litigation is not easy, but the right legal strategy can make a real difference. Acting quickly, documenting the dispute and consulting an attorney early can give partners a chance at protecting both their investment and peace of mind.
