General partnership in Detroit

[Jamarr Hill]

Hello everyone,

I partnered with a co-worker to buy 2 properties; one single unit for $16K and a 2 family flat for $25K. The first property was bought with cash and the next one was under a land contact. Both properties are in my partner's name. 

My issue is that we never signed a contract and I want out of the deals. We were supposed to get insurance on both properties and make higher quality repairs.  He refuses to get anything in them and I'm afraid of being held liable. Though my name isn't on any of the paperwork, I do not want to be held liable. 

I let him know know want out and he's willing to give back a portion of my investment. Any advice?

[Jeff B.]

DISOLVE the partnership.

In most cases, it is better to form a Limited Partnership to reduce liability.  In either case, a partnership is another form of a legal entity and has its own TIN.