Legal advice non performing partner

[John Gochangco]

I’m currently facing a situation with a non-performing partner in a multi-family real estate investment. My partner is not fulfilling their responsibilities as agreed, and I'm considering taking legal action to resolve the issue. Could you recommend the best type of legal assistance or an attorney who specializes in partnership disputes, real estate law, or contract enforcement in a business setting?


I’m in a 50/50 partnership in a multi-family investment property that originally had 13 units, but we were forced to sell 3 units to cover ongoing expenses. The problem lies with one of my partners, who is also the property manager. They have been completely unresponsive, and as a result, we’ve had three vacant units for several months (though I’m unsure of the exact timeline, as I handle the finances and have been kept in the dark). This has further strained our finances. Additionally, there was an instance where an AC unit was out of service for over a year, leading to lost profits. Overall, the property management has been terribly mismanaged.

[Chris Seveney]

Quote from @John Gochangco:

I’m currently facing a situation with a non-performing partner in a multi-family real estate investment. My partner is not fulfilling their responsibilities as agreed, and I'm considering taking legal action to resolve the issue. Could you recommend the best type of legal assistance or an attorney who specializes in partnership disputes, real estate law, or contract enforcement in a business setting?


I’m in a 50/50 partnership in a multi-family investment property that originally had 13 units, but we were forced to sell 3 units to cover ongoing expenses. The problem lies with one of my partners, who is also the property manager. They have been completely unresponsive, and as a result, we’ve had three vacant units for several months (though I’m unsure of the exact timeline, as I handle the finances and have been kept in the dark). This has further strained our finances. Additionally, there was an instance where an AC unit was out of service for over a year, leading to lost profits. Overall, the property management has been terribly mismanaged.

 1. Fire him as the property manager. The agreement I hope does not state that he must be the property manager. It probably says something along the lines of as part of being a partner he will provide those services.

2. After you do that then you offer to buy him out of the deal, if he says no then get your attorney to turn it up a notch.

If you are kind and generous and do nothing, you will lose a lot of money. Business is business - do what you need to do.