Stop illegal real estate sale?

The property is deeded to LLC, I am one of the 3 members of same LLC and have 45% ownership. How do I stop/prevent illegal sale of the property. I am fully protected by operating agreement. What if other partners disregard the operating agreement and still go ahead with the sale and the buyer is ready to buy.

Is there any way that I can tell registry of deeds to stop the sale or show deed as cloudy.

Is there any way that deed cannot be transferred etc. I understand that I will get answer to get operating agreement reviewed by attorney. Attorney can only help me after wrong/illegal transaction has been done.

Other partners will do any illegal way to transfer but I want to totally make it block and make it happen per operating agreement. Yes I can sue after the illegal transfer but at that point I will be looser and it will be too late.

Other partners should go by per operating agreement. As we all understand that operating agreement is not recorded anywhere and it is a contract between the members and each member has a copy.

As a summary: Can other partners disregard operating agreement and still go ahead with the sale of the property and prospective buyer is aware of this etc. Who should I notify to stop this happen to begin with.

Update:

thanks for your expert opinion. Please let me know if I can clarify anything. Thank you.

Update 2:

It is an commercial property and LLC in the state of Massachusetts.

Update 3:

LLC and property is in Massachusetts.

Update 4:

I got following answer from "Anonymous"

"One thing you can do is make it very known that there is a disputed claim on the property. Potential buyers do not want to step into a transaction with a partnership that is not in agreement. It will make the property far less valuable and attractive. It's an obstructionist move, but you can make a stink."

How can I do this Sir/Mam? What do I need to do? Where I should go? How do I make it happen,

Thank you

Update 5:

Does the LLC agreement state that there must be unanimous agreement to sell the property?

Yes but I am still concerned.

Update 6:

Hi Jillian,

I understand that I can take them to the court or sue them for damages. Is there any way to prevent the sale/transfer all together. Sue does not help and suing only make sense if other party has deep pockets/assets. Suing later is not an option. Please advice if there are other ways to prevent this to begin with.

How do I make the property disputed etc.

3 Answers

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  • 6 years ago
    Favorite Answer

    Does the LLC agreement state that there must be unanimous agreement to sell the property?

    If not, then there must only be a controlling majority in agreement. If the other 55% wanted to sell, they can go above you. This is one of the reasons that controlling shares are so valuable.

    One thing you can do is make it very known that there is a disputed claim on the property. Potential buyers do not want to step into a transaction with a partnership that is not in agreement. It will make the property far less valuable and attractive. It's an obstructionist move, but you can make a stink. But, you are also shooting yourself in the foot if they still sell it but for less than the real value.

    ***Edit, there is no easy mechanism for you to make a stink about sale. You'll have to send certified copies to each of the partner members that you are not in agreement over the sale. If you partnership agreement states unanimous agreement of all partners, let them know that you will seek legal recourse to block any sale. You'll also have to sign some papers along the line during the sale. Refuse to sign them. Let the buyers know you do not agree.

    Hire an attorney to play word ninja with your partners.

    Basically, just make a stink anyway you can. It will make the place hard to sell. But, if they do, you'll make less money.***

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  • 6 years ago

    The LLC agreement should state who the principal owner is, and that person may be able to exercise contracts without input from other members. But you also stated that you need unanimous agreement in order to sell... I am pretty sure all members of the LLC would need to sign the sale agreement - so you just dont sign it and no sale could occur. Get a lawyer to review the LLC agreement with you.

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  • 6 years ago

    you would have to sign the deed and purchase agreement

    on the part of the family

    why not get the other owners to buy out your piece.

    what is it that you are not sharing;

    I don't want to sell because..............?

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