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-   -   Can I legally start a business on land if I only own 50% undivided interest? (http://www.sowpub.com/forum/showthread.php?t=8469)

varislost May 7, 2013 08:29 AM

Can I legally start a business on land if I only own 50% undivided interest?
 
This is a legal question. I own 50% undivided interest in a house and surrounding land in California. I want to start a business, bringing people to hike, do photography, etc. They would pay a "day fee" of $50/person. I would do a little advertising to get clients. Can I legally do this without involving the other undivided owner? Do I legally have to do some sort of profit sharing or paperwork with the other owner?

LindaC May 7, 2013 11:15 AM

Re: Can I legally start a business on land if I only own 50% undivided interest?
 
Hi Varislost,
LindaC here.

Best advice anyone can give you is seek legal council.

However, I'm curious as to why you don't want to
share with your partner?

My Best 2 U,
LindaC

MMacGillivray May 7, 2013 12:05 PM

Re: Can I legally start a business on land if I only own 50% undivided interest?
 
Quote:

Originally Posted by varislost (Post 32718)
This is a legal question. I own 50% undivided interest in a house and surrounding land in California. I want to start a business, bringing people to hike, do photography, etc. They would pay a "day fee" of $50/person. I would do a little advertising to get clients. Can I legally do this without involving the other undivided owner? Do I legally have to do some sort of profit sharing or paperwork with the other owner?


You need to go back to the terms and conditions which existed when you fell heir to or bought a 50% share in this land. There must be an agreement which specifies what happens to the income. How would you feel if your co-owner did the same to you?? If there isn't an agreement in place about income, I would suggest doing it now so that you both know what limitations there are on your ability to earn income from the property and what, if anything, has to be shared.

Good luck
Margaret

Robert J. May 7, 2013 03:09 PM

Re: Can I legally start a business on land if I only own 50% undivided interest?
 
Oh my! The red flags are up!

I'm thinking the 'whole' story might be quite interesting here ...

Seriously, legal questions require legal answers. Go to an attorney if you actually think you may be able to do this ... But ...

If I own a warehouse with a partner, 50/50, and I decide to lease out a portion of it without telling or sharing with my partner ...

If I have a shore house with my wife, and I decide to rent out weeks in the summer without telling her ...

Feels like the answer is 'no' ... But I am not a lawyer, nor do I play one on TV...

Phil May 8, 2013 01:48 AM

Interest of the business entity that owns the land, reasonable that at least 50%...
 
Quick food for Thought as per Google and company...

Interesting Reading on the related Subject(s)...

Of course, After checking around even More with Google...

Donations and having a Lawyer and an Accountant is a [Definite] must Have/Do... ;)

Interest of the business entity that owns the land, It seems reasonable that at least 50%...
https://www.google.com/search?q=+int...ient=firefox-a

All the best,
Phil

Glenn May 9, 2013 04:02 AM

The Home/Biz Owner Whose Wife Was Sleeping w/His 50/50% Partner
 
Thanks Varislost,

Interesting question.

First - Know this about attorneys.

Their Only job is to justify their pay by telling you what You CANNOT do. So
my affluent mentors and clients only call them in After the Thinking and
negotiating is done.

That said...

A Carpet Store Client shared ownership of a store and the house next door - 50/50 with a partner.

The partner was stealing. Selling carpet under the table.
And sleeping with my clients' wife.

A Rotten situation.

But the poor guy didn't dare say anything.

His wife was also his #1 Carpet salesperson.

I put a couple mentors on the phone to Brainstorm. And one asked the
question that SOLVED his problem.

The question was, "When was the last time you had a real estate appraisal
of the land, the store, the house?

Turned out it had not been checked for 7 YEARS.

The man had a Property Assessment done on the QT.

Come to find out the property is worth 800% more than he and his partner
and his wife THOUGHT. (Several million more.)

So he went to the bank. Showed his 50% equity value in the property.
Got a loan.

Then went to his partner. Made him an offer. Just a tad Higher than
it was worth - under the 7 year old evaluation.

The partner Jumped at the munny.
And took the man's wife with him.

Both Left him thinking they stole even more off the guy.
But he got the last laugh.

BUT NEVER TOLD Either of them.

AND
the
man was so grateful he paid 10Grand to come to my seminar. Where we
taught him how to Use NLP and Invisible Psychology Techniques to hire and
train salespeople to grow his sales much higher than before.

Without Wifey.

Thanks,
Glenn Osborn

P.S. - Obviously - every situation is unique. But this Case Study may give
you some ideas to work with.

unpinkpanther April 21, 2021 06:02 AM

"But THIS is why I LOVE SOWPub..."
 
Thanks to whoever dug up this interesting thread!

And yes, my personal experience with legal professionals is kinda similar to Glenn's quip here.

Thanks, Gordon & Dien, for keeping this "business school" up and running...

Quote:

Originally Posted by Glenn (Post 32727)
Thanks Varislost,

Interesting question.

First - Know this about attorneys.

Their Only job is to justify their pay by telling you what You CANNOT do. So my affluent mentors and clients only call them in After the Thinking and negotiating is done...

Thanks,
Glenn Osborn



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