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Updated 10 months ago,
Partnership Buyout and Lien Question
I am in a partnership that is developing a residential subdivision. We had some things come up that I did not agree with, and I asked to step away. At this point, everything is documented regarding my departure. My total investment is to be paid back to me as a buy out. Problem is, some of the members are strapped for cash. I am trying to work with these guys and have extended the deadline a couple of times, and we just passed another deadline. I am getting concerned. Phase One of the development is about to be approved any day now, and sales contracts have already been signed for a number of these lots. The partners tell me that I will be paid once they get their hands on the proceeds. My buyout will be approx one-fifth of the gross proceeds from Phase One. This makes me wonder if my buyout will be a priority. If not, we roll into Phase Two, a much larger part of the development and a perhaps a much longer wait for my cash. I think it would be a good idea to place some kind of lien on Phase One to make sure I get my money out of the these proceeds. Does anyone know what kind of lien that should be filed in a case like this?