Trying to Sell Family owned building in NYC

[Jeff Norton]

Hello BP Community,

My family owns an apartment building in NYC (8 residential apts and 1 commercial ground floor). I inherited my share but no operating agreement was ever in place. My Italian Grandfather and his brothers bought it years ago. Currently, each individual share or Estate is on the deed. An attempt has been made to form an LLC/Operating agreement to protect from Liability as well as to transition into sale of the building as quickly as possible (in which a family meeting was held-all agreed to sell ASAP) However, for whatever reason not all family members want to sign the LLC/Operating agreement. (Some family members are over 75 years old). Several of us are trying o find the right solution to make the sale easier and less litigious. I think one solution could be that any member who wants to form the LLC/operating agreement can utilize owner/seller financing (building is paid off-no due on sale clause). The potential buyer can make a down payment equal to the pay-off to the family members who sell their share while the rest of us can get income from holding the note. The other option may just be one or more co-tenants can always buy out the others if they elect to dissolve the tenancy in common. The property can be sold and the proceeds would be distributed equitably among the tenants according to their ownership percentage. Any other thoughts or advice would be greatly appreciated. FYI the building is in the process of having a fulsome valuation done. THANK YOU BP!!