Real Estate Disputes Attorney in Los Angeles, California

In your practice, what types of issues do see that give rise to real estate litigation?

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In our experience real estate disputes arise between partners in a real estate investment. Typically taking the form of a limited liability company. When people form a partnership or limited liability company for the purposes of developing real estate they take on certain responsibilities. Such as, how much capital they’re going to contribute, how much capital they’re going to receive, profit sharing structures, additional capital calls, management of the LLC. All of those issues, unfortunately from time to time, result in litigation because parties have not properly documented the terms of their arrangement in their agreement.

 

That can go to the extent of their ownership interests. We’ve had cases where parties have disparate views of what ownership interests they have in these LLCs, which in turn means what interest they have in the property. All of those issues result in some fairly substantial litigation.

Los Angeles, CA commercial litigation attorney Brian M. Grossman talks about the types of issues that give rise to real estate litigation. He shares that in his experience, real estate disputes most often arise between partners in a real estate investment, typically structured as a limited liability company. When individuals form a partnership or LLC to develop real estate, they assume responsibilities such as determining capital contributions, profit-sharing structures, additional capital calls, and management of the company.

Unfortunately, when those terms are not properly documented, disputes frequently turn into litigation. Conflicts can extend even to ownership interests, with parties holding vastly different views of what share of the LLC—and therefore the property—they actually own.

He has handled cases where such disagreements escalated into substantial litigation, underscoring the importance of clearly defining and memorializing the terms of any real estate partnership or investment arrangement from the outset.

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