man and woman arguing

Working with partners can be a great way to access more opportunities and invest in commercial properties and projects that you may not have been able to invest in on your own. What happens if you have a dispute with those partners though? If you cannot agree on what to do with an investment property, you have to figure out the best way to resolve your dispute or none of you are going to be able to make any profit. Our Long Island, NY real estate litigation lawyers may be able to help you.

Do You And Your Partners Have a Dispute Clause?

First, it’s important to check any contracts you have signed to see if there is a particular method of dispute resolution that you and your partners have already agreed upon. This is common in agreements like this. Even if things are going great when you first make a deal with someone, you have to leave open the possibility of a relationship going south or priorities diverging.

So if your contract already has a clause that says that disputes should be solved through the arbitration process, then you should prepare for arbitration. If you have some wiggle room concerning how a problem between partners gets solved, then we have another suggestion.

Have You and Your Partners Tried Mediation?

Sometimes a conflict between partners is just a communication issue that can easily be solved if everyone just sits down and hashes things out. This can be tough when tempers are running high though. This is why mediation can be a good way to address these kinds of disputes.

In a mediation session, you sit down with a neutral third party who tries to get you and the other party or parties to come to a mutually beneficial agreement. Mediation is private, so there’s no court record to worry about and you don’t have to be concerned that company secrets will be revealed. It’s also not a binding process, so if the dispute is not resolved to your liking you can head back to the drawing board.

Are There Buy-Sell Provisions in Your Contract?

Buying someone out of their share could be a viable option if you and your partners cannot come to an agreement. Your contract with your partners should have buy-sell provisions clearly outlined. If a dissenting partner no longer wishes to be involved with the project, you just have to offer them a fair amount for their share of your business.

Contact a Lawyer Today

If you need a lawyer to represent your interests in any kind of real estate dispute, contact David A. Gallo & Associates, LLP. We will do what we can to settle this argument between you and your partners so that you can get back to work.