We agreed to split any profits on the house after brokers fees etc.Any money over $200,000 we'd split.He claims to have spent about $8,000 in material.He promised the work would be done by the first week of June,2006.At the end of October he still wasn't done and I had to sell the house as is.I'm disabled and unable to work so I depended on him.I got less than $190,000 so do I owe him his money?If the agreement was to split profits wouldn't we also split the losses?
2007-02-03 12:13:32 · 6 answers · asked by buffalo 3 in Business & Finance ➔ Personal Finance
Do you have anything in writing? Otherwise, there's no real agreement.
You should probably talk with him about this and come up with a new agreement.
2007-02-03 12:21:24 · answer #1 · answered by Jen G 5 · 1⤊ 0⤋
I would check with the Home Owner's Association in your state. They would be one of your best sources, minus a lawyer. I'm sure this experience has taught you something: Never do business with friends or anyone else without: (1) A contractual agreement stating the promised finished date between the two of you. (2) A written list of supply costs, with receipts. I hope you are still friends, but unless you know this person's personality fairly well hold on for a possible contest on your friend's behalf if you don't pay and there is advisement not to "split" as per agreement. Sorry to be a "wet blanket".
2007-02-03 20:23:23 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Did you have nothing in writing? Did you not discuss worst-case scenarios? Are there valid reasons for his various delays? This was a business deal and as such deserved a legal & binding agreement.
I assume the answers are all "no" here. Is your friendship strong enough to withstand the need for 3rd party mediation if needed?
Personally, I would re-imburse him his $8,000 plus some extra for his efforts but nothing beyond that since you did not make over the $200,000.
2007-02-03 20:31:28 · answer #3 · answered by freek 1 · 0⤊ 0⤋
You prob at least owe him for the materials... Perhaps more seeing as you sold for under the 200K amount (real estate inst an exact science.. and you could have waited a little longer for the sale.. most do.. its almost inevitable that a sale dosent go through on a time table)
Never get in a business deal with a friend.. this is a prime example.
2007-02-03 20:41:48 · answer #4 · answered by darchangel_3 5 · 0⤊ 0⤋
Does he have receipts for $8K ?
Would you have been able to even sell it without the work ?
You said not finished, but you failed to say what was done .
You did not provide any real details, just ambiguous story .
Ask your Realtor what you would have sold the house for without the work .
You should have been getting receipts, disabled or not, so get them now.
It is time to do the real math that you neglected all those months.
2007-02-03 20:22:31 · answer #5 · answered by kate 7 · 0⤊ 0⤋
I agree don't pay him took him too long and hey he must of paid himself somewhere with the 8000.00 he claims he spent on materials.
2007-02-03 20:23:44 · answer #6 · answered by tdashnay 2 · 0⤊ 0⤋