How to get out of a real estate investment that’s being mismanaged?
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How to get out of a real estate investment that’s being mismanaged?
I bought a 1/2 share in Banyuls Investment, LLC, a Nevada corporation investing in an apartment house in France. The investment in my opinion (and other LLC members) is being mismanaged. We are kept in the dark regarding the status for long periods of time. The investment was paid by my Roth in Euros and the value of the Euro still makes the value theoretically intact. Is there a way to get out of this, or am I at the mercy of the organizer’s bad management practices?
Asked on December 5, 2010 under Real Estate Law, New Mexico
Answers:
M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney
Answered 13 years ago | Contributor
Was there a prospectus of any type or any investment information that you read through before you invested? Did it give any information as to the management or what the management responsibilities were or did it give them free reign to manage as they saw fit? Obviously they can not violate any laws but bad management is not necessarily actionable in any way. Unless they are violating agreements or putting your investment at risk you may be stuck with it. But I would consult with an attorney in your area and bring with you the evidence of mismanagement for him or her to take a look at. If there are glaring issues then your options can be explained. Good luck.
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