Question:
I recently offered to buy an industrial property that was locally advertised. Both parties signed the agreements and I met all my obligations. However, before transfer the seller said that there are six partners who are in dispute regarding the sale and now want to cancel the agreement.

I want the property. What are my rights?

Answer:
Much depends on the rights of the partners and whose name appears on the ownership papers. If the person you contracted with is the only person who is listed on the title deed then he has no case and the transfer must go through.

However, if the other partners' names appear on the title deeds, as part owners they have to sign off on the transaction. If he did not consult with them to get their agreement on the sale they can put a spanner in the works.

If you want the property you could go the legal route and if that fails you could maybe sue for damages, because you acted in good faith. But, this is costly. It could also be a ploy to get you to up your offer; nowadays people will do anything to make a fast buck.

The most important thing for you is to not get emotional about the property as this will cost you money in the long run, either in the form of a higher price or legal fees.

Your best bet is to consult a property attorney and ascertain your rights to see if there is a case to sue. Otherwise you will have to walk away.

In future when you want to purchase a business property or you are purchasing a property from a company you should get in writing that the person you are dealing with is authorized to sell and that there are no other parties laying claim to the property.

If I was you and they asked me to up my offer, I would call their bluff and walk away from the deal and see what transpires. It is difficult to believe that a business owner would be so stupid as to not consult with his partners before selling off a major asset, so you need to weed out the real motives.

A consultation with a lawyer will give you ammunition in the discussion, because they will see that you know your rights. In fact, it would be better still if you take a lawyer with you to the meeting.