Settlement dispute in a land trade
Settlement dispute in a land trade
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John Conner · External communityPost link
External question — Personal Finance Stack Exchange
Author: John Conner
Original post: https://money.stackexchange.com/questions/169642
License: CC BY-SA 4.0 — https://creativecommons.org/licenses/by-sa/4.0/
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A piece of land was bought. Party A contributed 1,500mil (paid fully and on time) and party B contributed 270mil (200mil upfront and 70mil due later, to be taken from the proceeds of sale).
Then later, the land was sold at 2,190mil.
Party A received all the money from the sale into his account and he should distribute the money.
He gave 350mil to party B to pay some expenses of the sale:
70mil broker fee (both party must pay since it’s a joint expense)
30mil broker fee (only party A’s obligation)
16mil which was already paid by party A but it is a joint expense which should factor in the equations.
Recall that party B had to pay 70mil from the original 270mil but what they did instead was that they used this 350mil to pay that 70mil.
Now my question is, considering everything, does this 350mil (if we consider they didn’t use it to pay their own 70mil obligation) cover all of the following?
All expenses including non-joint ones
Party B’s original and profit money
And is there anything left of the 350mil?
Essentially the question is, based on everything that I said does party A have to still pay extra money to party B or is the account balanced and done?
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user739 · External communityPost link
External answer — Personal Finance Stack Exchange
Author: user739
Original post: https://money.stackexchange.com/a/169645
License: CC BY-SA 4.0 — https://creativecommons.org/licenses/by-sa/4.0/
Adaptation: HTML converted to plain text; contact email addresses removed.
Assuming they'd agreed to split the profit equally, then A has paid B far too much and B should repay 161mil to A.
Given that we've just been told the expectation was that the profit and expenses should be split per share of contribution, the new spreadsheet looks like this and B should repay 271mil to A:
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