Partnership Asset (Property) Sale - RESTRICTIONS

[DiamondD]

I am a 25% partner (aka Partner 1), with 3 other equal partners (aka Partner 2, Partner 3, Partner 4) in a property letting business. Partner 3 and Partner 4 are named on the Title Deeds of the properties. In addition, the existing mortgages are also in the names of Partner 3 and Partner 4. Within the partnership agreement, selling of properties requires unanimous consent of all partners. Partner 3 and Partner 4 have decided they want to sell the properties without the consent of Partner 1 and Partner 2.

I am aware of potential routes should a breach of contract occur, which I consider to be "reactionary".

However, is there anything that I and Partner 2 are able to do to immediately to prevent the sale of the properties (e.g., applying for a restriction with the Land Registry).

Any insight would be much appreciated.

[atticus]

You will have to assert and enforce the terms of your partnership agreement. I would consider preventive steps to be proactive.

[DiamondD]

atticus I agree with you, and enforcing the terms of the partnership agreement is one avenue we are exploring. However, given that a property was already sold without the consent of all partners, I'm also looking into the possibility of applying for restrictions to be placed on the other properties as a further layer of protection.

Regarding the restrictions avenue, it's a minefield and I'm interested in expert opinions into whether this is a potential route, given the makeup of the partnership where they are on the title deeds and mortgages. There is no trust deed in place...just the partnership agreement and documented communications that clearly indicate Partner 1 and Partner 2 have significant interest in all properties.