North Beach Partners v. Sollner CA1/4

I. FACTS

In 2004, NBP, together with an investment group which included Sollner, purchased the six-unit building located at 3300 Clay Street (the property).2 The property was comprised of six units. At the time of the purchase, the buyers entered into a tenancy in common agreement. Pursuant to the agreement, the buyers were assigned exclusive

1 Unless otherwise indicated, all further statutory references are to the Business and Professions Code. 2 WB Coyle is the managing member of NBP.

1 occupancy rights to particular units. Sollner had the exclusive rights to units 1 and 4. NBP, however, also retained an interest in unit 4, in addition to management rights, under a profit-sharing agreement with Sollner. They intended to renovate the unit and resell it. NBP planned to obtain a public report for the property.3 In February 2008, Sollner sought to obtain confirmation that a public report was not necessary to sell unit 4 of the property. The Assistant Commissioner of the Department of Real Estate confirmed that a public report was not required assuming, among other factors, that Sollner owned the undivided interest for at least six months and did not purchase it with the purpose…