Purchased a residential property with son in law and it was agreed verbally that on sale or one of us moving out that any increase in value would be split between us on basis of what each of us put in. No written agreement was signed. It works out that I had put in 5/6 and he1/6 on basis of capital put in and mortgage interest paid. He has now moved out and stopped paying the mortgage and I want to buy him out. He says he is entitled to 50% of the increase in value of the property. Who is correct and what do we do about settling this?
2007-11-04 04:29:41 · 11 answers · asked by Andrew G 1 in Business & Finance ➔ Renting & Real Estate
In principle, a verbal agreement is as valid as any other. The trouble is that it's hard to prove; you can't take someone's words into court.
Are there any witnesses to what was said? If anyone else heard the words and can testify it would help.
Otherwise, the court will hear evidence and decide, as in all civil cases, on the basis of the balance of probabilities. It's impossible to say, even if I knew all the facts, what the court will decide.
You don't get justice from courts. What you get is the law - and then, only if you're lucky. Consult a lawyer to see if there is any law that covers your case, and if it would be financially worthwhile to take to the courts.
2007-11-04 04:43:52 · answer #1 · answered by Michael B 7 · 0⤊ 0⤋
I disagree with the above answers. As pointed out a verbal agreement is just as binding (in law) as a written one. However in this case if it went to court it would not be difficult to prove that you put in 5/6th and the other party only 1/6th. Therefore no reasonable County Court Judge would award 50-50 on the capital appreciation.
The difficulty here of course is getting him to sell his share to you if he doesn't want to - he probably realises that which is why he is asking for 50%. If I were in your shoes I'd keep paying the mortgage and tell him you will sue him for his 1/6th share if he doesn't pay it - that sorts that bit out, then offer him say 25% of the rise in value just to be amicable and get the thing sorted.
Good luck.
2007-11-04 20:52:01 · answer #2 · answered by derbyandrew 4 · 0⤊ 0⤋
Yeah, this an attorney question. I am curious what is your daughter saying? How much money are we talking about? Are you guys both on the note? You can have verbal real estate agreements, example, verbal lease. Purchases are a different and are covered by the Statute of Frauds, but I digress. It is your word against his but I assume you have receipts and cancelled checks to back up your 5/6 of payments. Also, he has left you hanging with paying all of the mortgage. If it went to court you would have to bring what is called a partition action to seperate your interests, you should win and get your 5/6 with the beforementioned payment proof and him just walking away from the property. You could file suit and try to mediate it. It all depends on how much money we are talking about, how reasonable you two are, family fall-out, and how much you are willing to put into pursuing it. But to put it simply from what you said you are right and you would most likely win if it did go to court.
2007-11-04 04:59:31 · answer #3 · answered by stephen t 5 · 0⤊ 0⤋
Verbal agreements are generally legally binding, but the tricky part is proving that the agreement exists, and what exactly was agreed to. That's why agreements should be in writing. If you can't prove the agreement, he'd most likely win if things go to court.
2007-11-04 06:00:33 · answer #4 · answered by Judy 7 · 0⤊ 0⤋
A verbal agreement is as legal as a written agreement.......unfortunately its just difficult to prove
It would be down to a judge at the end of the day....and he will make his decision on who he believes most
Do you have a family member or a mutual friend who you both respect and would listen to who could act as a mediator in order to resolve the issue between you?
2007-11-04 05:25:48 · answer #5 · answered by stormydays 5 · 0⤊ 0⤋
Yeah, the very first question is whether you have a witness that will testify that the verbal agreement did occur, otherwise, it will be hard to prove because it will be just your word against his.
2007-11-08 04:11:14 · answer #6 · answered by Anonymous · 0⤊ 0⤋
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2014-09-28 17:23:09 · answer #7 · answered by Anonymous · 0⤊ 0⤋
Well, as they say, a verbal contract is worth the paper it's written on.
Contact an attorney for advice.
2007-11-04 04:38:13 · answer #8 · answered by Anonymous · 1⤊ 1⤋
Gentleman"s agreement is valid if the man is still gentle. In such cases you should accept what you get. May be he will change his mind and do not give you what he is giving you today.
2007-11-04 05:19:22 · answer #9 · answered by ashok 4 · 0⤊ 0⤋
go to to have a contract. verbal agreements are here-say.
2007-11-04 04:41:43 · answer #10 · answered by jb 3 · 0⤊ 0⤋