Can my ladlord back out of a rent to own agreement?

[twiggs2u]

My husband and I had a verbal agreement with his uncle to buy an auction house that he purchased. I had looked into getting a pre-approved loan to bid on it. He said that he would go ahead and buy it for us and we could fix it up and pay rent to him while our loan was going through. AFTER we worked on it, he said that he couldn't sell it to us for three years because of some tax he had to pay. Personally, I think that is a load of crap. Now he is hinting that he don't want to sell it to us. I have put alot of time and money in this houose. I know, I am very stupid for not getting it in writing. I was under the impression that in the state of Tennessee, a verbal agreement was binding. Can he evict us and not give us any compensation for the money that we spent on the house? Also, can he sell it to someone else after he had aggreed to give us first option to buy the house? I really need some help here and I don't have alot of time. Please respond. Thank you, Twiggy

 

[HomeGuru]

<BLOCKQUOTE><font size="1" face="Verdana, Arial">quote:</font><HR>Originally posted by twiggs2u:
My husband and I had a verbal agreement with his uncle to buy an auction house that he purchased. I had looked into getting a pre-approved loan to bid on it. He said that he would go ahead and buy it for us and we could fix it up and pay rent to him while our loan was going through. AFTER we worked on it, he said that he couldn't sell it to us for three years because of some tax he had to pay. Personally, I think that is a load of crap. Now he is hinting that he don't want to sell it to us. I have put alot of time and money in this houose. I know, I am very stupid for not getting it in writing. I was under the impression that in the state of Tennessee, a verbal agreement was binding. Can he evict us and not give us any compensation for the money that we spent on the house? Also, can he sell it to someone else after he had aggreed to give us first option to buy the house? I really need some help here and I don't have alot of time. Please respond. Thank you, Twiggy<HR></BLOCKQUOTE>

He can evict you but fight for compensation for materials and labor or shared equity in the sales proceeds.

I do not agree with the previous authors description of rednecks and southerners. Dems fightin words Bubba. I reckon my pappys gonna shoot ya full of holes. I come from down south too, yeth Jamaican Georgia.

 

[twiggs2u]

Thank you HomeGuru. I wasn't pleased with the first reply either. It is my husband's uncle who is the landlord and he has more than enough money. He dosen't smoke crack either. He buys property. I intend to sue the crap out of him if he does this. I just hope he decides to let us buy the home. All people in the south are not stupid hillbillies. Actually, I was born and raised in Chicago. I found more dishonest cheats and most unfriendly people up there than I ever did in the south. My family had four cars stolen and stripped up there in a matter of ten years. I couldn't even keep a bicycle for someone stealing it along with the security device. My family has been living her since 1981 and has yet to have a car stolen or robbed. I like it here much better and you couldn't pay me enough to move back there. Most of my family has moved too. I have some friends that live there and they tell me about it. I would much rather live here with the Bubba's and Bubbette's than the car jackers, muggers, burglers, murderers and so on. At least Bubba will stip to help you when you have a flat tire and wouldn't dream of taking any money for it. A simple thank you will do. Twiggy

 

[Prairielaw]

<BLOCKQUOTE><font size="1" face="Verdana, Arial">quote:</font><HR>Originally posted by twiggs2u:
My husband and I had a verbal agreement with his uncle to buy an auction house that he purchased. I had looked into getting a pre-approved loan to bid on it. He said that he would go ahead and buy it for us and we could fix it up and pay rent to him while our loan was going through. AFTER we worked on it, he said that he couldn't sell it to us for three years because of some tax he had to pay. Personally, I think that is a load of crap. Now he is hinting that he don't want to sell it to us. I have put alot of time and money in this houose. I know, I am very stupid for not getting it in writing. I was under the impression that in the state of Tennessee, a verbal agreement was binding. Can he evict us and not give us any compensation for the money that we spent on the house? Also, can he sell it to someone else after he had aggreed to give us first option to buy the house? I really need some help here and I don't have alot of time. Please respond. Thank you, Twiggy<HR></BLOCKQUOTE>

Generally any agreement regarding the sale of real estate needs to be in writing to be enforceable. However, as homeguru stated you may still be entitled to the expenses. In addition, I think it is worth talking to a lawyer to see if their is an exception here to the statute of frauds(the writing requirement) that allows you the basis to enforce this agreement. You relied on the agreement and partially performed -- that may be enough. Plus it will cost very little to talk to a lawyer compared to losing what you have put in plus moving expenses.

You can find a lawyer here at Free Advice or on our site in our Find a Lawyer Directory.

Law on, Kevin

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Kevin O'Keefe
Founder & Fearless Community Leader

[This message has been edited by Prairielaw (edited July 22, 2000).]

[This message has been edited by Prairielaw (edited July 22, 2000).]

[This message has been edited by Prairielaw (edited July 22, 2000).]

[This message has been edited by Prairielaw (edited July 22, 2000).]

[This message has been edited by m martin (edited July 24, 2000).]

 

[Tracey]

Definitely talk to a real estate lawyer post-haste. You may even be entitled to file a mechanic's lien on the house, which would allow you to be compensated for your expenses AND labor. After all, either you were people that uncle conned into doing free work on his house by promising to sell you the house at cost, or you were contractors he retained to fix up his house. Either way you get your investment back.

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This is not legal advice and you are not my client. Double check everything with your own attorney and your state's laws.

 

[twiggs2u]

<BLOCKQUOTE><font size="1" face="Verdana, Arial">quote:</font><HR>Originally posted by Tracey:
Definitely talk to a real estate lawyer post-haste. You may even be entitled to file a mechanic's lien on the house, which would allow you to be compensated for your expenses AND labor. After all, either you were people that uncle conned into doing free work on his house by promising to sell you the house at cost, or you were contractors he retained to fix up his house. Either way you get your investment back.
<HR></BLOCKQUOTE>
Thank you for the suggestion. I didn't know about the mechanic's lean. I am starting to believe that he conned us into this so he could get free work on his house and boy did it need it. I spent three months of pure hell cleaning, spackling and painting on this house. It had been empty for almost a year and the locan teenagers used it for a flop house. I worked five days a week at my job and worked Half day on Saturday ( bacause I work half day on Saturday) and all day Sunday and Monday on it. Not to mention the fact that I worked on it two to three days a week after I got off of work on it too. I can't begin to tell you about the damage that had been done to the house. I am going to go see an attorney this week and see what my options are. It always helps to have questions to ask about certain issues. The fact remains that first and formost, I want to buy the house. If he dosen't want to sell the house to me, I want to be able to make him pay for the hell he has put me and my family through.
Thank You,
Twiggy