verbal agreement

Texas

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The home we live in used to belong to my Grandfather. A couple years ago, he offered to sale it to my husband and I. We attempted to get a loan but weren't able to. So the three of us (husband, grandfather and myself) sat down and made a verbal agreement that we would put money in an account as we were able to. No set amount per month to save was said, nor was a timeframe put on it. If he were to be living when the full amount was there, we would give it to him. If he were deceased, when the full amount was there, it would be divided between his four daughters. None of the daughters were there during the agreement. He then legally signed the house over to us and it is in our name. We have very gradually been putting money aside as we have had some financial difficulties. Well sadly, my Grandfather passed away early December 2007. I have recently been getting emails from 3 of his daughters stating that they want their part of the money now. And one of them has threatened to sue us for her part. Would she have a case in court?

Verbal agreements are worthless legally.

Do you have documentation that the sale actually took place (quitclaim deed, did you actually pay him anything in cash or by check?)? Did he leave a last will and testament that is being probated in court? Does the will mention anything about the home?

You need to be taking your documents, if you have any, to a real estate attorney to see if the transaction you did was legal or not. If house is mentioned in the will it will eventually go through probate proceedings where the heirs share will be determined, so the daughters may not have to sue but this is a mess that needs to be straightened out by legal advice.

My Grandfather went through a lawyer when he signed the house over to us. I don't even think the lawyer was made aware of the agreement. So it was basically like he was giving us the home. In his will, he stated that if the home were in still in his name, it would be sold and divided between his four daughters. But it has been in my husband and I's name since 2005. And no we hadn't paid him anything.

The house is in your husbands name since 2005.
Your grandfather has died.
There is no money in this verbal agreement account that is located where?
Or there is money in this account that is located where?

The daughters of your grandfather (any of those daughters your mother by chance? Just wondering....) Want the money from this account if any exists. They have no documentation of this verbal agreement.

Legally standing your husband holds ownership of the house. You as his spouse
share in that ownership. I doubt there is much if anything that the daughters can do.

Ethically speaking you and your husband will have to come to terms on what is correct to do. What you can live with knowing that your grandfather wanted money for the house to go to his daughters. Which are your Aunts correct?

Tough call. I wouldn't want to be in this fix. Personally I would do my best to be as fair as possible to the daughters.

Legally you and your husband can do whatever you like with the house. It's in his name. He owns it.

Hatrack,
The house is in both my name and my husbands. We never went and opened an acct. because we had one open already that wasn't being used. We put money in it, but ended up using it because we ran into some financial difficulties. We have slowly started building it up again.

Yes, one of the daughters is my mother, she is not one of the 3 demanding money. She actually doesn't talk to her sisters anymore because of many family problems. And no they have no documentation of the agreement. There was never any kind of written documentation.

Ethically speaking, my husband and I have never denied the agreement to any of the 3 daughters. We have never once said we weren't going to go through with it. And there was never any issues concerning the house until my grandfather passed away. About a week after the funeral, they started demanding their money.

txgirl1977 said:

Ethically speaking, my husband and I have never denied the agreement to any of the 3 daughters. We have never once said we weren't going to go through with it. And there was never any issues concerning the house until my grandfather passed away. About a week after the funeral, they started demanding their money.

Click to expand...

Then what's the problem...give them each 25% of what's in the account (your mother doesn't have to accept if she doesn't want to)

Because the entire amount isn't there yet. They (the 3 daughters) have even requested that my husband and I take out a loan to get the rest of the money. There is no way that we are doing that.