• FreeAdvice has a new Terms of Service and Privacy Policy, effective May 25, 2018.
    By continuing to use this site, you are consenting to our Terms of Service and use of cookies.

verbal contract involving realistate

Accident - Bankruptcy - Criminal Law / DUI - Business - Consumer - Employment - Family - Immigration - Real Estate - Tax - Traffic - Wills   Please click a topic or scroll down for more.

b11_

Member
What is the name of your state (only U.S. law)?

Pa.

Is a verbal contract made in the state of Pa. and involving Pa. realistate legal?

If a breach of the contract latter occured, would a Pa. court help resolve the situation?
 


b11_

Member
reply

Suppose the verbal contract, between the 2 owners of a Pa. property, was more complicated. Suppose a Pa. property was sold then the proceeds moved to another state to do a 1031 exchange then one of the 2 owners promised to buy the other half of the new property from the other owner but he never kept his word to purchase the other half of the new property.
 

Zigner

Senior Member, Non-Attorney
Suppose the verbal contract, between the 2 owners of a Pa. property, was more complicated. Suppose a Pa. property was sold then the proceeds moved to another state to do a 1031 exchange then one of the 2 owners promised to buy the other half of the new property from the other owner but he never kept his word to purchase the other half of the new property.
You will find an accurate answer at https://forum.freeadvice.com/showpost.php?p=2012783&postcount=2
 

tranquility

Senior Member
I agree with the posting by Zinger, but wonder:

A real estate sale jointly owned to an out of state 1031 exchange and a pre-existing agreement to purchase the remaining 1/2 of the property after the exchange. Right? And, all this is verbal?

Enforce the contract? No. No court will enforce an illegal contract. Sounds to me like a conspiracy to commit tax fraud and not a contract. I'd have to see the numbers in front of me and the business arraingement between the two owners before any sale, but bet me, when it's all laid out the government would have gotten less taxes than they would have deserved from this verbal deal.
 

b11_

Member
reply

Suppose the verbal contract consisted only of a promise to buy the other half of the new property. Would the contract be illegal?
 

tranquility

Senior Member
As others have written, contracts which of and concern real estate must be in writing and signed by the person to be enforced against. Google "statute of frauds". Don't start any more threads on the topic, this one is fine.

It is not the contract which is "illegal" in the scenario I envision, it is the attempt to do tax fraud. Why would you make such a complicated legal arraingement verbally?

Why didn't the partner just buy you out and then complete the exchange?

Quit trying to look for a way to enforce something which cannot be enforced. I say again, I think you and your partner were trying to be too clever and get away with something to save on taxes. Now I love saving on taxes and recognize "There are two systems of taxation in our country: one for the informed and one for the uninformed"(Judge Learned Hand) but, this verbal deal is almost certainly an attempt at tax evaision and not tax avoidance. One is legal and the other is not. Going to court will open up the doors of inquiry. Not only will you lose because of the statute of frauds, I believe you will lose because of an attempt at fraud.
 

Zigner

Senior Member, Non-Attorney
Suppose the verbal contract consisted only of a promise to buy the other half of the new property. Would the contract be illegal?
You will find an accurate answer at https://forum.freeadvice.com/showpost.php?p=2012783&postcount=2
 

b11_

Member
reply

You don't have all of the details. My brother and my mother(91 years old and trusting) are the owners of the new property. My brother proposed that he buy the other half of the new property. Mom, who is elderly, etc., doesn't need 1/2 of a property in another state. Furthermore she has never received any of the new property rent collected by my brother.
 

Zigner

Senior Member, Non-Attorney
You don't have all of the details. My brother and my mother(91 years old and trusting) are the owners of the new property. My brother proposed that he buy the other half of the new property. Mom, who is elderly, etc., doesn't need 1/2 of a property in another state. Furthermore she has never received any of the new property rent collected by my brother.
You will find an accurate answer at https://forum.freeadvice.com/showpost.php?p=2012783&postcount=2

(You CAN'T be this dense... :rolleyes: )
 

seniorjudge

Senior Member
You don't have all of the details. My brother and my mother(91 years old and trusting) are the owners of the new property. My brother proposed that he buy the other half of the new property. Mom, who is elderly, etc., doesn't need 1/2 of a property in another state. Furthermore she has never received any of the new property rent collected by my brother.

The answer:

Real estate sales require a written contract.


Or, in other words, real estate sales require a written contract.
 

Find the Right Lawyer for Your Legal Issue!

Fast, Free, and Confidential
data-ad-format="auto">
Top