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Does the previous homeowner have a case?

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mrsrogers84

Junior Member
We live in Illinois and we bought our house in February 2010. At the time we were looking for a home we found this one and the guy was asking 150000 for it. We told him we could only afford to pay 130000 top dollar. He originally said no, but a few days later called us back to say that maybe we could do something like pay 130000 on paper and then pay him more money under the table. We talked about it and told him that we really didn't know how we would be able to afford that, but we could try making payments to him as time went on. He said let's just go ahead and go to the closing and then we can write something up afterwards. So we closed on the house, signed all the contracts and everything saying we were paying 130000 for the house. A few days later he called and wanted us to sign a contract stating we would pay him an additional 10000 plus interest, but that we didn't really have to pay him interest, but that he had to put that in the contract because if he got audited he would have to claim the 10000 as income but if he made it look like he loaned us 10000 and we paid him back with interest he would only have to pay taxes on the interest. I told him at that time that I was not going to sign a contract that was illegal and also that would obligate me to pay him interest. He told me that was fine, that he would just open a savings account at a local bank, he would bring the deposit slips by our house, and that we could just deposit money in that account as we had extra. I told him that was ok. He never brought anything over and I didn't hear from him until today (3 years later). He called me to say that he noticed we hadn't put any money in his account. I told him that he never brought me any deposit slips and that was 3 years ago. He said he put them in the mail 3 years ago. I told him I never got anything and have never had a problem getting mail at this address. He said some stuff about how he was being charged by the bank for never using the account he set up. I then told him I had to go because my baby was screaming (that was true). I'm wondering, if he decides to sue me for this money, does he have a case? We signed a legal contract that we were paying 130000 for the house. Does he have an oral contract with us? We didn't set a date for payment or an amount. If so, does an oral contract override the written one we have? And since he wanted us to pay him illegally, should we even take part in that? I'm on an anxiety high about all of this, so any advice would help. Thanks!
 


swalsh411

Senior Member
First of all, who is on the title to the property?

I suspect the title never transferred, which means you have been living there rent free for 3 years. That sounds like a pretty good deal for you.
 

sandyclaus

Senior Member
We live in Illinois and we bought our house in February 2010. At the time we were looking for a home we found this one and the guy was asking 150000 for it. We told him we could only afford to pay 130000 top dollar. He originally said no, but a few days later called us back to say that maybe we could do something like pay 130000 on paper and then pay him more money under the table. We talked about it and told him that we really didn't know how we would be able to afford that, but we could try making payments to him as time went on. He said let's just go ahead and go to the closing and then we can write something up afterwards. So we closed on the house, signed all the contracts and everything saying we were paying 130000 for the house. A few days later he called and wanted us to sign a contract stating we would pay him an additional 10000 plus interest, but that we didn't really have to pay him interest, but that he had to put that in the contract because if he got audited he would have to claim the 10000 as income but if he made it look like he loaned us 10000 and we paid him back with interest he would only have to pay taxes on the interest. I told him at that time that I was not going to sign a contract that was illegal and also that would obligate me to pay him interest. He told me that was fine, that he would just open a savings account at a local bank, he would bring the deposit slips by our house, and that we could just deposit money in that account as we had extra. I told him that was ok. He never brought anything over and I didn't hear from him until today (3 years later). He called me to say that he noticed we hadn't put any money in his account. I told him that he never brought me any deposit slips and that was 3 years ago. He said he put them in the mail 3 years ago. I told him I never got anything and have never had a problem getting mail at this address. He said some stuff about how he was being charged by the bank for never using the account he set up. I then told him I had to go because my baby was screaming (that was true). I'm wondering, if he decides to sue me for this money, does he have a case? We signed a legal contract that we were paying 130000 for the house. Does he have an oral contract with us? We didn't set a date for payment or an amount. If so, does an oral contract override the written one we have? And since he wanted us to pay him illegally, should we even take part in that? I'm on an anxiety high about all of this, so any advice would help. Thanks!
I'm pretty sure that there's nothing they can do - as any real estate contracts must be in writing to be valid. That's why he tried to get you to sign a contract before, and why not signing it makes it unenforceable.

In addition, if we were to try to enforce the verbal agreement, there are too many unknown factors. Plus, I'm thinking that it's getting awfully close to reaching the statute of limitations.
 

mrsrogers84

Junior Member
First of all, who is on the title to the property?

I suspect the title never transferred, which means you have been living there rent free for 3 years. That sounds like a pretty good deal for you.

We own the property. We have the deed in our name. We purchased the house legally through a mortgage company in 2010 for 130000. We pay 1225.00 per month on the house, including taxes and insurance.
 

ecmst12

Senior Member
You don't owe the previous homeowner a thing, though you should have made it clear to him from the beginning that you never had any intention of paying a single cent beyond what was on the contract.
 

swalsh411

Senior Member
Thank you for clarifying. I agree you do not him them anything. Tell him you will report the harassment to the police if he continues to contact you.
 

BL

Senior Member
I don't know how purchasing an Auto in that matter is compared to buying a home , but me as the buyer and the seller agreed to put a lesser amount on documents that what the actual purchase price I paid was.

After taking the seller ( dealer ) to court for safety issue repairs , and I mention the purchasing matter to the Judge ,the Judge just said ,YOU agreed what was put on paper and that's it.
 

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