Verbal Agreement on Property purchase

[Frustrated9*9]

We purchased property in Tn 2 years ago. We had a verbal agreement with children to pay us back. Each child in agreement to have a piece of property for a home. Payments have been made for over a year but now one has moved and no longer wants to pay anything. We have tried to adjust payment to make it easier, that payment change was accepted for a while but now, they no longer want to pay anything. We do have some emails and text msgs that support the verbal agreement and some bank history of previous payments made. Will a verbal agreement stand up in court if we try to get our money back ? What is that process ? Thank you

 

[LdiJ]

We purchased property in Tn 2 years ago. We had a verbal agreement with children to pay us back. Each child in agreement to have a piece of property for a home. Payments have been made for over a year but now one has moved and no longer wants to pay anything. We have tried to adjust payment to make it easier, that payment change was accepted for a while but now, they no longer want to pay anything. We do have some emails and text msgs that support the verbal agreement and some bank history of previous payments made. Will a verbal agreement stand up in court if we try to get our money back ? What is that process ? Thank you

Whose name is on the deed to the property?

 

[Frustrated9*9]

Ours and all 3 of the kids. The 3 that were making payments.

 

[LdiJ]

Ours and all 3 of the kids. The 3 that were making payments.

Well, it complicates things that the child's name is on the property. Real estate agreements have to be in writing to be valid. Rather than suing, you might want to see if you can get them to agree to taking their name off the property. That way it will belong only to the two that are paying when you pass away.

 

[Frustrated9*9]

Would be no problem getting their name off. I am frustrated that they no longer want to pay us back. I want to hold them responsible for that verbal agreement to pay us back their portion.

 

[Just Blue]

Would be no problem getting their name off. I am frustrated that they no longer want to pay us back. I want to hold them responsible for that verbal agreement to pay us back their portion.

Who's idea was it to do this land purchase/verbal agreement?

 

[Frustrated9*9]

It was the kids idea. We sold our house, bought the land, put a new home for us on it.

 

[Frustrated9*9]

It went like this. Kids were down vacationing in Tn. They loved the area and told us that they found a great piece of property. Thwy would love for us to buy it as their credit was not good. They would make monthly payments to us and everyone could pick a spot to have a home on it. We took out a loan and bought property, they started paying us back. Within 6 months, we sold our home and paid off the loan, moved to the property and put a new trailer for us on it. Over a year later after regular payments made, 2 kids got married, they were just a couple when we started this. They have since moved back home , bought a house and no longer want to pay their share.

 

[Just Blue]

It went like this. Kids were down vacationing in Tn. They loved the area and told us that they found a great piece of property. Thwy would love for us to buy it as their credit was not good. They would make monthly payments to us and everyone could pick a spot to have a home on it. We took out a loan and bought property, they started paying us back. Within 6 months, we sold our home and paid off the loan, moved to the property and put a new trailer for us on it. Over a year later after regular payments made, 2 kids got married, they were just a couple when we started this. They have since moved back home , bought a house and no longer want to pay their share.

Are the "kids" your children?

 

[Frustrated9*9]

A daughter, who is still paying. Granddaughter and now husband who are not. I guess what really frustrates me the most is that wife and I gave up all our friends and family to sell and move here. I left a good job and she is on SS. I have found another job but without their payments, we will have some struggles. Reselling and starting over is not an option. I want to hold them accountable and will admit, this is causing issues with wife who is their mother/grandmother.

 

[Frustrated9*9]

Should say that I am only related by marriage. So, while the wife does not want to sue her own. I am more concerned in how we will survive.

 

[adjusterjack]

2017 Tennessee Code
Title 29 - Remedies and Special Proceedings - Chapter 2 - Statute of Frauds
§ 29-2-101. Writing required for action.
(a) No action shall be brought:
(4) Upon any contract for the sale of lands, tenements, or hereditaments, or the making of any lease thereof for a longer term than one (1) year;
unless the promise or agreement, upon which such action shall be brought, or some memorandum or note thereof, shall be in writing, and signed by the party to be charged therewith, or some other person lawfully authorized by such party. In a contract for the sale of lands, tenements, or hereditaments, the party to be charged is the party against whom enforcement of the contract is sought.
(c) For purposes of this section, a writing, or some memorandum or note thereof, includes a record.

https://law.justia.com/codes/tennessee/2017/title-29/chapter-2/section-29-2-101/
Do you have anything in writing memorializing the agreements? Doesn't appear to actually require a written "contract."

Would be no problem getting their name off.

Are you sure? They would have to sign quitclaim deeds. Asking somebody to sign away something they own could be problematic. But if you can accomplish that, and the property is large enough, you can subdivide it and sell off a piece. Just don't tell anybody you are going to do that until after you get the quitclaim deeds or they will hold you up for a share of the proceeds.

 

[justalayman]

it doesn’t appear this is a contract for real estate but rather you loaning them the money to purchase their share of the property.

If they won’t pay, you sue them and try to collect on the judgment. I don’t see you having any rights to attempt to force them to relinquish their ownership interest in the land whether they pay you or not.

 

[justalayman]

https://law.justia.com/codes/tennessee/2017/title-29/chapter-2/section-29-2-101/
Do you have anything in writing memorializing the agreements? Doesn't appear to actually require a written "contract."



Are you sure? They would have to sign quitclaim deeds. Asking somebody to sign away something they own could be problematic. But if you can accomplish that, and the property is large enough, you can subdivide it and sell off a piece. Just don't tell anybody you are going to do that until after you get the quitclaim deeds or they will hold you up for a share of the proceeds.

since the kids have been making payments, why wouldn’t they be entitled to compensation for relinquishing their share to the op?

 

[LdiJ]

it doesn’t appear this is a contract for real estate but rather you loaning them the money to purchase their share of the property.

If they won’t pay, you sue them and try to collect on the judgment. I don’t see you having any rights to attempt to force them to relinquish their ownership interest in the land whether they pay you or not.

Suing a family member is seen (by the family member)as a very hostile act that has long term effects on the family as a whole. Its really something to be avoided at all costs. If they will give up their ownership so that some other kind of financial arrangement can be made (like subdividing and off part of it) it will lessen the long term negative effects on the family.