Verbal agreement about family owned property

[Wlfswmn]

We had a verbal agreement to move into my grandmother's home, pay the bills and care for her around the clock on exchange, I would be given the house once it was paid off. When my grandmother died they changes the agreement. Whay are my rights. I paid the bank directly from my account as well as all utilities.

 

[Just Blue]

We had a verbal agreement to move into my grandmother's home, pay the bills and care for her around the clock on exchange, I would be given the house once it was paid off. When my grandmother died they changes the agreement. Whay are my rights. I paid the bank directly from my account as well as all utilities.

You verbal agreement wasn't legally enforceable. Google "Statute of Frauds".

 

[quincy]

What is the name of your state?

 

[Wlfswmn]

What is the name of your state?

Michigan

 

[Taxing Matters]

What is the name of your state?

In addition that important piece of information, what evidence do you have of this agreement (other than your own testimony, of course)?

You verbal agreement wasn't legally enforceable. Google "Statute of Frauds".

Not so fast. While nearly every state adopted the old English statute of frauds, which requires certain contracts to be in writing, including contracts for an interest in real estate, the states vary significantly on the extent to which certain common law exceptions to that rule apply. One of the more common exceptions is one for full performance (and in some instances even part performance) by the plaintiff for his part of the deal.

 

[reenzz]

Any agreement for the sale or transfer of real property MUST be in writing.

 

[Wlfswmn]

In addition that important piece of information, what evidence do you have of this agreement (other than your own testimony, of course)?



Not so fast. While nearly every state adopted the old English statute of frauds, which requires certain contracts to be in writing, including contracts for an interest in real estate, the states vary significantly on the extent to which certain common law exceptions to that rule apply. One of the more common exceptions is one for full performance (and in some instances even part performance) by the plaintiff for his part of the deal.

Should we consult a lawyer? Is it worth it? We have a 9 year history of paying this mortgage and utilities and the family member has no rental agreement

 

[Taxing Matters]

I paid the bank directly from my account as well as all utilities.

Also, I'm unclear on this part: were you paying the mortgage directly to the bank? If you weren't paying the mortgage, who was?

 

[Wlfswmn]

Also, I'm unclear on this part: were you paying the mortgage directly to the bank? If you weren't paying the mortgage, who was?

We paid the bank directly and have records to prove

 

[quincy]

Wlfswmm, was your agreement evidenced in any way through email or text exchanges?

 

[Wlfswmn]

No. Can I post the entire story here?

 

[quincy]

No. Can I post the entire story here?

If your entire story does not include any personal information that through names or context can identify you or anyone else, you can post it here.

 

[Taxing Matters]

Should we consult a lawyer? Is it worth it? We have a 9 year history of paying this mortgage and utilities and the family member has no rental agreement

I definitely think you ought to consult a lawyer who litigates real estate/contract matters about this, and in particular ask about the application of the statute of frauds. Michigan is a state that recognizes in its common law the full performance exception to the statute of frauds. "Therefore, as indicated by the court's decision in Wing, there is no policy reason to deny application of the full performance exception to the statute of frauds." Pine-Wood Ltd. v. Detroit Mortg. & Realty Co., 95 Mich. App. 85, 92, 290 N.W.2d 86, 89 (1980). The question will be (1) whether you can prove the oral contract and (2) whether you can show you fully performed your part of the deal. Those are often not easy things to do, especially when the other party to the deal is deceased and you are instead battling her estate. But that said, it may be that you could succeed. You won't know until you consult a lawyer and show him/her the evidence you have. Paying the mortgage for 9 years in particular is likely a pretty good point in your favor since those payments relate directly to the real estate and would support the claim that you did have a deal involving the property. However, all the evidence available matters.

 

[quincy]

I agree with Taxing Matters that you will want to consult with an attorney in your area for a thorough review. One question just to be clear, though: You were not mentioned in the will?

 

[quincy]

Here is a link to a Michigan Supreme Court case that addresses the same issue you have:

https://law.justia.com/cases/michigan/supreme-court/1958/353-mich-212-2.html