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Binding Agreements

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NEIASD

Junior Member
What is the name of your state?What is the name of your state? Iowa

This is regarding a family friend.

Doug who owns a construction business paid the city $2,000.00 for several houses. He was allowed to move the houses from those lots. He placed one house on his own property, and made a verbal agreement with his son Matt, that he could purchase the house for $15,000.00. Matt agreed.

Matt was working for his father Doug at that time. No payment structure was established. Matt was living in the house. Doug did not pay Matt as an employee--or when he did the checks would bounce. So Matt had to take another job. At that time Doug demanded payment for house. Matt attempted to finance through the bank with Doug as a co-signer and failed. Matt secured alternative financing through another family member and tried to pay his Dad at that time for the house. Doug rejected the payment stating he didn't want to sell it anymore, and served Matt with a 3 day eviction notice. They went to court and the judge agreed that since Doug owns the house, and there is non payment he can evict him in three days.

Matt has put $20,000 worth of labor and materials in this house, in which one of the Debts ($2,000) to a brother-in-law who was the contractor is not paid. He planned on paying that debt when he secured financing.

For some reason, even though Matt technincally didn't own the house--the tax statements for the house (not the land) are in his name.

Matt moved out as ordered, and now wants to sue his father Doug for the labor and materials that he invested in a house he thought he was going to buy. The son-in-law would like to collect his $2,000.00 also.

There was never anything in writing. Does Matt have a case?
 


HomeGuru

Senior Member
NEIASD said:
What is the name of your state?What is the name of your state? Iowa

This is regarding a family friend.

Doug who owns a construction business paid the city $2,000.00 for several houses. He was allowed to move the houses from those lots. He placed one house on his own property, and made a verbal agreement with his son Matt, that he could purchase the house for $15,000.00. Matt agreed.

Matt was working for his father Doug at that time. No payment structure was established. Matt was living in the house. Doug did not pay Matt as an employee--or when he did the checks would bounce. So Matt had to take another job. At that time Doug demanded payment for house. Matt attempted to finance through the bank with Doug as a co-signer and failed. Matt secured alternative financing through another family member and tried to pay his Dad at that time for the house. Doug rejected the payment stating he didn't want to sell it anymore, and served Matt with a 3 day eviction notice. They went to court and the judge agreed that since Doug owns the house, and there is non payment he can evict him in three days.

Matt has put $20,000 worth of labor and materials in this house, in which one of the Debts ($2,000) to a brother-in-law who was the contractor is not paid. He planned on paying that debt when he secured financing.

For some reason, even though Matt technincally didn't own the house--the tax statements for the house (not the land) are in his name.

Matt moved out as ordered, and now wants to sue his father Doug for the labor and materials that he invested in a house he thought he was going to buy. The son-in-law would like to collect his $2,000.00 also.

There was never anything in writing. Does Matt have a case?
**A: yes. Matt has a case. A case of floormattitis.
 

NEIASD

Junior Member
Okay--it's complicated

Aside from the bounced checks--he trusted his father. I guess he shouldn't have.
 

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