Do I have to sell my house to tenant?

[Jehebo]

What is the name of your state? California

My uncle owned a house that had been in our family for a long time. I am his only remaining relative, so I inherited the house after he passed. We had wanted to move into the house ourselves, so we gave the tenants that currently occupied the house notice that we would not be renewing their lease. They have a year long lease that is up in April next year.

In response to the notice the tenants have told me that my uncle had promised that they he would sell the house to them once they saved up enough for a down payment for a mortgage. They say that by next summer they will have enough saved for the down payment.

They have an email from 6 years ago backing up this claim. I have not yet been able to verify whether or not this email is authentic. I’m not sure how to actually and it would be great if anyone could give me advice about that. The exact wording in the part of the email that’s mentions it is as follows:

“Zillow says the house is worth $449,000. If you’re willing to pay that much I will wait for you to save up for a down payment and sell it to you.”

If the email is authentic does it count as a contract that I have to uphold? I absolutely do not want to sell the house. I want to keep it and hopefully pass it down to my child.

Another question I have is if I am forced to sell do I have to sell it for the amount mentioned in the email? The house is worth much more now than it was back then.

 

[LdiJ]

What is the name of your state? California

My uncle owned a house that had been in our family for a long time. I am his only remaining relative, so I inherited the house after he passed. We had wanted to move into the house ourselves, so we gave the tenants that currently occupied the house notice that we would not be renewing their lease. They have a year long lease that is up in April next year.

In response to the notice the tenants have told me that my uncle had promised that they he would sell the house to them once they saved up enough for a down payment for a mortgage. They say that by next summer they will have enough saved for the down payment.

They have an email from 6 years ago backing up this claim. I have not yet been able to verify whether or not this email is authentic. I’m not sure how to actually and it would be great if anyone could give me advice about that. The exact wording in the part of the email that’s mentions it is as follows:

“Zillow says the house is worth $449,000. If you’re willing to pay that much I will wait for you to save up for a down payment and sell it to you.”

If the email is authentic does it count as a contract that I have to uphold? I absolutely do not want to sell the house. I want to keep it and hopefully pass it down to my child.

Another question I have is if I am forced to sell do I have to sell it for the amount mentioned in the email? The house is worth much more now than it was back then.

You should run it by a local real estate attorney and perhaps an estate attorney. You personally have no contractual obligation to the tenant but your uncle's estate could have if the tenant can prevail in claiming that as a contract. How did the house pass to you?

 

[Jehebo]

You should run it by a local real estate attorney and perhaps an estate attorney. You personally have no contractual obligation to the tenant but your uncle's estate could have if the tenant can prevail in claiming that as a contract. How did the house pass to you?

I inherited it.

 

[doucar]

I inherited it.

By your uncle's will or by intestate proceeding?

 

[Jehebo]

I inherited it.

By your uncle's will or by intestate proceeding?

There wasn't a will. I don't know what intestate proceeding is. They used the word probate. Is that the same thing?

 

[Zigner]

Frankly, a vague email with no details of the sale likely does not rise to the level of a contract, as there is no "meeting of the minds" about the terms of the sale. As suggested above, speak to a local attorney.

 

[LdiJ]

There wasn't a will. I don't know what intestate proceeding is. They used the word probate. Is that the same thing?

You really need to consult an attorney. If an attorney handled the estate, start with that attorney.

 

[zddoodah]

Section 1624(a) of the California Civil Code (commonly referred to as the "statute of frauds") provides that certain types of contracts "are invalid, unless they, or some not or memorandum thereof, are in writing and subscribed by the party to be charged or by the party's agent." In other words, certain types of contracts are unenforceable unless they are in writing and signed by the party against whom enforcement is sought (or that party's agent). Included among those types of contracts are agreements "for the sale of real property, or of an interest therein."

Sub-section (d) states as follows: "An electronic message of an ephemeral nature that is not designed to be retained or to create a permanent record, including, but not limited to, a text message or instant message format communication, is insufficient under this title to constitute a contract to convey real property, in the absence of a written confirmation that conforms to the requirements of subparagraph (B) of paragraph (3) of subdivision (b)."

Obviously, your uncle's email is not "subscribed" (i.e., signed). However, sub-section (d), by not mentioning email, may imply that an email is ok. Case law research is needed.

Let's assume for a moment that the statute of frauds isn't an issue and look at the content of the email. A contract is a mutual agreement supported by consideration. A purported contract needs to spell out at least the material terms of the agreement. Your uncle's email fails to meet these standards. Your uncle's email is, at best, an offer. Is there another email by which the tenants agreed to the offer? I would also suggest that many material terms of a real estate transaction are missing and that the email expressly contemplates a further agreement.

With all that being said, you've got nine months until the end of April 2024. That gives you plenty of time to obtain a thorough opinion from a local real estate attorney. Assuming the attorney tells you the tenant has no valid claim, you can use the opinion as a basis for a letter to respond to the tenants.

There wasn't a will. I don't know what intestate proceeding is. They used the word probate. Is that the same thing?

Probate is the process by which the estate of a deceased person is administered (in CA, probate courts handle other types of cases also, but that's not terribly relevant here). "Intestate" refers to the estate of a person who died without a will (and "testate" refers to an estate where the decedent had a will).

 

[not2cleverRed]

There wasn't a will. I don't know what intestate proceeding is. They used the word probate. Is that the same thing?

When someone dies without a will, "intestate succession" laws determine how the estate will be settled. (The laws vary by state.)

When an estate goes through probate, the division is guided by the will when there is a will, and by intestate succession when there is not a will.

“Zillow says the house is worth $449,000. If you’re willing to pay that much I will wait for you to save up for a down payment and sell it to you.”

If the email is authentic does it count as a contract that I have to uphold? I absolutely do not want to sell the house. I want to keep it and hopefully pass it down to my child.

Another question I have is if I am forced to sell do I have to sell it for the amount mentioned in the email? The house is worth much more now than it was back then.

I'd be tempted to tell them upfront to pound sand.

The fact is that it's been 6 YEARS and prices have substantially increased in the interim. They aren't even planning on having enough saved up for a down payment by the end of their current lease. (I'd bet dollars to donuts that they won't have enough for this mythical down payment saved up for by next summer, and that they are paying less than market rate rent. Hmm... donuts.)

If they had the $ for a lawyer, then they'd already have secured the down payment long ago.

 

[adjusterjack]

I inherited it.

I think the question:

How did the house pass to you?

Was meant to ask if the property was conveyed to you on a deed (with your name as grantee - new owner)) that was recorded in the county records.

If that was, by chance, not the purpose of the question, I ask it now.

Was the property conveyed to you on a deed (with your name as grantee - new owner) that was recorded in the county records?

Or is the deed still showing your uncle as owner?

Don't rely on memory, look it up.

 

[LdiJ]

I think the question:



Was meant to ask if the property was conveyed to you on a deed (with your name as grantee - new owner)) that was recorded in the county records.

If that was, by chance, not the purpose of the question, I ask it now.

Was the property conveyed to you on a deed (with your name as grantee - new owner) that was recorded in the county records?

Or is the deed still showing your uncle as owner?

Don't rely on memory, look it up.

That was basically the meaning. However, I also wanted to know the technical details of how it passed to him as well if it has already been deeded to him.

 

[Taxing Matters]

What is the name of your state? California
“Zillow says the house is worth $449,000. If you’re willing to pay that much I will wait for you to save up for a down payment and sell it to you.”

I'm of the view that unless the tenants have more than just that e-mail to back up their claim to a sales contract they don't have what is required to make a contract enforceable. Notably, if the tenants did not provide to your uncle an unqualified acceptance of the offer then there would not yet be any contract because there is no mutual assent. In that case you may be able rescind the offer now. As zddoodah said it lacks many of the details that one would expect in a contract to sell real estate.

I suggest you see a real estate or contract attorney ASAP. If there has not been a written acceptance of the offer then you'd want to rescind the offer before the tenants get wise and provide a writing in which they accept your uncle's proposal. You'll also want an opinion from the lawyer regarding how likely it is that a court would hold that there is an enforceable contract.

I suspect the tenants will discover they didn't do enough to nail down an enforceable contract for the purchase of real estate. When it comes to significant contracts one really should see an attorney to ensure that there won't be any problems with the deal. It seems pretty clear the tenants did not do that, a failure they may come to regret later.