Equity Obligation

[mlangfield]

What is the name of your state (only U.S. law)? California

This is a rather odd situation I'm in. About six years ago I bought a house from my brother and his wife. They sold it to me for a discounted price so I could afford it with a verbal agreement that when/if I ever sold it, I would pay back the difference between what it they sold it to me for and the then appraised value. Since that time the real estate market crashed and the house is only worth what I bought it for.

Now comes the issue. My sister-in-law cheated on my brother and they are in the midst of an ugly separation/divorce. She has told my brother that I owe her money for the house. For one, there is no equity currently in the house due to the downturn in the market and most importantly, there is no documentaton of the agreement we discussed (only a verbal dissussion). I have a feeling she is going to come after me legally. Does she have any case? I could always just sell the house and since there is no equity it would be a shut case, but I don't want to do that. Any feedback is appreciate.

 

[OHRoadwarrior]

There is nothing she can come after you for now, as the terms of the verbal agreement have not materialized.

 

[mlangfield]

You stated there is nothing she can come after "for now". Does this mean you think she can legally at another time? For example, if the market comes back and the house has equity?