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seller backs out of agreement after buyer pays back property taxes

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ArtIII

New member
What is the name of your state?california
my mother entered a verbal agreement to purchase a piece of property that the property taxes were delinquint around 12,300 dollars and was close to being put up for auction and after paying the back taxes the seller told my mom that he was backing out of their agreement and selling to someone else and if she didnt give him another 5,000 dollars that she wouldnt get any of her money back unfortunately they didnt have any of this in writing is there anything that can be done about this
 


Just Blue

Senior Member
What is the name of your state?california
my mother entered a verbal agreement to purchase a piece of property that the property taxes were delinquint around 12,300 dollars and was close to being put up for auction and after paying the back taxes the seller told my mom that he was backing out of their agreement and selling to someone else and if she didnt give him another 5,000 dollars that she wouldnt get any of her money back unfortunately they didnt have any of this in writing is there anything that can be done about this
No. There isn't much she can do. Real Estate agreements must be by contract. Hopefully she was smart enough to NOT give the 5 k.

Did you have an actual question?
 

Litigator22

Active Member
What is the name of your state?california
my mother entered a verbal agreement to purchase a piece of property that the property taxes were delinquint around 12,300 dollars and was close to being put up for auction and after paying the back taxes the seller told my mom that he was backing out of their agreement and selling to someone else and if she didnt give him another 5,000 dollars that she wouldnt get any of her money back unfortunately they didnt have any of this in writing is there anything that can be done about this
Please ignore the naysayer and have your mother confer with a knowledgeable attorney that can assess the particulars. She just may be able to avoid the impact of the statute of frauds * requiring that the agreement to be in writing and signed by the owner. The $12.3K could readily be argued as the agreed down payment and sufficient corroborating evidence to avoid the application of the statute. .

But she needs to act promptly to prevent a third party from purchasing the property and securing a superior title. Meaning, like filing an action for a declaratory judgment asking that the oral agreement be enforced and recording a Lis Pendens.

[*] Here please note that the laws mandating that agreements for the sale of land must be in writing in order to be enforceable are designed to protect owners from unsupported falsified and fraudulent verbal claims. (Thus the name: Statute of Frauds).

However, in instances where there is substantial independent evidence tending to corroborate an oral agreement, some courts have enforced it reasoning that the protection afforded by the statute doesn't apply. That is, that the corroborating evidence precludes any finding of fraud or any injustice intended or perpetrated by the purported buyer.

There is of course always difficulty in proving the contents of oral communications. Particularly where there is a dispute as to the contents. And in this instance there would need to be detailed findings of the essential term and conditions of the sale, as the court cannot infer or create them.

If it weren't for her payment of the delinquent taxes and never having taken possession of the property she wouldn't have a ghost of a chance. But she's entitled to be compensated for the $12.3K, whether it is applied as a down payment or reimbursed in cash.

It's no slam-dunk, but it does have psychological appeal. And a demand on the jerk that he either honor their deal an close on it or cough up the $12.3K - which he likely doesn't have - might bring him around.

Keep us posted please.
 

Taxing Matters

Overtaxed Member
What is the name of your state?california
unfortunately they didnt have any of this in writing is there anything that can be done about this
She may try suing the seller for a refund of what was paid or suing for specific performance, which means the court would compel the seller to go through with the sale. The problem here is that she has to prove there was a contract and that the seller breached it and since the contract was not in writing that makes it much harder to do. But if she can provide something convincing to the court of what their deal was, she might win. She might also be able to succeed in raising what are known as quasi contractual remedies to address the unfairness of this situation.

The seller might try defending on the contract claim with the statute of frauds, which is a law that says that certain kinds of contracts need to be in writing to enforceable. Contracts involving land are one of those contracts. However, a lot of people misunderstand the statute of frauds and think that if you don't have a written agreement for the transfer of property you are completely out of luck regardless of the circumstances. And that's not the case. Many states, including CA, allow an exception where a verbal contract involving land will be enforced where the party seeking enforcement has made full or part performance of the contract. In other words, where the party who is suing has done his/her part of the deal, he or she may still be able to recover even though there was no written contract.

She ought to at least talk to a lawyer about this.
 

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