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statute of frauds?

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biffie

Guest
My corporation has a valid P&S for a parcel of land. Corp assigned P&S for $12K. Closing was scheduled and attended by all parties except one seller (disgruntled ex husband). I offered to sell my interest in assignment to a third party. I did not immediately accept because assignor had his lawyer trying to force the original closing. I verbally told thirs party that it looked like I would have to take his offer of 50c on a dollar. No contract for this was offered or signed by anyone. Third party then lent me $500 by personal check made out to me personally. I deposited the check Friday at noon and 15 minutes later got a message from the assignor that the original deal was on and will close Thurs. I called third party and told him the news and told him I didn't need his deal anymore. He got angry and demanded that I pay him his $500 back and another $500 (which I would have done). We agreed to meet later, at which time he demanded that I repay the $500 plus $1100. I balked. He threatened lawyer/court.
I said the deal was not enforceable because there was no written contract. He said his lawyer told him he had a case and would sue for the full $6000, try to get an ex parte order the day before the closing and try to scare the closing lawyer in to witholding a portion of my proceeds at the closing. Do they have a case and what should I do?
 


T

Tracey

Guest
No. Contracts conveying an interest in real estate must be in writing & notarized to be enforceable. Third party is entitled to his $500 back, plus interest if you had the money for a significant time (month or more). Were the loan terms in writing? Did it specify that 3 was giving you the money to act as his agent to buy the land? Unless he's got something in writing, 3 is SOL. Send a check for $500, certified, return receipt. Include a letter saying 'Thanks for the loan but I don't need it anymore.'

Ignore his lawyer's posturing. You might consider hiring a real estate attorney to write the loan repayment letter. It will be cheaper than the extra $500 you were going to pay him. (By the way, 100% interest over 4 days is usurous & probably criminal loansharking.) Take all your papers to the attorney & tell her the whole story.

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This is not legal advice and you are not my client. Double check everything with your own attorney and your state's laws.
 

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