Can I be sued for breach of oral agreement?

[TL Creel]

Hi, my husband was killed in an accident on the job about 2 years ago. I recently got my settlements and I am very wealthy now. I recently gave my sister and her family my old house. I bought my brother and his family a home here in the same state of Texas where I reside. I moved my brother down here cause our dad was ill and I wanted the family together. The original agreements on the houses I gifted was...well my brother and sister would lease to own the houses from me. I found out that I cannot do that because of tax purposes and I would have to charge them intrest on the houses if I did the lease to own thing. For several reasons I cannot do as planned before. I have spent a lot of money on other things as well and...well giving them the houses would really be a loss for me and my children. I feel kind of bad cause I advised my brother to let his home he lived in before go in his bankruptcy. Anyways, my brother and his wife aren't speaking to me anymore cause I have made them sign a lease. In the lease I have asked that they pay all property taxes, all upkeep and homeowners insurence as well as renters. I can't understand why they are so mad. Their rent is a couple of hundred dollars less than their house payment was. My brother is a good person and he works hard for his family. Should I just take a lose and give them the houses? If I decided to sale the houses can they sue me for breach of oral agreement? Can they sue me for breach of oral agreement for taking the houses back? I know they would of never moved knowing what they do now...but geezz I can't save everyone and I have to thank about the future of my children and myself.

 

[curtisd]

say what?

your answer is to reread your question but switch places with your brother and sister- you may realise you "breached" being a sister,if not you may want to start spelling your last name with a "u" in it.

 

[TL Creel]

Reply to Curtisd

You don't understand. Because of tax puposes I can't give them the houses. I can't lease to own the houses to them because I would have to charge them intrest. My brother has a bankruptcy on his credit so the intrest would have to be high for him because of his credit. These are really nice houses. Nicer than they could ever afford otherwise. I am really doing them a favor. I remember I use to pay much higher rent than that before I had money for a house about 6 or 7 times less as nice. I'm not a bank and I can't take care of everyone. Besides, my financial advisor and all my people say that I am being a lot more generious than they would be. All my friends commend me on my gernerosity. Why would anyone want to go back to just a simple small house that they aren't going to own for 30years when they can lease a big nice home for A LOT less AND save a money doing it.

Teresa

 

[JETX]

Ignore that idiot, Curtisd. He has no idea!!

Earlier, the Forum was not working properly and I had to send my response to you directly.

However, now that it IS working, I will summarize my response.

You CANNOT be held liable for any verbal agreements that you might have made regarding the home sale or transfer. These 'verbal' agreements are unenforcable since they were NOT in writing as required by the TX Business & Commerce Code. It requires that ALL agreements pertaining to real property MUST be in writing to be enforcable.

Further, in my private email I offered a possible solution to your dilemma. As I see it, due to tax reasons you must rent your house to your brother and his family and are precluded from just giving it to them. Additionally, you want to protect your investment and make sure that they abide by their end of the 'deal'. So, what I propose is:
Have them enter into a 'standard' lease to rent the property annually. Charge them a reasonable rent and require that they maintain the property. You be responsible for all the 'normal' landlord expenses (major repairs, taxes, insurance, etc.). Then, at the end of each lease, do an inspection of the property to make sure it is being properly maintained. If so, then 'reward' them with a 'rebate' of some or all of their rent (to the maximum of $10,000 per year exempt 'gift tax'). They can then save that money until they are able to accumulate sufficient funds to purchase their own home.

Result: You get the tax deduction. You get a protected (maintained) investment property with tax write-offs. They get a 'nest egg' to use toward a purchase in the future.

 

[TL Creel]

Reply to last post

Give them 10,000 dollars a year!!! I'm not a bank and I figure by the very resonable almost ridiculous amount of rent I am charging them that that is a gift enough. My advisor says that they should have to pay taxes on the property and all the upkeep and all the insurance. My brother and sister say they can't afford all these extras but my advisor and my friends tell my that my present offer is more than generous.
Teresa

 

[JETX]

I never said to give them $10,000 a year. I said that you could give them a MAXIMUM of $10,000 a year and it would be exempt from taxes. Lets say you charged them $500 per month rent. At the end of the year, that would be $6000.00 'income', from which you can deduct your expenses, taxes, interest for your 'deductions'. You could then 'refund' $1,000, $2,000 or whatever (up to $10k) to them to try to make up for your lying to them and to allow them something to build on for their home (remember, the one you promised them??).

Sorry. I guess I 'misread' your concerns. I assumed from your post that you were concerned about your brother and his family and that you found out that you wouldn't be able to do as you promised due to reasons out of your control. We now find out that isn't the case... you just didn't want to part with your money that you promised. So, if you can live with yourself and kick your brother and his family out because you let your mouth overload your bankbook, go ahead. If you are seeking a workable solution that will resolve the problem you brought to this forum, I offered one.

So, let me just focus on your 'real' concern....
No, you can lie to your brother, have him lose his home to move down here at YOUR request so he can be with your father while he is/was sick, and guess what.... he can't sue you for your breaching your promise to him. Don't let it worry your little head at all about it.... just remember, you can keep all your money... and you can still lose your family!

Have a real happy day...

 

[TL Creel]

Reply to Steve!!

I didn't lie! I just didn't realize how much money I had spent and when I realized it I got scared! I have a son attending a very private and prestigous college and a daughter who is fixing to get married. What about US!!! My brother is a big boy! I didn't twist his arm!!

to you too

Teresa

 

[JETX]

Your own words:
"I bought my brother and his family a home here in the same state of Texas where I reside. I moved my brother down here cause our dad was ill and I wanted the family together."

You BOUGHT him and his family a house and moved them down here.

"The original agreements on the houses I gifted was...well my brother and sister would lease to own the houses from me."

This 'lease' is quite a bit different from your first statement that you BOUGHT the 'home' for them. Now you bought the home to LEASE it to them.

"I found out that I cannot do that because of tax purposes and I would have to charge them intrest on the houses if I did the lease to own thing. For several reasons I cannot do as planned before. I have spent a lot of money on other things as well and...well giving them the houses would really be a loss for me and my children."

You found out that this PROMISE was going to cost you some money and be a 'loss' for you and your children. Gee, I thought that 'loss' was understood when you promised to BUY someone a home.

In your latest response, you now alter your story a bit with "I didn't lie! I just didn't realize how much money I had spent and when I realized it I got scared!"

Here in Texas, we have a saying for what you did... it is "You let your alligator mouth overload your hummingbird ass". You promised first in a grandiose offer to be the 'Grande Dame', then found out what your promise was REALLY going to cost. And rather than accept YOUR responsibility, you have decided "Woe is me, I can't do what I promised, but it isn't MY fault".
Sorry, but this was "Your promise, your lie, your fault". Now, you either have to be a person of integrity and stand by YOUR word (even if it inconviences you), or the law will protect you if you weasel out of your VERBAL promise.

I hope that you either decide to be a mature, RESPONSIBLE adult who can be trusted, or you can be where you are now.... YOUR CHOICE.

 

[curtisd]

whose the idiot?

re:halket.no need to apoligize

 

[TL Creel]

Please!!!

I did not come to this forum to get bombarded!!! I am still grieving over the loss of my husband. My boyfriend knows my pain, my advisor knows my pain. I mean gosh... I bought everyone a new vehicle when I got my millions and hey! I did it cause I wanted to. WHAT ELSE DO THEY WANT! At least they don't have a car payment. And, should I really take the food out of our own mouths to do the right thing!!!

 

[JETX]

You are not getting 'bombarded', except with honesty.

You ask, "WHAT ELSE DO THEY WANT!"
Apparently, they only want what you promised. Is that so unreasonable???

Certainly nobody here is unsympathetic to your loss, but that is NOT the issue. In fact, it took you FOUR posts to now 'play the sympathy card'!!

Further, you can't even get your own story straight. In your first post, you said, "I am very wealthy now". Now, we are down to your having to take food from your childrens mouth's. Which is it??

Bottom line... you made promises that people relied on (even to the extent of losing their home!). You came to this forum to ask if you could renege on your promises without any legal repercussions. Unfortunately for the people who relied on your honesty, the law does protect you in this case. As I said before, it is now time for you to decide whether you are going to be a mature, responsible adult who stands by her word, or whether you are going to be something much less. It makes no difference whatsoever to me (or others here I assume) which course you take. You can be self-less or selfish. Your choice.

Have a real happy day....

 

[radeck]

If you ask me, these 2 statements don't quite go together, either!

"I am still grieving over the loss of my husband. My boyfriend knows my pain"

 

[curtisd]

ivory aria

so teresa,what do you do when you're not writing soaps on the internet?or do you have a bet on how many posts you get before someone catches on?

 

[TL Creel]

It's hard for me!

Yes, my life does seem like a soap opera and you don't know the half. I don't know...I just think people should be more understanding. I mean I had really good intentions and now my advisor is telling me I can't do as I planned. Would you believe...I bought my parents a home too ( dad died in July). Well, my mother has my mentally disabled brother living with her. My advisor has me charging them 350 a month for rent (mom gets 800 a month from social security and brother I think 500 from ssi. My mothers med bill is 1000 dollars a month... I am paying for my mom to get her teeth fixed and my advisor tells me to go up on her rent a tad to show that she is paying her way? It's a mess. My advisor keeps saying (about my family) "who do these people think they are"? I am new at being wealthy. My advisor tells me, "Your family is trying to take the food from your kids mouth". You see....? I don't know what or who to trust or believe. For some reason I thought you guys at the forum would have the same opinions as my advisor, and when you guys didn't it...well, I'm confused to say the least. And my boyfriend seems to have the same opinion as my advisor and so do my close friends. No, my problems are very real.

 

[embraced2000]

puh----leaaseeeeeeeee

where's jerry springer? he's really here, isnt' he???? or maybe it's just his writers practicing scriptwriting for his shows.

if this is real, and you are looking for justification in your actions, thresea, i don't think you will find it here.

do what you know is right.