Verbal contract??

[jahirsch]

What is the name of your state?Florida

Ok, this is a pretty odd case. I am currently a licensed Florida Realtor, and was asked a question that far surpassed my area of expertise. A friend of mine gave me a call and told me this story. About 13 years ago, he contracted with a man to purchase some property, the amount was discussed and it was agreed that the basis of the agreement was going to be along a "rent to own" type contract. My friend being a strong believer in the fact that your word is your bond, never went about getting anything put in writing. Well about 2 years ago, the "seller" asked my friend to meet him down at a local Realtors office to finalize things and to get an actual written contract. My friend and the seller met at the Realtors office, and the terms that had been agreed to earlier were reiterated, and the contract was left for the Realtor to draw up. Well, my friend never heard back from the Realtor, and just assumed that he had forgotten about it. Well a month ago, my friend receives a letter in the mail stating that the property had been quit claimed to a relative and that my friend and his family would have to vacate the premesis. What recourse, if any does he have??

 

[BradleyS]

How did the current occupants gain access (move in) to the property?

Being a RE Agent you should be aware of the "Statute of Frauds." I am sure that your state has legislation requiring that "Real Estate agreements to be enforceable, have to be in writing and signed by all parties."

The current occupants should of hired a lawyer or RE Agent to represent them in the purchase or contract for deed.

Unless the occupants have any documentation (i.e. real estate contract, contract for deed, or affidavit of equitable interest) I wouldn't be surprised to see the sherriff at the front door very soon, removing them from the property.

 

[jahirsch]

thought so....

In Florida, the law clearly states that a contract for real estate must be in writing to be enforceable. However, in the same book, it also states that depending on how long the current occupant has had possession and what improvements were made, a verbal may suffice. My friend has been in possession of the property for the past 13 years and has paid the taxes, has replaced the roof, replaced the water pump and many other repairs and/or improvements to the home. The only thing he has in writing are the receipts that he makes his payments with, which he clearly marks "house payment # 25, 26,27 etc. Just wondering if there was anything he could do, it just seems so unfair to me. The realtor who was supposed to draw up the papers claims he was never paid, therefore he was never hired. It just seems to me that since so many people know about this arrangement that my friend may have some type of recourse.

 

[BradleyS]

Well I would be talking to an attorney.

Maybe an affidavit of equitable interest could be used in this case......

Let's see what SJ and HG might have to say........

 

[jahirsch]

affidavit

What specifically is an affidavit of equitable interest?? Im not familiar with that term.

 

[HomeGuru]

What is the name of your state?Florida

Ok, this is a pretty odd case. I am currently a licensed Florida Realtor, and was asked a question that far surpassed my area of expertise. A friend of mine gave me a call and told me this story. About 13 years ago, he contracted with a man to purchase some property, the amount was discussed and it was agreed that the basis of the agreement was going to be along a "rent to own" type contract. My friend being a strong believer in the fact that your word is your bond, never went about getting anything put in writing. Well about 2 years ago, the "seller" asked my friend to meet him down at a local Realtors office to finalize things and to get an actual written contract. My friend and the seller met at the Realtors office, and the terms that had been agreed to earlier were reiterated, and the contract was left for the Realtor to draw up. Well, my friend never heard back from the Realtor, and just assumed that he had forgotten about it. Well a month ago, my friend receives a letter in the mail stating that the property had been quit claimed to a relative and that my friend and his family would have to vacate the premesis. What recourse, if any does he have??

**A: if there was nothing in writing signed by both the Buyer and Seller, the Buyer is merely a tenant. Search Florida statutes of frauds.

 

[BradleyS]

Well, there you have it from HomeGuru.

An affidavit of equitable interest is a document that is record at the register of deeds that give the current occupant "equitable interest" in the property. This document might have protected your friend from any financial loss.

This document is available at most closing offices, attorney's office, even some RE Offices.