Verbal Agreements

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A married couple made a verbal agreement to buy a house I'm selling.
They couldn't buy immediately so they signed a rental contract and moved in.
They couldn't afford the $950 a month I'd been charging so I reduced the rent to $700, just happy the property was sold.
Because of the reduced rent we agreed they would pay for any repairs or improvements with the costs being deducted from the purchase price.
After living there a year they now have decided not to buy the house and are demanding to be repaid immediately for improvements they've done. I explained I can't repay them now but would gladly reimburse them when the house sells,
as we originally agreed. They've also starting paying half rent to repay themselves.
Is the verbal agreement binding?

Comments(5)

  • NancyChadwick2nd February, 2004

    I suggest you consult a real estate attorney. My understanding is that any agreements relating to real estate must be writing and signed in order to be enforceable, but talk to an attorney fast. You want to get those people out of your property ASAP.

  • GWmson5th February, 2004

    You discount them $200 a month for rent and then they want back money for repairs they did? Sounds like you gave them a $200 spending allowance to do what they wanted to monthly.

    Demand rent in full or give them 10 notice to vacate. Do not accept any more partial payments, the more partial payments you accept, the more credibility their side of the story will have.

    If you never promised them a refund on repairs if they didnt buy the house then there is no reason to put up with them, make a stand NOW. I would go over there right now, today, with a camcorder and record all the repairs they say they have done and record the actual condition of the house right now, prior to starting the eviction process.

    The longer you let them stay the more problems it will cause you.

    G'luck, Start the process, see an attorney if you get stuck.
    G

  • makingaliving5th February, 2004

    I read somewhere that if you don't have the stomach to evict a pregnant woman
    with two children whose husband abandoned her, then you really shouldn't be a landlord. Kinda rough, but you get the picture. Get them out. No more deals. They are taking advantage of you. Why should you be obligated any further with people whose word means nothing?
    And for the future..."verbal agreements are not worth the paper they are written on."Get it in writing![ Edited by makingaliving on Date 02/05/2004 ]

  • jwfoster45th February, 2004

    Oral agreements for the sale of land are not valid.

    Federal "Statute of Frauds" -
    "7. No action shall be brought (d) upon any contract or sale of land or any interest therein; unless the promise, agreement or contract upon which the action is brought, or some memorandum or note thereof, is in writing, signed by the persons sought to be charged therewith or by some other person thereunto by him lawfully authorized."

    The state of Washington put the federal rule in its own statute: RCWA 64.04.010

    Sorry

  • JohnMerchant5th February, 2004

    A statute of frauds can be found in all 50 states. to effect NO oral agreement worth anything and any & all RE Agreements must be in writing, and signed...and in some states also notary acknowledged.

    This was old English Common Law and did not originate with U.S. fed law.

    Very little Fed legislation in RE, as RE is basically state by state...and does not depend on whims of Congress.

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