Is there a law in the State of Pennsylvania that says verbal agreements are binding? If so, where can I find it.

Since you posted in the Real Estate Law forum I assume that you are referring to a real estate-related verbal agreement.

The Statute of Frauds says that verbal agreements concerning the lease of real estate for more than one year, or the sale of real estate in general, are not enforceable. That means that a verbal agreement for a lease for a time of less than one year is enforceable. A verbal agreement for the sale of real estate is not enforceable.

Tell us more about your situation and we'll tell you what applies.

My wife's mother passed away and left a house to her. The house had a lien on it for $50,000+. Me and my wife's credit was too bad to obtain a mortgage to repair the house to live in. My wife didn't want to sell it, however she had many offers to sell it. She turned them all down. My cousin had asked to buy the house, at first we agreed (me and my wife). Then after the closing company came back and said that there was a lien on the house for the previous mentioned amount my cousin said that he wasn't interested. My wife and I approached him with a proposition, we add him on the deed, he repairs the house and rents it back to us for $800/month until he recoups the money he put into the house and once that occurs we then take out a mortgage and give him a little more for his troubles. After speaking to the lien holder, they agreed that if my cousin doesn't try to sell the house to any other person they would not pursue their money. That was two years ago. Now, two months ago, he had someone call the mortgage company and try to settle the lien, however, the mortgage company said that because their was no executive of estate on file and also he didn't know my wife's SS# that they can't discuss the account with him. The mortgage company's lawyer spoke to my wife and told her that the only person that should be on the deed is her. And, that whoever wrote up the deed and whoever recorded the deed should have been looking for a letter of settlement from them (mortgage company). My wife is waiting on the mortgage company to fax her the notes on the account (we sent them the executrix of estate papers)because as previously mentioned my cousin was supposed to fix the house up and rent it back to us. What can we do now. OH YEA! The lawyer said that the notes on the account does show that my wife had to give permission to the mortgage company for my cousin to talk to them. And I believe that the mortgage company notated the account as such a way that shows that my cousin was supposed to fix the house and rent it back to us.

You have to get a lawyer. Now. This situation sounds very messy and I doubt that you'll be able to clear it up without a lawyer to represent you and your wife. You can't rely on the mortgage company's lawyer to represent you and you certainly shouldn't rely on your cousin. Get a lawyer immediately to protect your wife's ownership interest before someone takes it away.

If you added them to the deed, they basically own part of the house if they pay you or not.

This was handled very poorly, esp not getting anything in writing.

Plus if this is still in the estate that makes it harder since probate laws have to be followed.

Time for a good attorney and you may have basically gave away part ownership in the house and no way to get any money for it.

Plus, by transferring ownership of the house you may have invoked the due on sale clause of the mortgage. I think that's what the mortgage company was trying to tell you. That means that they can require that you pay the balance in full or foreclose.