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Sidnal · Sep 2, 2006, 02:12 PM

I'll try to be as brief as possible. My thanks in advance to all who take the time to understand this situation, and offer advice.
My mother (age 58) has deeded one acre of land to my sister. This acre is adjacent to my mothers' home in Texas. The purpose of this gift was to enable my sister and her husband to use the land as collateral for a down payment on a home to be built on the property. My sister and her husband did not have the financial ability to come up with the down payment themselves, or the financial discipline to save it up. The *verbal* agreement between them was if and when my sister and her husband decided to move from this rural area, they were to move the house (it's built on post supports, not slab) and give my mother back the property in its' original state, except for the water well (which my mother paid for) and fencing (which my mother paid for). My mother has also loaned them cash in excess of $20,000 and has no written repayment agreement (signed or not).

Relations between my mother and sister have degraded terribly, to the point where they are not speaking to each other at all, and if they do, its' horrible (name calling, finger pointing, screaming) I think both of them are at the point where their differences cannot be resolved anytime in the near future.
Which brings me to the situation I need help with. Sister and husband have moved away, and have put the property up for sale. This, from Moms' perspective is *the worst* possible thing that could happen, with this property being immediately next to Moms' house out in the country, the nearest other neighbor about 1/4 mile away. Mom will go so far as to buy the property from them, but refuses to pay one cent more than what is owed on the mortgage currently (about $67,000). The property is listed for about $120,000. Mom has talked to a lawyer, and nothing can be done to prohibit them from selling the property. Mom is angry, and is willing to use her considerable financial resources to deter any potential buyers. We have discussed things like fences (barbed wire, electric, wooden privacy with garish paint), using audible deterrents such as automatic scarecrows (BOOM), and simpler things such as stacking trash around the property on all three sides (which Mom owns). The point in this would be to discourage any interested buyers, and to hopefully eventually force Sister and Husband to sell the land and house back to Mom for what they owe on it, and allow Mom to clear it out and live out her years peacefully and privately on her land with no immediate neighbors.
My questions are concerning this: Can anyone out there think of any laws that would prohibit such actions? If not, are there perhaps some better ideas out there? As much as I wish it were not true, I really don't think that reconciliation between Mom and Sister is possible, at all in the foreseeable future. I'll be happy to answer any questions that anyone may have to gain a better understanding of this situation, we truly need some advice here.

Thanks!
Sidnal

Fr_Chuck · Sep 2, 2006, 02:33 PM

She should sue her for the value of the land as a breach of a verbal contract to deed the land back to her, and in addition sue her for the breach of contract for the loan of the other money.

While harder to prove and to win verbal agreements are inforceable.

And in the end, she could borrow the money and buy the land back.

Fresno-Nick · Sep 12, 2006, 10:30 PM

Couldn't you mom file a lean on the property which she loan money to your sister... and if your sister doesn't pay back the loan in a timely manner your mom can forclose on the property (easier said then done)... but again it was just verbal?. tough situation... I hope you find the answer soon.

Fresno-Nick · Sep 13, 2006, 10:47 PM

Hey foget what I wrote yesterday... I found out something abut liens on a property today from my atty... good luck to you.

ScottGem · Sep 14, 2006, 05:43 AM

Just saw this. I would NOT advise doing anything to discourage buyers. If your mom does, she could be sued by the daughter.

And without anything in writing, its going to be hard to win a court case to get the property back.

But one possibility does exist. How does one enter the property? Is there a public road that makes up one side of the 1 acre? Or is there an easement through your mom's property to get to it? If the latter, your mom may be able to close that easement and deny access across her private property to the daughter's. That would legally and effectively block any sale.

Sidnal · Sep 20, 2006, 02:38 PM

Ok, it's been a few weeks, and here's an update:

The property is still up for sale, and has sparked minimal interest. Mom has decided that she wants to reclaim the property badly enough that she will pay up to the full $120,000 that Sister is asking for the house. However, she knows approximately what is owed on the house ($67,000 give or take a grand), and she also is aware of the tax appraisal value (91,000). Obviously, she wants to pay as little as possible. If Sister knows that Mom is trying to buy the house, it seems very unlikely that any negotiation on price will happen.
Easement is not an issue here, as one boundary of the property faces a public road.
Mom has the cash available to make this purchase, no loan process, title search (it's been in the family for 3 generations), or surveying will be necessary.
Question:
1) How can she make an offer on the property without Sister having a clue to her identity? If anyone out there has ideas, please give specifics:) Is forming a "dummy" company the answer? What about trying to find a straw buyer? I realize the term "straw buyer" has negative associations, but we aren't trying to inflate the property value here, nor get anyone to sign any mortgages.

Bottom line: Mom wants her land back, and wants it as quick as possible. I'm very interested in making this happen for my mothers' mental well-being, she has enough problems with Dad on his deathbed.

Thanks again for your help!

ScottGem · Sep 20, 2006, 03:51 PM

The problem here, since this is residential property, is that interest from any corporate entity would probably be looked on with suspicion. What I would do, is enter into a contract with someone to purchase the property and then sell it to your mom for a 5% (or agreed upon) profit. I would make sure a lawyer draws up this contract so the buyer doesn't renege.

Dr D · Sep 21, 2006, 12:30 PM

If your mom is represented by a Realtor, that Realtor could write a purchase contract in his/her name and/or NOMINEE to be named later. For the protection of the Realtor and your mom, a clause stating that the NOMINEE must approve the contract terms within 24-48 hours of acceptance by the seller, should be put in. The NOMINEE device has been long used by Realtors representing out of town investors, or in the case of a married person buying a home when the spouse is out of town or otherwise not available to sign the initial purchase contract. I hope this helps.

Sidnal · Dec 16, 2006, 06:27 AM

I'm happy to report that the situation has been resolved, we called upon the help of a close friend of in-laws to be the dummy buyer. With a little negotiation, we got the house back for $105,000 (still too much, IMO) but at least mom is happy. Thanks for all your advice guys!