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    vwine56's Avatar
    vwine56 Posts: 2, Reputation: 1
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    #1

    Nov 19, 2009, 01:32 PM
    Verbal Contract
    I live in Ohio. My brother and myself have a verbal contract that he would hold a loan on some property for me and my husband for 10 years. I have a land contract on paper but it is not recorded at the courthouse because his loan officer told them they did not like it when there customers did that.
    I have made payment timely each month and have been paying the property taxes on the property(the taxes were late one time).
    My brother is now mad at me and said he will not hold the loan for 10 years now. Mind you it has been almost 2 years since the loan went through. He said if I do not assume the loan asap he will, without further notice sell the property.
    I have paid all payments with checks.
    What are my legal rights? Is a verbal contract binding? Can he sell the land and can he make me get assume the loan before the 10 years are up?
    Please I am desperate and a nervous wreck over this.
    tickle's Avatar
    tickle Posts: 23,801, Reputation: 2674
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    #2

    Nov 19, 2009, 01:54 PM

    This is from 'online lawyer source' website and explains your predicment with a verbal contract. You should read through this and then visit a contract lawyer, as it states and he will explain your rights:

    Verbal Contract Information

    One of the most complicated problems that attorneys in contract law deal with is the verbal contract. Movie mogul Samuel Goldwyn is reported to have once said, "Verbal contracts aren''t worth the paper they''re printed on." Although they are notoriously difficult to regulate, state and federal laws regarding verbal contracts do exist, and can help to ensure the enforcement of a verbal contract.

    If you are involved in a dispute over a verbal contract, you need to ensure that your legal rights are protected. Please contact us today for a free consultation with an experienced contract lawyer who can help you understand your legal rights and options.

    Three Elements of a Verbal Contract

    In order to be considered valid, a verbal contract must contain three elements: offer, acceptance, and consideration.

    Offer: The person making the offer in a verbal contract must communicate their intent to enter into a contract. A verbal contract is not considered valid if all parties do not agree to the terms of the offer. Also, verbal contracts are only valid for a specified period and not indefinitely.

    Acceptance: A verbal contract is not valid until the offer is accepted. The acceptance of a verbal contract occurs when the person to whom the contract is offered voluntarily indicates agreement to its terms and conditions.

    Consideration: In addition to an offer and acceptance, verbal contracts must contain consideration. This means that each side must give the other something of value for the agreement to be binding. In most verbal contracts, this is an exchange of money, such as a down payment. However, in some cases, it is not money but a promise that is exchanged.

    Verbal Contract Law

    Verbal contracts are a convenient and commonly used form of agreement between two parties. However, the main problem with a verbal contract is that if any problems should arise and there were no witnesses to the agreement, the case is reduced to one party''s word against another''s. Even if verbal contract law is followed, a verbal contract is often easily contested.

    The best way to ensure that your contract will be binding is to consult with a legal professional who can help you understand the law and determine your options. If you are involved in a dispute over a verbal contract, a qualified contract lawyer can help you maximize your legal rights and interests
    Lowtax4eva's Avatar
    Lowtax4eva Posts: 2,467, Reputation: 190
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    #3

    Nov 19, 2009, 02:50 PM

    This was a question from 2006... also I've always heard any contract regarding real estate must be in writing...
    tickle's Avatar
    tickle Posts: 23,801, Reputation: 2674
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    #4

    Nov 19, 2009, 03:46 PM
    Quote Originally Posted by Lowtax4eva View Post
    This was a question from 2006... also I've always heard any contract regarding real estate must be in writing...
    What do you mean from 2006, it says today...

    Tick
    vwine56's Avatar
    vwine56 Posts: 2, Reputation: 1
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    #5

    Nov 19, 2009, 05:46 PM

    But, I paid all closing costs, payments and property taxes. I have canceled checks and the loan broker can verify that my brother got the loan for me on a 10 yr loan. It is just the loan is in his name. Is a verbal agreement between me and my brother binding?
    Fr_Chuck's Avatar
    Fr_Chuck Posts: 81,304, Reputation: 7692
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    #6

    Nov 19, 2009, 08:19 PM

    There is no such thing as a verbal real estate contract. Any real estate contract ( except rental) has to be in writing.

    If you have a written contract for deed ( there is no loan in a contract for deed) the person who owns the property may have a loan on it, but you are merely paying according to your written contract and they turn the deed over when you complete the contract

    So there is no "loan" being held for you, someone bought the property and gave you a contract for deed.

    How many years is that contract for deed for. ( it has to list the amount to be paid, and the years it is for)

    So you can make them honor the contract for deed.

    Most contract for deeds are not recorded, but if you feel he may try and sell the property, go record it, it does not effect any loan on the property.
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
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    #7

    Nov 19, 2009, 08:33 PM
    Quote Originally Posted by vwine56 View Post
    I have a land contract on paper but it is not recorded at the courthouse
    You have an agreement on paper that says you will pay x amount over 10 years at which time the property will be yours? If so, you are golden. A contract like this does NOT have to be recorded and, in fact, rarely is.

    So the first thing you need to do is file Lis Pendens against the prompt. This informs the Recorder of deeds that there is pending litigation involving the property and therefore they cannot convey clear title until its resolved. If your brother tries to sell the property, the buyer's title company will find the Lis Pendens and not guarantee clear title.

    You then tell your brother that you have a signed contract wherein you have 10 years to pay off this property. As long as you hold up your end of the contract, paying the payments on time, then he can't sell it.

    I would then try to find other financing so you can pay off the contract and get the property deeded to you.

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