Legal Question in Real Estate Law in California

In May 2012 I received a call from my brother who lives in Ohio and has income property in California {A Duplex that he rents out} He called to ask if I could pay his property taxes on the duplex which were in default and promised to repay me the $3000 in 6 months. I live in California the same town that his duplex is in. I agreed to loan him the money {nothing in writing} the next day I paid his taxes in full. He has not repaid one cent of loan . Now He has listed the duplex for sale . Do I have any legal recourse to recover the $3,000.00 I still have the receipt from the assessors office and a letter from him acknowledging the loan .


Asked on 3/31/14, 2:39 pm

1 Answer from Attorneys
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

First, there is a limited number of kinds of contracts that are required to be in writing by the so-called Statute of Frauds. This is not one of them; an oral contract of this kind is enforceable.

Next thought concerns the Statute of Limitations, which for a lawsuit based on an oral contract is two years, and the two years would begin to run when the loan first became overdue. So, you're still OK there, too.

Finally, the letter acknowledging the loan very possibly would take the agreement out of the oral category for purposes of both statutes, where a written conformation of an oral contract may make the loan enforceable just as though it had been in writing in the first place. I assume you'll want to bring any suit in Small Claims Court, and I suggest getting one of the paperback self-help law books discussing California small-claims procedures (check out Nolo Press, for example).

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Answered on 3/31/14, 4:05 pm


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