Legal Question in Real Estate Law in Maryland

For the past four years my partner and I have been involved in a verbal arrangement to purchase a property, The property was in need of great repair, which we have been doing under the impression that we where eventually going to be able to purchase the property. Great deal of time, energy and money we have personally invested in the property. Just recently we found the couple we where dealing with where getting a divorce. We where informed the Divorce would not effect our arrangement. Now we are coming to find out after there divorce is final that the husband has been awarded the property and has decided to sell the property out from under us with no compensation.


Asked on 8/12/13, 7:33 am

2 Answers from Attorneys

Robert Sher Wagshal and Sher

You made a huge mistake investing time and money in the property without a written contract to purchase it, because verbal agreements to sell real estate are unenforceable. Even if you had made a written contract, you didn't own the property until you received a transfer deed, so it was risky to do what you did. If you have improved the property, you ought to have a claim against the owner for the value of your improvements, but you need to immediately file a suit and obtain a lien against the property known as a lis pendens. If the property hasn't yet transferred to a new owner, your lien will protect your interests and any purchaser will do so subject to your lien.

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Answered on 8/12/13, 11:51 am
Thomas Valkenet Young & Valkenet

You posted this on AVVO, too, and there are several good answers there. In short, you might have some rights if your deal is in writing (even if you have several pieces of paper), but it is not likely. You may even have rights to recoup any increase in value you gave to the owner through your efforts. You might even force some recompense by tying up the property in a court case and forcing a settlement. You may also have common law claims for fraud if you were, indeed, tricked into spending money on property you do not own.

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Answered on 8/13/13, 6:14 am


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