Legal Question in Real Estate Law in California

oral agreements

after my 1yr lease option was up i was unable to get financing for my home.I told my ''landlord''this and she told me i had almost $2000.00 into the house as far as she was concerned the house was mine. I thanked her and expressed my relief and have continued to pay the original agreed monthly payment.She now wants to sell the house from under me since the market went up. Can i enforce this oral agreement since I have someone who witnessed this conversation as it was on my speakerphone?


Asked on 5/08/05, 8:23 am

2 Answers from Attorneys

Donald Holben Donald R. Holben & Associates, APC

Re: oral agreements

Real estate transactions must typically be in writing, however, circumstances may allow you to proceed with information you have. Would need to see all docs re rent to own agreement, etc. Call if you wish.

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Answered on 5/09/05, 2:19 pm
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: oral agreements

Oral agreements for transfers of interests in real property aren't ordinarily enforceable. The courts have fashioned a few exceptions where part performance has occurred, where there has been substantial and reasonable "detrimental reliance" on an oral promise, or where the existence and principal terms of the oral agreement can be shown by some other writings.

In your case, the contract terms could perhaps be shown from your option contract; then the only remaining item of proof is whether you exercised the option in a permissible way.

Based on the limited information given, I think your chance of prevailing in court is less than 50-50, but better than zero. Perhaps there is something in the circumstances (the lease-option agreement, for example) that would improve your chances.

It is also possible that the threat of a suit would induce your landlady to keep her oral promise, so perhaps some tough negotiations would be a suitable prelude to an actual suit.

You should have an experienced real-estate lawyer look at your situation at an early stage.

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Answered on 5/08/05, 6:21 pm


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