Legal Question in Real Estate Law in Ohio

I loaned a friend 35k to buy a home. I have a credit line of a 100k. I pulled the exact amount from my line of the credit to purchase the home. The cashier check says loan in the memo. We had a verbal agreement to make payments of $600 a month until she can pull out the equity to pay me back. She had a year to do so or deed the house to me. Unfortunately she made 2 payments. One for $500 and another for $350. The loan is not tied to the house. The first check she wrote rent in the memo, second check she wrote reimbursement. Do I have a chance of winning taking her to court. I understand there is no verbal contract in real estate. What can I do, please help.

Asked on 4/12/16, 7:05 pm

1 Answer from Attorneys

Jann Washington Jann C. Washington, Esq., LLC

While there is no verbal agreement for purchase of real estate (called the statute of frauds), it doesn't matter what the monies were loaned to the friend for since you didn't attach them to the property through a mortgage. This is simply a verbal loan agreement. If you win a judgment in court, then you can file a lien against her property to, at least, get your money back possibly if she sells it, or garnish her wages or attach her bank accounts to obtain a portion or all of your money back.

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Answered on 4/13/16, 2:01 am

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