Legal Question in Credit and Debt Law in California

We loaned a real estate friend money to buy a home. She told us once the home sold she would pay us our money plus a 10% interest. We did this several times and each time the home sold she paid us our money plus the 10%. This last home we loaned her money for was the most; $100,000. After two years she finally sold the home at a loss. She now is only willing to pay us $17,000. That is what she said she got out of the home. All of our arrangements have been verbal. We kept all records of the money (in personal checks) we gave to her; but we have no written contract. She is now changing things saying we were investors and partners and that we both took risks. Which is not the case the original agreement we had was that she would pay this loan off plus 10% after she sold the homes. Which is exactly what happened every time before this. We need legal advice. What should we do? Will we be able to get our money back? We need real advice. Thanks


Asked on 11/14/09, 8:05 pm

1 Answer from Attorneys
Robert Mccoy Law Office Of Robert McCoy

If you can prove the terms of your verbal contract, then your "friend" can be held liable to those terms. Verbal contracts are just as valid and enforceable as written ones (unless specifically stated otherwise in a statute). The problem with verbal contracts, however, is proving the terms. You would have to prove your terms by means other than a written document, like prior course of dealing, records you kept, and witness testimony.

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Answered on 11/19/09, 8:17 pm


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