Legal Question in Landlord & Tenant Law in California
Is my promise a legally binding verbal contract?
Ten years ago I bought a house as a rental unit. I
promised a disabled friend that he could live there and I
would never increase the rent because he is on a
limited income for full disability. We signed a rental
agreement that did NOT state this. Last year I updated
the rental contract, again NOT reflecting my promise of
years ago but keeping the rent the same. Taxes,
insurance, water, sewer, trash have increased to the
point where want to increase his rent. Is my promise of
ten years ago in any way a legally binding verbal
agreement? I'll deal with the integrity issues of my
promise with my priest. Thank you.
1 Answer from Attorneys
Re: Is my promise a legally binding verbal contract?
Generally, in California the statute of frauds requires any contract regarding terms that exceed one year, especially in regards to real estate, to be in writing. Therefore, legally you would not be bound. Morally, maybe.
I think if you talk to your friend, tell him the situation regarding your expenses, and that you have fulfilled 10 years of no rent increases (have him check comparable rents), he would agree to a rent increase. His only option is to move if he does not want to agree.
Also, your new lease must not be a fixed term lease or you cannot raise the rent