Legal Question in Real Estate Law in California

joint owners with verbal contract

My parents and I ageed to buy a house together. because of the nature of the loan the mortgage and loan was taken out by them and the property is in thier name.I have lived at the property and made payments to them for aproximatly six years as well as performed all the required maintence..I encountered some financial problems and was unable to keep up with our intial verbal agreement.Our verbal agreement has been witnessed several times by several people ,now however I find myself being served a unlawful detainer summons and being evicted as a tentant. What is my legal right to ownership..understanding that California law requires real property ownership be in writing..can they do this to me or do I have recourse.


Asked on 4/28/02, 9:05 pm

3 Answers from Attorneys

Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: joint owners with verbal contract

The previous answers were, in my opinion, overly pessimistic and unsympathetic.

You seem to have kept up your end of the bargain reasonably well for a long period of time, and if you have other facts that support your being the 'good guy' and your parents being the 'evil villain' in this matter, you may have a case.

The Statute of Frauds, which requires certain contracts including real-estate contracts (except leases for a year or less) to be evidenced by a writing signed by the person against whom enforcement is sought, has been riddled with exceptions by courts which have invented rules to prevent hardships such as the forfeiture you are facing.

I suggest you start by getting a copy of the California Supreme Court's decision in a case called Monarco vs. Lo Greco, decided in 1950 and reported at 35 Cal.2nd at page 621. You might find the decision via a search engine on line, or visit your county law library and have someone look it up for you.

This case is more than a half century old and has been modified by numerous subsequent decisions and interpretations. However, the principle still stands that 'estoppel' can be invoked to prevent a hardship from occurring due to strict application of the contract-in-writing laws.

After you have an idea of the principle involved, talk to a good local real-estate lawyer and ask whether he or she thinks you have a good defense based upon Monarco and subsequent estoppel cases.

You should defend the action against you and at the same time be prepared to settle on any reasonable terms offered you, but don't roll over and play dead at this stage either!

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Answered on 4/30/02, 6:00 pm
Judith Deming Deming & Associates

Re: joint owners with verbal contract

Your parents own the house--they qualified for and are obligated on the loan--they took the financial risk. You are right that verbal agreements are unenforceable with respect to interests in real proeprty (unlesss there is some independent writing)in California--further, you admit yourself that you did not live up the verbal agreement in any event! You ask, "can they do this to me" as though you are the victim, yet it would appear that your parents are the ones who are entitled to the sympathy. If you are old enough to consider legal action against your parents, you should take responsibilty for yourself and qualify for a house on your own.

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Answered on 4/29/02, 4:15 pm
Michael Cortson Law Office of Michael D. Cortson, Esq.

Re: joint owners with verbal contract

All contracts involving real estate other than a month to month tenancy must be in writing signed by the party to be charged. In you case that means that your parents had to sign a written contract stating the terms of your agreement. A verbal contract is unenforceable. No matter how many witnesses you have a verbal agreement is unenforceable.

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Answered on 4/28/02, 9:20 pm


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