Legal Question in Real Estate Law in California

Long Standing Verbal Agreement

Hello, While I have read that verbal agreements are invalid in most cases.I need to know if mine might be one that is valid.Myself, husband and four children have lived in one of my Grandparents homes for over 20 years. Two lots together have four homes, we are in one.My Grandparents have always said this was our home.When it was put in my Mothers name a few years ago she stated this as well, many times.We took a loan on a separate property to improve this home we are in even though it was not in our name...but my parents always said don't worry it is yours.Stupid move.Now that my Grandparents are both gone, my Grandfather just passing last month my Mother wants to sell the property.It could be subdivided and she said she was looking into that, but now states she is going to sell it all.It has ALWAYS been said that it was ours by all...any chances of things going our way, and what would we need to do.If asked in court if the statement was true would it not be enforceable?Thank you.


Asked on 1/14/05, 10:49 pm

6 Answers from Attorneys

Ken Koenen Koenen & Tokunaga, P.C.

Re: Long Standing Verbal Agreement

I agree with Mr. Whipple's answer, and would ad that you might be entitled to reimbursement for improvements that you made, if she does sell the property.

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Answered on 1/15/05, 1:05 pm
Christopher M. Brainard, Esq. C. M. Brainard & Associates - (310) 266-4115

Re: Long Standing Verbal Agreement

You probably have a case and some damages to recover based on your improvements to the property. You may contact me.

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Answered on 1/15/05, 2:23 pm
Daniel Harrison Berger Harrison, APC

Re: Long Standing Verbal Agreement

Agreements to transfer title to real property must be in writing to be enforceable. However, there are a few exceptions to this rule. Feel free to give us a call to discuss your options in better detail. Whether the exceptions apply will depend on the particular facts of your situation. (949) 548-1700.

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Answered on 1/16/05, 6:18 pm
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: Long Standing Verbal Agreement

First, the rule on oral agreements is different that you state. Oral agreements are generally enforceable. The problem is that it is difficult to persuade a judge or jury that the agreement exists, or what its exact terms are.

However, and this is the bad news, two of the few exceptions to the validity and enforceability of oral agreements are that agreements for the transfer of real estate must be in writing, and suits to enforce oral contracts must be brought within one year of breach. The so-called Statute of Frauds and Statute of Limitations, respectively.

The good news (perhaps) is that oral agreements for the transfer of real estate have been upheld, despite the statute saying they shouldn't be, by use of a theory called "promissory estoppel" which can be used, sometimes, to in essence circumvent the need for a complete and valid contract.

I suggest you locate and read a California Supreme Court decision, from the 1950s, I think, called Monarco versus Lo Greco. It's pretty well known; you can probably find it on the Internet or have a law librarian (every county has at least one public law library) look it up for you.

The facts of Monarco v. Lo Greco are somewhat similar to yours. Old family promises, made orally, were upheld to bring about the transfer of the family farm to the son who had stayed to work the soil and make improvements, despite a change of heart by the elders and despite lack of any written agreement.

I'm not saying you'll win, just that this case, and later cases adopting its reasoning, suggest that you have a line of argument that might work.

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Answered on 1/15/05, 3:22 am
Larry Rothman Larry Rothman & Associates

Re: Long Standing Verbal Agreement

Normally, any agreement for the sale, gift, of real property must be in writing. You may be able to get around the statute of frauds if you can prove your investment in the improvements are substantial. Our firm handles cases throughout California and you may be able to file a quiet title action.

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Answered on 1/16/05, 1:14 pm
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: Long Standing Verbal Agreement

A colleague has pointed out an error in my earlier reply. The statute of limitations for an oral contract is two years. Code of Civil Procedure section 339.

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Answered on 1/17/05, 5:01 pm


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