Legal Question in Real Estate Law in Iowa

oral contracts

I am attempting to close on the purchase of a farm property. A tenant who rents space( about an acre) for a mobile home states that they had an oral agreement to purchase that acre from one of the current owners. Do the tenants have any legitimate legal claim without any written contract? I am concerned that I could be forced to sell the acre to the tenants at some later date if they were to sue.


Asked on 10/02/02, 12:27 pm

1 Answer from Attorneys
Jay Pollak The Pollak Law Firm, LLC

Re: oral contracts

The tenant has no legal claim. All interests or dealings in real estate MUST be in writing. His is not so his "option" is not valid. However, since it has been disclosed to you prior to closing you should have the seller dispose of this issue with the tenant. Out of an abundance of caution you should have the Seller indemnify you against any claims by the tenant of the tenants claim of a option to purchase.

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Answered on 10/02/02, 2:14 pm


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