Legal Question in Real Estate Law in Massachusetts

My husband and I bought a house. His mother signed a "gift letter" for $99,000 at the time of purchase. We are now selling the house (only mine and my husbands names are on the deed) and his mother wants most of her gifted money back. We have made an offer of a 3:2 ratio split (in her favor) based on her cash in versus our cash in over the period of ownership. Our question is......
Is the gift letter leagal and binding? We fear his mother (with the help of many family members) are seeking legal action against us to protect her gift of $99,000 and we want to know if there are any loopholes.

Asked on 3/18/10, 6:35 am

3 Answers from Attorneys

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A gift is a gift. Unless she wants to say she committed fraud upon the bank, she has no right to the money back. She signed a gift letter and understood (I assume) that it was a gift to you and your husband.

I would suggest you try to make peace with her, but other wise you have a valid defense to any such action.

Answered on 3/23/10, 8:08 am

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Christopher Vaughn-Martel Charles River Law Partners, LLC

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If the money was a gift, then she is not entitled to be repaid. If the $99,000 was a loan to you and your husband, then you should pay it back. If it is a loan, what are the terms? Repayment upon sale of the house? Repayment with interest or without?

A transaction of this size should not have been attempted without attorneys, and I suggest that you speak with one now to make sure you are protected going forward.

Answered on 3/23/10, 8:09 am

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