Legal Question in Real Estate Law in Michigan

My sister bought a house last year (all docs are in her name only) but she accepted monetary help from the parents of her live-in boyfriend. Turns out this guy is an underemployed alcoholic with a police record who has emotionally abused her for two years! She is doing what any sane woman finally would...asking him to move out, and planning to sell the house to put the horrible experience behind her. The issue is, his parents (who were so "supportive" before) have now turned on her and are demading repayment of the monies given for the house. There was absoultely NO verbal or written contract for this, and they are trying to bully her into thinking they can force her to pay, or that they need to go "into mediation". My sister has a healthy conscience and would never think of taking people's help without eventually repaying them, "contract" or not. Am I wrong or right to think they have no legal grounds and that she does not have to agree to mediation or anything else?


Asked on 12/21/10, 11:12 pm

1 Answer from Attorneys
Shelly Schellenberg MI & FL private practice

Your sister was smart enough to not put the property in her loser boyfriend's name, but not smart enough to avoid him all together.

It is not relevant that the agreement was not in writing. A court is unlikely to believe that "total strangers" just "handed" your sister a monetary "gift" to buy a house. This means that there must have been some sort of oral agreement, that they were providing funding for the house, because they wanted to help the "couple" get started, because the "couple" included their son. These folks now have "grounds" to file a lis pendens against the property, to protect their financial investment. Your sister will probably have to repay, possibly with interest, at the time of closing (not eventually). If your sister is lucky, there will be enough equity in the property to pay them back. If they are able to sustain a suit, beyond a motion to dismiss, your sister will be ordered into mediation by the court.

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Answered on 12/27/10, 5:06 am


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