Legal Question in Real Estate Law in New Jersey
Verbal Contract
Made a verbal contract with mother-in-law in 1997 to purchase her home. We agreed to a price and payments, and she said ''it was unnecessary for us to put anything in writing''..''her word was good''. We have been fulfilling these arrangements since. The house was never transferred into our name, and now we are ready to do the transfer and my mother-in-law is now wanting to change the purchase price and wants more money from us.
Will our verbal contract hold up in court if we need to go that far.
2 Answers from Attorneys
Re: Verbal Contract
oh, boy, have you got a problem! no matter if you fight and win, these family type problems are really difficult!!
You need to look over your options with an attorney. You should be able to prove the payments made, from your bank account records. However, proving the dollar amount of the contract, and the other terms of sale, is pretty challenging. I have always had something written to work from, even a letter between the seller and buyer, or a handwritten note. You need to explore this with an attorney's help.
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Re: Verbal Contract
First, NJ law does not recognize verbal contracts for the sale of real estate. However, you might get over this since you have partially performed. The difficulty is that you have nothing in writing, so any litigation, assuming you overcome the non-writing issue, will be a he said/she said problem. However, most cases will go to mediation before trial and some compromise may be available.