Legal Question in Business Law in New York

verbal agreement

Last year, I had purchased a couple of properties that needed to be rehabilitated.My brother at the time was not working, so we made a verbal agreement stating we will work on the properties together and for retirement we will split the profits of the rental income.After 6 months my brother decided to change his mind and is now suing me for half of the equity in the properties and also future rental income.There are no written agreements, just witnesses to this agreement.the propeties are in my name only and were purchased prior to this agreement.Do I have to ''buy him out''? He has an attorney who says I do.


Asked on 12/20/03, 12:54 pm

3 Answers from Attorneys
Walter LeVine Walter D. LeVine, Esq.

Re: verbal agreement

If he put no money up for the purchase, he has no claim to equity. However, if he worked on the rehabilitation and/or put money into the costs of rehabilitation, he may have a claim for reimbursement and "quantum meruit" which is legalese for a fair payment for the work done and/or moneys paid. Usually contracts involving real estate must be in writing, so the failure to have anything in writing should cover the equity claim. However, a court may allow the claim involving the split of profits for services and capital provided.

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Answered on 12/22/03, 12:11 pm
Robert R. Groezinger GroezingerLaw P.C.

Re: verbal agreement

In NYS, to satisfy the statute of [against] frauds, all contracts for real estate MUST be in writing and signed.

Get a lawyer to protect yopur interests. This is clearly not something that can be done alone.

Good Luck

RRG

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Answered on 12/20/03, 4:51 pm
David Slater David P. Slater, Esq.

Re: verbal agreement

While he may be entitled to a fair payment for the work he did he is not entitled to any ownership. Suggest you retain your own lawyer. Good luck.

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Answered on 12/20/03, 6:13 pm


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