Legal Question in Real Estate Law in Pennsylvania
My boyfriend and I purchased a home in November of 2008. We took a mortgage loan out. My parents gave us the down payment money as a gift. My parents have also been living with us since we purchased the home and we've all been paying half of utilities and mortgage. Two months into living in the house my parents wanted us to sign an agreement that stated if we wanted to sell the property we would have to get their approval first. We didnt want to sign the agreement, but they threatened to not pay any of the bills until we did so. They also stated that they would not leave the premises and we would spend a fortune making threm leave through the courts. So we did sign the agreement, but we felt as though we were forced to do so. Now we want to sell the property and my mother stated if we sold the property we would owe them the downpayment money (which they signed a gift letter for). Will we have to pay the gift money back?
2 Answers from Attorneys
I see lots of issues.
One you could claim that the agreement was the signed under duress. Two, if you made them leave by court action then they would be hit for the costs. Three, if they try to enforce the agreement and now claim the down payment wasn't a gift they will have to explain the gift letter. Let me guess the gift letter was required by the bank. So, if they want out of the gift letter than they will have to explain that to the bank.
So for them to sue you under contract, if you sold the house and didn't pay them the down payment, they would have to file a complaint with the courts. If the amount is over $8,000 they'll have to do it in Common Pleas court that will cost then $135 plus the cost to serve you. Unlike an eviction the cost will be paid by them. Further, they'll have to hire an attorney as will you.
If you have any questions feel free to contact me. The initial consultation is free.
{John}
There are a number of issues here that could be raised by all sides, however, besides duress, as I see it, the primary issue is WHO is in the deed? Without seeing what you signed, I find it highly unlikely that what you signed is enforceable, as I assume they are not on the deed. Where did your parents come from, a trailer park?
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