Legal Question in Real Estate Law in Texas

Verbal agreement in Texas to do a 2 year lease for a restaurant with option to buy the building. Gave $2,000 for deposit for the 2 year lease and this is documented in an email for said term and location. (Email does not state verbal agreement about option to buy though.) Now they are saying they want a 5 year lease and no option to buy. Can I hold them to the 2 year lease with option to buy? Or can I sue them to get my money back plus extra?


Asked on 10/24/12, 2:30 pm

1 Answer from Attorneys
T. Deon Warner Warner & Associates PLLC

Dear Entrepreneur,

An agreement involving real property must be in writing in Texas. So, the verbal agreement to lease and the verbal agreement for the option are generally not enforceable in court. There are execeptions to the rule where one party "detrimentally" relies on the verbal agreement and makes financial or other commitments based on the agreement (and the other party is aware of these commitments). The issue is whether the money you send would be enough for the detrimental reliance. No lawyer can answer that without a very detailed review of your facts and circumstances. My recommendation would be to keep negotiating and not try to force this issue without a clear path of sucesss. Alternatively, you should consult a real estate or business attorney to assist you with assessing any claim you might have.

TDW

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Answered on 10/26/12, 7:45 am


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