Legal Question in Real Estate Law in Virginia
verbal contract on real estate
If over dinner my Father said if I do such and such to the house, the house is mine, and do so; is the property mine?
Would a mechanics lien help in anyway in getting the property?
2 Answers from Attorneys
Re: verbal contract on real estate
No, verbal contracts involving the conveyance of real property are generally recognized as in violation of the Virginia Satute of Frauds as referenced in Va. Code Sec. 11-1.
Re: verbal contract on real estate
Unfortunately, no. A verbal contract is enforceable if you can prove that the agreement was actually made. The trouble with verbal contracts is proving that the agreement happened.
But there are certain topics that are not eligible for a verbal contract. Real estate is one of them.
So a verbal contract for the transfer of real estate is not enforceable.
However, if you expended money and/or work in reliance on that unenforceable promise, you may be able to get it back. Obviously, filing a lawsuit would be a drastic step with family. But you could file a lawsuit for a "constructive trust" or "unjust enrichment."
People will tell you that "unjust enrichment" (quantum meruit) does not apply where there is a contract. That is false. A failed attempt at contracting also qualifies.
For example, many decades ago Arlington County signed a written contract for the purchase of some fire engines. But the government emmployee who signed them did not have the authority to sign such a large contract. So the contract was not valid.
The fire engine company sued for "unjust enrichment" to get their money, despite the invalidity of the contract.
The court agreed. Arlington County did not have to complete the purchase. But if they wanted to keep the fire engines, they had to pay for them. They either had to give the fire engines back or pay for them, EVEN THOUGH THE CONTRACT WAS UNENFORCEABLE.
So in your case, the contractual promise to give you the house is not enforceable if it is not in writing.
But you CAN get your money back and/or paid for your work, at least potentially.