The mortgage for the home is $295,000 and after the recent increase in home prices and with the new rennovations it is valued at $400,000. We made a verbal agreement prior to any work that the home was to be sold upon completion at that price point. Since then family tensions and their money problems have caused
The mortgage for the home is $295,000 and after the recent increase in home prices and with the new rennovations it is valued at $400,000. We made a verbal agreement prior to any work that the home was to be sold upon completion at that price point. Since then family tensions and their money problems have caused our relationship to deteriorate and there is ill will between us. Now after my $17,000 invested ( with another 5,000 of work to be completed ) my relative has decided to not sell the house and pay me the 17,000 I have invested by taking out a loan. The value of the home has considerably increased as a result of my investments. This venture was supposed to yield a roughly 35,000$ profit for each of us and I have since invested money in other areas under the assumption that I would be receiving this return in the near future which has placed a financial burden on myself. What are the legal peramters to this scenario and is there any action that can be taken on my part to ensure the agreement it s executed as originally agreed upon?
Generally anything having to do with real estate has to be in writing to be enforceable. Otherwise it is too easy for someone to lie with big consequences. But if you want to know what your options are, consult an attorney.
Your error was NOT getting it in writing.
They can get away with reimbursing you for the $17,000 and nothing else. Taking them to court won't get you a better deal, so take the loan and count it as a learning experience.
Based on how the story started, I think you are ending up pretty darn good.
I expected that you did all the work and paid for all the material, then the owner decided not to sell and wasn't going to pay you.
You had no agreement to get paid for labor nor get an additional 10% = this is something you are simply pulling out of the air because linkus suggested. No way, would the owner be responsible for this. Nothing remotely was mentioned. You didn't bother to create a backup plan, just like you couldn't be bothered with a written contract. Just hope you get the $17000.
Assuming you can get the relative to admit the verbal contract existed, you can sue, but I wouldn't hold my breath on that happening. Instead I suggest approaching the debt as an investment looking for a reasonable yield of 10% over and above your costs and charging for your labor if you did any work yourself, increasing the claim from the relative accordingly. It won't serve to give you the 200% return you originally planned, but you also won't walk away with nothing.