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  1. #1
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    Nov 2007
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    Default Collecting Money Owed on a Verbal Contract

    My question involves collection proceedings in the State of: California

    My g/f recently sold her condo unit to an acquaintance. This was a for Sale by Owner deal to save both parties Realtor fees ( buyers idea) . The contract was written up and both parties signed without hesitation. The exact wording in the contract was that the seller would split half of the "escrow agent fees" with the buyer. These fees were taken out at the time of closing.

    Besides the written contract, there was also a verbal agreement to pay some cash on top of what the condo sold for on paper. This was to be used for moving expenses and new appliances since the condo was left with all the previous appliances ( washer, dryer, fridge, stove and microwave). Well the buyer somehow cant make sense of the contract and took half of ALL their fees out of the cash that was agreed upon. My gf has emails and text messages from the buyer stating that they would pay this amount. On top of that, I was a witness to this person stating that they would pay this amount of money along with another person who is friends to both parties as well......

    With the text, emails and 2 witnesses...will this hold any value in small claims court?

  2. #2
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    Default Re: Collecting Money Owed on a Verbal Contract

    She has in writing that they promised to pay $10K, which were her moving expenses.
    first you say verbal and now you say she has it in writing./ Which is it?

  3. #3
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    Default Re: Collecting Money Owed on a Verbal Contract

    Quote Quoting jk
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    first you say verbal and now you say she has it in writing./ Which is it?
    It was a verbal contract, but we have email, text and witness proof stating they would pay the money. Forgot to mention they did pay half about whats owed, I think that in itself shows that they did owe some amount of cash, just trying to collect the rest.

  4. #4
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    Default Re: Collecting Money Owed on a Verbal Contract

    I wouldn't say it is necessarily illegal nor unenforceable. I don't think there is enough information here to make a determination either way.

    Paying a persons moving expenses would not necessarily be illegal nor would they have to be included within the sale of the house itself.


    Of course, if you go to court, the court is going to demand you prove your case (which it would appear you might have that) but we do not know what the other party is going to argue as a defense.



    Of course, there are reasons this might be illegal as well but again, with the limited info, I do not know which it is.

  5. #5
    Join Date
    Sep 2013
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    Default Re: Collecting Money Owed on a Verbal Contract

    Quote Quoting jk
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    Paying a persons moving expenses would not necessarily be illegal nor would they have to be included within the sale of the house itself.
    Paying "moving expenses" and money to buy new appliances overstates the value of the house letting the buyer get a bigger loan than necessary and overstates the buyer's basis in the property. If the appliances were not fixtures, then there could have been a separate deal made for them. That is not what happened. What was the consideration for paying the moving expenses? Nothing other than the sale of the house. It was all the same transaction and it all should have been on the mortgage forms.

    The buyer is not coming up with more money from his pocket to pay this amount. He is taking it from the loan. It should have been disclosed.

  6. #6
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    Default Re: Collecting Money Owed on a Verbal Contract

    Quote Quoting Welfarelvr
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    Paying "moving expenses" and money to buy new appliances overstates the value of the house letting the buyer get a bigger loan than necessary and overstates the buyer's basis in the property.
    Are you sure that the appliances were included in any appraisal? In the agreed upon purchase price of the condo? No, you are not.

    If the appliances were not fixtures, then there could have been a separate deal made for them. That is not what happened.
    Huh? That is exactly what is being said. That a separate agreement was made to purchase the appliances and to provide moving assistance.

    What was the consideration for paying the moving expenses? Nothing other than the sale of the house. It was all the same transaction and it all should have been on the mortgage forms.
    Why? What law says that it must be included?

    The buyer is not coming up with more money from his pocket to pay this amount. He is taking it from the loan. It should have been disclosed.
    Where does it show that the buyer is taking any money from the loan to purchase the appliances and provide the moving expenses? How could the buyer even do that if its a separate agreement?

  7. #7
    Join Date
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    Default Re: Collecting Money Owed on a Verbal Contract

    Welfarelvr;747092]Paying "moving expenses" and money to buy new appliances overstates the value of the house letting the buyer get a bigger loan than necessary and overstates the buyer's basis in the property.
    How is that? The moving expenses and appliance money was outside of the RE contract.


    If the appliances were not fixtures, then there could have been a separate deal made for them. That is not what happened.
    appliances,. unless the are built ins, are not fixtures. They are chattel.
    What was the consideration for paying the moving expenses? Nothing other than the sale of the house. It was all the same transaction and it all should have been on the mortgage forms.
    Why?

    Besides the written contract, there was also a verbal agreement to pay some cash on top of what the condo sold for on paper. This was to be used for moving expenses and new appliances since the condo was left with all the previous appliances ( washer, dryer, fridge, stove and microwave).
    The buyer is not coming up with more money from his pocket to pay this amount. He is taking it from the loan. It should have been disclosed.
    No he's not. It is coming out of his pocket.

    Besides the written contract, there was also a verbal agreement to pay some cash on top of what the condo sold for on paper. This was to be used for moving expenses and new appliances since the condo was left with all the previous appliances ( washer, dryer, fridge, stove and microwave).
    where do you get that money is rolled into the loan?

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