Parol Patrol-Get It In Writing!

 The first thing you learn in Real Estate school is If it is isn't in "writing, it is not enforcable" we all know that at least here in Florida.  Parol contracts  are verbal and cannot be enforced. A gentleman calls to say he has an ownership interest in some properties. Really?                    Public records do not support his claim. Due diligence done, there is no record of this person staking claim on the property listed.  There was no private mortgage, no other names on the deed, no indication his claim was valid. When tackfully asked if a document exists between the parties..the caller reluctantly states it was a "gentlemen's agreement based on a verbal commitment and a handshake." (Wanna buy a bridge in  Brooklyn?) 

Sarcasm aside, this person was of the opinion he was entitled to fifty percent ownership in someone else's property based on nothing more than a handshake agreement!  Since no court in the world would support a "he said so" arguement, taking a calm approach to this persons claim was the best course of action. But wait there more! As "implied partial owner" were you aware the mortagage payments are behind? "What! NO!" he exclaimed.

 It appears he had a business relationship with the person who owns the house. The arrangment went sour and he was looking to recoup something...anything... he could from the real owner of the property. Here is the catch. The property was mortgaged so heavily, it was upside down.  Being the good little Realtor that I am, I pointed out to this poor man, that had he been an actual owner of record, he could also be liable for the unpaid mortgage payments. In addition, if the Real Estate Taxes had not been paid, the mortgage would become subordinate to the pimary mortgage, and even if sold at a tax auction on the court house steps, that mortgage may have to still be paid as well, further compounding the ability to collect on his unrecorded debt.

Something his attorney failed to mention. So instead of a lawsuit being filed, I got a sincere Thank you for explaining how the law works pertaining to getting it in writing! When dealing with foreign investors they do not understand with clarity how important it is that contracts between parties be in writing to be enforceable.

A little empathy goes a long way-acknowledge the persons frustration. Validate their feelings, and explain the law simply and clearly. It resolved without having to go to court. It wasn't such a bad day afterall...