1. Free Legal Help, Legal Forms and Lawyers. TheLaw.com has been providing free legal assistance online since 1995. Our most popular destinations for legal help are below. It only takes a minute to join our legal community!

    Dismiss Notice

Complicated and multi layered situation

Discussion in 'Joint Ownership' started by Edwin66, May 17, 2016.

  1. Edwin66

    Edwin66 Law Topic Starter New Member

    Messages:
    3
    Likes Received:
    0
    Trophy Points:
    1
    Jurisdiction:
    Oregon
    Hi! I have a complicated situation regarding establishing a trust deed to protect money that I invested in a house with my partner that is not in my name. Quick back story: My partner (romantic) and I decided to move in together and I would sell my house while she would sell an investment property and then do a 1031 exchange for a new property. The intent was to move into the new property and hold it for 2-3 years and then assume it as our primary residence. My partner's name is still on another property that she declares as her primary residence to satisfy the laws. Because of the 1031 exchange, my name could not be on the loan or deed. I sold my house and have put over $125k into the new property (lender not aware), but have no legal agreement signed with my partner about the money. It is all a verbal agreement along with an agreement that I own a certain share of the house. I now see this was a bit reckless of me to do this without any legal contracts in place on top of me paying for half the monthly mortgage, upkeep on the house and more than 50% of the utilities. I'm now scared to death that if something happens to her or me or us that my $125k+ will not be recognized by a probate court and my daughter (my sole heir) would be SOL. People around me have said that my partner and I need to get to an attorney ASAP to 1)find a way to legally protect my investment in the event of death or separation and 2)draft a legal agreement regarding the ownership of the house, taxes, market value increases, decision making, eventually having my name go on the deed, etc. My partner wants to take her time to have her tax guy review our situation and then have his attorney friend weigh in with recommendations. It is my understanding, that since we are not married that the attorney can only represent the interests of my partner. I told my partner that I need to proceed with the legal process to protect my investment ASAP and I'm ok with taking our time (in the next month or so) to have the legal house ownership agreement drafted and signed.

    With that said, I've had business associates suggest a trust deed be established for the amount of my investment + interest and applied to the property. That is the best thing to do to protect my interest with my name not being on the deed. In case something happens, I am or my heirs are awarded that deed when the house is dealt with. My partner is against the trust deed idea and believes a living trust would cover us legally. In the mean time, my partner has told me that a handwritten promissory note or even a verbal agreement is legally binding in the courts to protect my investment. I am not comfortable with this. I have explained to her that in this situation, her investment and asset is 100% legally covered because her name is on it while my investment is 100% not covered.

    I welcome any thoughts, suggestions or recommendations regarding my complicated mess. My goal is to have my investment legally tied to the house so that the distribution of assets is automatic at the time of one or both of our passing or due to separation. Thanks!
     
  2. army judge

    army judge Super Moderator

    Messages:
    33,853
    Likes Received:
    5,500
    Trophy Points:
    113

    I must apprise you of just how dire your predicament is, mate.
    If, God forbid, "your partner" were to pass away quietly in her sleep tonight, her heirs could begin eviction proceedings tomorrow.

    As far as what you call a $125,000 investment, the law sees that as a gift.

    The Statute of Frauds (read all about it)



    Statute of frauds


    § 2-201. Formal Requirements; Statute of Frauds.




    Statute of Frauds





    Statute of Frauds Definition | Investopedia





    Contracts made orally are enforceable under our laws.

    However, the statute of frauds requires that five kinds of contracts be memorialized in order to be enforceable. If a contract falls into one of these five categories, the contract is “within the statute” and must be in writing. If the contract does not fall into one of these five categories, the contract is “outside the statute” and does not need to be in writing.

    The five categories of contracts that must be written down in order to satisfy the statute of frauds are:

    1) contracts for the sale of an interest in land,
    2) contracts for the sale of goods for $500 or more (under the U.C.C.),
    3) contracts in consideration of marriage,
    4) contracts that cannot be performed within one year of the contract being made and,
    5) contracts of suretyship.

    It should be readily apparent why "your partner" seems to be moving slowly to help you protect your interests, as well as that of your child.

    I will resist from saying it.
    I hope you get it.

    You effectively have been conned, cajoled, tricked, or beguiled into giving your partner $125,000.

    Legally she's not required to do anything to undo your recklessness.

    Therefore, you'll have to be gentle in persuading her to somehow help you undo the damage.

    The lender will take no note of you.
    The courts won't, either, legally.
    In some states the equity side of the law might be helpful.
    Outside of the Deep South, equity is a little used remedy, and dying on the vines as I write this response.


    I suggest you visit a real estate lawyer ALONE to discuss any potential remedies available to you.

    I suggest you do so with great haste.

    Please, let us know how this develops, and even ends.
    Good luck.
     
  3. adjusterjack

    adjusterjack Super Moderator

    Messages:
    9,267
    Likes Received:
    3,021
    Trophy Points:
    113

    Was the nookie so good that you failed to think with your upstairs brain instead of the downstairs brain?

    I was going to write everything that Army Judge wrote.

    I'll add one more thing:

    That tells me that if you push for any memorialization of your unenforceable agreement she will push back, the relationship will be over, you will be put out of her house, and you can kiss your "gift" goodbye.
     
  4. Edwin66

    Edwin66 Law Topic Starter New Member

    Messages:
    3
    Likes Received:
    0
    Trophy Points:
    1
    Thanks for your responses. I am going to attempt to get a promissory note signed and notarized in the next couple of days. Then, I will push gently towards my partner and I meeting with the attorney to complete a living trust which hopefully can protect my rights within the home in case of death.


     
  5. army judge

    army judge Super Moderator

    Messages:
    33,853
    Likes Received:
    5,500
    Trophy Points:
    113

    Ain't nothing, even that STUFF of which you wrote, so good to give SUMPIN in return for NUTTIN, but a double portion of NUTTIN.

    LOL
     
  6. adjusterjack

    adjusterjack Super Moderator

    Messages:
    9,267
    Likes Received:
    3,021
    Trophy Points:
    113

    There's an old saying (if I may be crass for a moment):

    The screwing you take isn't worth the screwing you get.

    I keep reading all over the place about these financial arrangements that people get into with boyfriends and girlfriends and just through caution to the winds when they are in love and then get good and burnt later.

    I got 10 bucks that says she isn't signing any promissory note or creating a trust for this guy.
     
  7. army judge

    army judge Super Moderator

    Messages:
    33,853
    Likes Received:
    5,500
    Trophy Points:
    113

    So true, yet so sad.

    Why on earth would I eagerly cough over $125,000 to pay for another person's house?

    Sheesh.
     
  8. adjusterjack

    adjusterjack Super Moderator

    Messages:
    9,267
    Likes Received:
    3,021
    Trophy Points:
    113

    From me they get dinner and a movie. ;)
     
  9. army judge

    army judge Super Moderator

    Messages:
    33,853
    Likes Received:
    5,500
    Trophy Points:
    113

    You're a VERY generous person. :D ;)
     
  10. Edwin66

    Edwin66 Law Topic Starter New Member

    Messages:
    3
    Likes Received:
    0
    Trophy Points:
    1
    I understand your question and say that I believe she will sign the promissory note. The intention with all of this was good if not unconventional. We've been together nearly 3 years. Our families are now blended and we share a large group of friends. I don't see her screwing me out of my investment. She rolled in $400k on the 1031 exchange and I offset the cash needed to make it all happen. Have a beautiful home and build for the future. My concern beyond the money is that she is controlling and has threatened to sell the house and cash me out on three occasions so far when we have had disagreements. Now, she is not talking to me because I have expressed that I need to cover myself legally in this situation. Ultimately, she is attempting to control the situation with her tax guy and other ways. I'm trying to get her to understand how exposed I am and hope she can come around...
     
  11. adjusterjack

    adjusterjack Super Moderator

    Messages:
    9,267
    Likes Received:
    3,021
    Trophy Points:
    113

    And you don't see the glaring contradiction between this:

    And this:

    Wake up. You have no future with this woman.

    Denial is not just a river in Egypt.

    And if you think she won't screw you because you have a beautiful home and a build for the future, take a look at what this guy's BROTHER did to him:

    A love story gone wrong.
     
    Last edited: May 17, 2016
  12. army judge

    army judge Super Moderator

    Messages:
    33,853
    Likes Received:
    5,500
    Trophy Points:
    113

    The remedy you seek is only available if she gives you the $125,000.

    There's NOTHING any court can do to compel a giftee to return a gift to a giftor.

    At this point you're dependent ENTIRELY upon her spirit of fair play, equity, and kindness to return your generous love offering.

    Furthermore, your 125K is at great risk relying upon her financial solvency.

    Realistically, the 125K is tied up in HER real estate, unless she has it lying around in her checking account.
     

Share This Page