Home purchased for my children and I in 2007 by my step father who now refuses to sell me the home

[Jose Luna]

Jurisdiction

New Jersey

Here is a breakdown of our issues to see if this is something that can be resolved in court:

1. In 2007, I was in the process of buying a home which we ended up doing in Clifton NJ. During the process there was an attempt to secure the mortgage under my name but because of credit concerns, I was not approved for the mortgage. We ended up having to buy the name under my step fathers name, which he is listed on the deed and the mortgage alone. My mother helped by securing half of the down payment.
2. Since day one, I have fully paid for everything of this house, including property taxes, the complete mortgage, home insurance, repairs, renovations and improvements, land scaping, snow removal. Essentially absolutely everything because in my mind, this has been our home.
3. Over the years the plan was to remove (Step Father) from deed and mortgage by either refinancing or taking out a new mortgage to assume responsibility of the property and was always discussed would be for what was owed, nothing more. But unfortunately something always created an obstacle for doing this specifically with my credit and being self-employed.
4. For many years, (Step Father) and my mother who by the way are considering a divorce has always complained to me that this house where I live was showing on tax record and many state and local agencies where they were applying for help (for example: to reduce their property taxes based on senior citizen allowed reductions in NY State) as rental income, even though on his tax returns the number was always zero, because I paid the mortgage in full and he never made money from the monthly payments. So I had called and written letters to these state agencies explain the situation, confirming that this was my primary residence and have maintained it since day one with the intention of assuming the loan when possible, that Jose Aviles simply purchased the home for me because of my credit etc.
5. We even started in 2016 to include this property on my own personal tax returns and (Step Father) stopped using this property on his tax returns because the IRS has a rule which I discovered that basically states if you could prove that you pay and maintain a house in full, you may claim it on your own tax returns. We even the amendments to show from Mr. Aviles himself where we removed the property from his return and added it mine.
6. I have the original contract of sale and letters from our real estate attorney who did the process of this purchase and I am listed on the contract as a buyer and all the letter faxed and written from my attorney used during home purchase.
7. If based on his claim that this property which he now states was his, why was I never issued a lease, or some sort of contract, why did he allow me to do a complete house renovation as recently as 2020 which I spent over 150K on renovations and improvements if his intention was not to sell me back the house?

I am looking to sue him for breach of contract (verbal), fraud and deception.

 

[Redemptionman]

? Breach of contract for what? I verbal contract. LOL

Yeah the mortgage is in his name meaning he is the financial guarantor for the house. You may have something as you have paid taxes on the house for so long and usually that indicates ownership. However, the laws have changed so if he sells you all the house it will have to be for fair market value and not what you have in it or have left on it.

You are basically renting to own in this situation and should have gotten a mortgage in your name years ago. I would try and buy out his interest and keep it away from the federal agencies.

Good Luck.

 

[Zigner]

Real estate contracts must be in writing. It's his house.

 

[army judge]

As a general rule, oral contacts in New Jersey are enforceable – not that they are recommended; indeed. Attorneys tend to recommend that contracts be in writing because they are easier to prove and leave less room for misunderstandings. However, if you can prove the terms of an oral contract New Jersey courts will generally enforce it.

A big exception applies to this, however, in the Statute of Frauds. Under the New Jersey Statute of Frauds, courts will refuse to enforce certain oral contracts even if you can prove them. This law is based on the premise that oral contracts are inherently less reliable, and writings in certain situations are necessary to prevent perjury or unfounded claims. The Statute of Frauds has its roots in the old Statute for the Prevention of Frauds and Perjuries which was adopted by the English Parliament in 1677, and was thus the law in England's American Colonies when they became independent. The main elements of the Statute of Frauds are found in one section of New Jersey Statutes, but other elements are spread in different sections of Chapter 25 of Title 2A of New Jersey Statutes.

The main types of contracts which the Statute of Frauds requires to be in writing are:

A loan, grant or extension of credit for greater than $100,000 made by a person or entity which is in the business of lending. This provisions also applies to leases if the lease is the primary means of the lessee or borrower of obtaining financing.


An agreement in which a creditor agrees not to exercise any contractual right or remedy when the amount involved is greater than $100,000.


Contracts for transactions involving interests real property (the legal term for real estate). The term "interests in real estate" is quite broad, although not all-inclusive. For instance, mortgages, agreements for partition and easements are all considered interests in real estate that require written contracts.


Real estate brokers' commission agreements. This includes commissions on both the sale and lease of real estate. There are some exceptions to this, however, although they are quite formal and narrow, such as if the agent confirms the agreement in writing within five days, if the broker relies in good faith on the oral agreement, or if the broker entered into negotiations before the written contract was signed.


The promise by one party to be responsible for the obligations of another. This requires both that the person assuming the obligation sign, and that the person with the alleged obligation actually did have an obligation.


Leases with terms of greater than three years. While a written agreement containing specific information is required, courts will enforce such a lease even if some of the required terms, such as a description of the land, are missing. However, good practice would be to make sure all the necessary terms are included in writing.


Prenuptial Agreements. In 2007, New Jersey adopted the Uniform Premarital and Pre-Civil Union Agreement Act which required that prenuptial agreements made after February 19, 2007 be in writing.

 

[adjusterjack]

I am looking to sue him for breach of contract (verbal), fraud and deception.

You'll need an attorney and the cost of that litigation could be tens of thousands of dollars.

I'll simplify this for you.

You've been a tenant for 14+ years. All the money you have put into the house was rent.

While it is true that contracts for the purchase of real estate or long term leases are required to be in writing, the landlord tenant statutes contemplate and address month to month tenancy at will without any written agreements.

You might be able to show that a "constructive trust" existed. Google it. But that's a stretch and the cost of litigation is also likely to be prohibitive.

It's no surprise that he doesn't want to "give" you the house. It's probably worth more than twice the purchase price.

I suggest you find yourself another place to live, give him proper written notice, and put an end to this charade.

 

[zddoodah]

In 2007, I was in the process of buying a home which we ended up doing in Clifton NJ.

First you say "I," but then you say "we." Who are "we"?

During the process there was an attempt to secure the mortgage under my name but because of credit concerns, I was not approved for the mortgage. We ended up having to buy the name under my step fathers name, which he is listed on the deed and the mortgage alone. My mother helped by securing half of the down payment.

So...you didn't buy the home. Your mother and stepfather bought it.

Over the years the plan was to remove (Step Father) from deed and mortgage by either refinancing or taking out a new mortgage to assume responsibility of the property and was always discussed would be for what was owed, nothing more.

Was this "plan" memorialized in writing and signed by all concerned parties?

We even started in 2016 to include this property on my own personal tax returns and (Step Father) stopped using this property on his tax returns because the IRS has a rule which I discovered that basically states if you could prove that you pay and maintain a house in full, you may claim it on your own tax returns.

Ummm...no. You have to own it to claim it, and you don't own it.

I have the original contract of sale and letters from our real estate attorney who did the process of this purchase and I am listed on the contract as a buyer and all the letter faxed and written from my attorney used during home purchase.

Doesn't much matter what the contract says since you didn't actually end up buying it and the deed was made from the seller to your mother and stepfather.

If based on his claim that this property which he now states was his, why was I never issued a lease

Honestly, it's because none of you had a clue what you were doing. That being said, it is anything but surprising to see one family member leasing to another without a written lease.

why did he allow me to do a complete house renovation as recently as 2020 which I spent over 150K on renovations and improvements if his intention was not to sell me back the house?

Rather obviously, none of us know what you all were thinking, but why not? If you wanted to spend a ton of money to renovate someone else's house, why would the owner object to that? I'm guessing this was all done without any sort of written contract. Right?

I am looking to sue him for breach of contract (verbal), fraud and deception.

What contract?

Section 25:1-13 of the New Jersey Revised Statutes: "An agreement to transfer an interest in real estate or to hold an interest in real estate for the benefit of another shall not be enforceable unless:

a. a description of the real estate sufficient to identify it, the nature of the interest to be transferred, the existence of the agreement, and the identity of the transferor and transferee are established in a writing signed by or on behalf of the party against whom enforcement is sought; or

b. a description of the real estate sufficient to identify it, the nature of the interest to be transferred, the existence of the agreement and the identity of the transferor and the transferee are proved by clear and convincing evidence."

Sub-section b might give you a hook, but it's going to cost you a boatload of money to litigate this.

 

[adjusterjack]

We ended up having to buy the name under my step fathers name, which he is listed on the deed and the mortgage alone.

It appears that mother didn't buy the house either.