Money Owed me on a House.Can I file a Memoradum? - Posted by TC

Posted by Brent_IL on October 14, 2003 at 01:37:27:

Since you’re familiar with small claims court, give it a shot. There are Rules of Evidence that relate to recordings where parties have not been made aware of the fact that the conversation was being taped, but they may not apply to actions in small claims court.

You can mention the answering machine tape that was inadvertently left running in your complaint and maybe he’ll settle.

Money Owed me on a House.Can I file a Memoradum? - Posted by TC

Posted by TC on October 12, 2003 at 20:15:25:

I have a investor that owes me money on a property that I assigned him.He has made one promise after another and never follows through.Now he has stopped answering my calls and will not return them from any messages that I leave on his voicemail.
He has since completed the rehab on the house and has it listed.What can I do to protect my interest without him agreeing to sign any paperwork?
Could I cloud the Title with a Memoradum of Agreement?



Re: Can I file a Memoradum? - Posted by Brent_IL

Posted by Brent_IL on October 12, 2003 at 21:42:48:

The short answer, which is applicable to your situation, is that if you have a written agreement that establishes the terms of your assignment, get a lawyer now. If it was an oral agreement with the rehabber, cut your losses and move on. Lesson learned.

Will this work? - Posted by TC

Posted by TC on October 12, 2003 at 22:58:57:

Thanks for your input Brent.I know what you are saying holds merit but I don’t give up that easily.Do you know anything about “memoradum of agreements”.
I am of the opinion that if you have a agreement oral or otherwise , that this will cloud the title at closing and force the seller to deal with you.
If this is not a option then I guess that it would be a small claims issue.
I remember a realtor telling me that you can have the seller give you some type of a disbersement slip that will get your money at closing.Anyone familiar with this method?

Re: Will this work? - Posted by Brent_IL

Posted by Brent_IL on October 13, 2003 at 16:42:44:

This isn?t a question of giving up. This is a stop-loss.

It’s easy to get money at closing if the seller gives the settlement agent something, anything, which says that you are to be paid out of escrow. If the seller will give you a “dispersement slip” of your choosing, you’ll have no problem. The escrow agent can pay for anything out of escrow that he or she has instructions to pay.

It?s the seller?s deal. Your instructions to the escrow officer are meaningless without the seller?s consent. As Martin explained, a memorandum of agreement will cloud the title long enough for the title company to request a copy of your agreement. If you say it?s an oral agreement, they will exclude you and issue a title policy. They know statute of frauds section of the statutes, too.

It is your option to try small claims court, but it is real easy for the rehabber to say, ?Your Honor, TC had a deal he couldn?t do, so he assigned it to me. I gave him $50. Two twenties and a ten. End of story. This is a frivolous claim, so I am filing a counter-claim for $1,000 because TC is playing games since he found a new backer.?

You have nothing in writing to contradict anything he says.

Watch Out - Posted by Martin Greenberg

Posted by Martin Greenberg on October 13, 2003 at 03:36:59:

Dear TC:
Please follow Brent’s advise about consulting a lawyer. Can you file a memo?Yes. If your agreement is not in writing it may not be enforcable under the statute of frauds that states all real estate agreements must be in writing or they are not enforcable. If you file the memo without written back up, you may open yourself up to slander of title and YOU can be sued. Pretty slimey, isn’t it?

Re: Will this work? - Posted by TC

Posted by TC on October 13, 2003 at 17:02:40:

I do have a recording of the two of us on the phone in that he admits to owing me the money on this property.
I started this job on a ladys house once and I at the time had not gotten her signature on the contract,The next day that I came to finish the job she had a different contractor doing the work.Well I took her to small claims and lost because I could not prove that I had a written or verbal contract.After the Judge made his ruling he then turned to the lady and scolded her and told her cthat he thought that she used me to get a lower price.
Lesson learned:Get proof of a signed or verbal contract.
But Dang,who has the time to chase the small things in life?