HELP! Can a private party put a lien against anothers home for a personal loan that was a VERBAL agreement?
Mystic R asked:
A friend of mine has had a falling out with another friend over money. Of course. The person loaned them money and the verbal agreement was that they would repay the personal loan when my friend sold his house. Now, the other party is stating that they are putting a lien against the home. Can someone do this? There was NO legally binding contract, nothing in writing and was only a verbal agreement that existed between the 2 parties. Can he really put a lien against thier home?
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A friend of mine has had a falling out with another friend over money. Of course. The person loaned them money and the verbal agreement was that they would repay the personal loan when my friend sold his house. Now, the other party is stating that they are putting a lien against the home. Can someone do this? There was NO legally binding contract, nothing in writing and was only a verbal agreement that existed between the 2 parties. Can he really put a lien against thier home?
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Tags: Binding Contract, Money, Verbal Agreement
March 28th, 2009 at 11:48 am
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no
March 30th, 2009 at 3:39 am
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If there is no written and therefore binding contract, the party who made the loan is out of luck. They cannot put a lein on someone’s property just on their “say so”.
March 31st, 2009 at 7:44 pm
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Nope,it must be tested in a court of law and then decided by a judge,then put into action for the prosecutor to act on.
April 2nd, 2009 at 3:59 pm
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How is a verbal agreement NOT a legally binding contract? Of course it is, albeit not a contract in the traditional sense. A verbal agreement is the same as a verbal contract. Diamond merchants do many deals verbally, are they exposed to people welching on them with hundreds of thousands of dollars in the balance? Of course not.
That said, in order to get the lien a judge or arbitrator will have to make a ruling whether the debt is valid. Sounds like this is a threat meant to get the matter resolved.