offspring

smudger1946

Need some advice please.
My daughter and partner bought a property a few years, not being able to get a mortgage between them, her partners mother lent them the money by borrowing against her own home.
Between them they made up a contract (not done through any legal body), they all agreed to pay a monthly amount into the mothers bank account, if they wanted to go there own way the property is to be sold and pay off the debt and any profit to be shared between the two partners.
All three agreed and signed up to this effect and it was witnessed by someone
The upshot of the story is, they are to split up and put property up for sale, if it all turns nasty, which these things normally do, what rights and wrong does this contract carry?
The typed up contract is very vague!
Hope the above makes sense!
I thought the mother was foolish or very kind, she is 70+
Many thanks smudger

charliee_3

i think it would hold up in a civil court case (up to £5000) But i dont think it would stand up in a proper court case if it came to it.. i may well be wrong as my knowledge is mostly from watching judge judy!!

who's name is the house in?

is there any provision for if there is no profit/ a loss and who would be liable for the shortfall?

princeofpounds

If things go wrong then lawyers will be retained and there will be a court case.

The contract may nor may not held to be valid (it probably will given it was witnessed) and then the court will decide what it means. They will use the wording of the contract, but can in theory also decide on the apparent intentions of the counterparties if the contract wording is not clear (for instance, you cannot back out of a contract if the name is mis-spelled as long as it is clear that the intention to create the contract with that person was there).

smudger1946

Mother is the owner.
The contract is obvious what it says.
No provision for loss is written up and i think there could be a loss too.
Mny thanks.