Legal recourse over below market home sale?

[Anonymous]

My friend (first time home seller) sold his childhood home that he lived in to someone for $125k under market value. At worst, the buyer lied to him about what he intended to do with the home that resulted in my friend selling the home to him for $140k. Supposedly he promised to do something special like make it a home for elderly people.

At best, my friend misinterpreted the terms of the deal only to see the buyer turn around and sell the home four months later for $125k more. When I heard this story, I couldn't believe it, but tried to reassure myself that it was for perhaps $20-40k or something. Something to be momentarily upset about but nothing to lose sleep over.

Then I looked up the sale price today on Zillow and was stunned to see the difference was so much. I highly doubt any of the agreement was in writing. But does my friend have any legal recourse here to claw back some of this money? Or is it hire lawyers to try to get this guy to give back some cash? I know those are probably one in the same.

[Anonymous]

There is no legal recourse for stupid, OP.

[Anonymous]

If it isn't in writing it might as well not exist. If you friend is rich enough, they can sue to muddy any sale, but unless the buyer admits to breaking a promise that the sale was contingent on, he will lose.

[Anonymous]

Anonymous wrote:
There is no legal recourse for stupid, OP.

Correct.

[Anonymous]

He didn't give the house to a charity. That was really stupid.

[Anonymous]

Was there an agent involved here? If an agent priced home 140K under market I'd think you could sue them for negligence (their duty of care would be to price at a market rate and to do the research that requires). But if they opted not to use an agent, it's on them.

[Anonymous]

Its what investors do...why do you think a few of these companies can advertise on TV. They are screwing the seller. Hire a Realtor and net much more by making investors compete and still settle in a timely manner, potentially without repairs. Sorry he screwed. Hope it was good for him

[Anonymous]

Once you sell a house, you have no legal recourse for what happens to it afterwards.

[Anonymous]

Anonymous wrote:Once you sell a house, you have no legal recourse for what happens to it afterwards.

If there is an agreement in writing you have recourse.

[Anonymous]

As anyone who has completed their 1L property and contract classes will tell you, real estate transactions need to be in writing, and as a general rule of contract law, when there is a written instrument, verbal promises made alongside it are considered null and and void.

[Anonymous]

Your friend fell for the oldest trick in the book.

[Anonymous]

Verbal contracts or handshake agreements, are legally binding but difficult to prove.
In this case it might not be hard to prove.

[Anonymous]

Your friend is stupid. Caveat emptor.

[Anonymous]

Anonymous wrote:Was there an agent involved here? If an agent priced home 140K under market I'd think you could sue them for negligence (their duty of care would be to price at a market rate and to do the research that requires). But if they opted not to use an agent, it's on them.

Eh probably can't even because OP's "friend" knew it was far below market.

[Anonymous]

Your friend should talk to a lawyer, if truly interested, because it likely is highly dependent on state law. Having said that, generally speaking, sales agreements for homes are going to be hard to challenge with a supposed oral agreement outside of the contract, and depending on the location, it is likely the "statute of frauds" comes into play. But really, this is not an easy yes or no without a lot of other details and legal knowledge.