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Is it in writing he agreed to the sum of £116,000?
Was anything signed to confirm this?
no unfortunately not. we have a declaration of trust letter that has been put together to confirm this agreement and we have some emails discussing this figure but nothing has been signed.
the declaration of trust letter hasn't been signed though, he is refusing to sign anything. the last time i spoke to him he told me that he wouldn't sign anything until I transferred £100, 000 to his account which is blackmail. Now he wants the house to be re-valued. I feel like he is never going to be happy with any conclusion.
Is there anything that I can do to make him to stick to the agreed price of £475, 000?
If we can not reach an agreement soon then the house will be repossessed. MY brother is under the impression that if the house is repossessed by the bank then he will still receive some equity from the bank once they have sold on the property. From my understanding this is not the case and one the house has gone then it is gone and we will get nothing from the bank. Can you clarify this for me please?
Its bad news I am afriad
Until a contract is signed, either party can pull out
This is because you have no evidence in writing
If he had agreed in writing or does not dispute he verbally agreed to £116,00 then you would have a case
If it was the case that his acceptance was conditional upon it being completed within x time and you went over, or linked to the current market value, then again you would have a case
So if it hes not dispute that he agreed to £116k, you have a case
This is because even verbally it is a contract
And if he changes his mind, that is breach of contract
But the problem is enforcement.
If he refuses to sign then you would need a Court Order compelling him to do so
Can I clarify anything for you about this today please?
he isnt disputing that he agreed to price of £475, 000 but now that the market has increased he wants another valuation to take place and for me to buy him out at the new, possible higher value. I have an email outlining the agreement of his equity of £116, 000.
Could you clarify the process of repossession? If the house is repossessed I am assuming that we will get nothing in return. Can you confirm if this is correct?
Ok - you have a contract, he can't back out - otherwise you could sue
As for possession, it depends what charges are on there
The bank would take first charge and recover their money
Any balance would then be distributed to any other charges on the property and if not to the owners
Does that clarify?
OK so as far as I am aware the only charges against the property is the outstanding mortgage of £242, 000. Can i assume that if and only if the bank sold on the property at a profit we would receive this equity?
Going back to the verbal agreement of the £116, 000 my brother actually asked for something to be put in writing to confirm that I would pay him £116, 000 by x date - our joint solicitor has since put a declaration of trust letter together state this however my brother is now refusing to sign this. Could this be considered his agreement of the equity figure of £116K?
Sorry on another note our joint solicitor is aware of the whole situation with regards to my brother agreeing to the house valuation and subsequent equity figure, would this be in my favour?
Yes that is correct
Verbal - he could be in breach
Solicitor - yes it would help you
Does this clarify?
Yes. Thank you.
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