I know someone who has been living in a house that her parents own and they do pay rent. The expectation was they would purchase the house w...

Question

I know someone who has been living in a house that her parents own and they do pay rent. The expectation was they would purchase the house when finances/credit is fully repaired. They have made improvements to the property (fence, appliances, refinished hard wood floors, painted, and etc.) There is no rental agreement or anything in place just a verbal agreement that when they can get financing they will purchase the property. Recently they had a disagreement with the parents (not about the property) and now the parents are trying to make them sign a lease. They do not have a problem signing the lease but want to make sure they do not lose out on the money they put into the property out of their own pocket. Do they have any legal grounds to stand on recouping the money they put into the house?

Answer

We don't answer questions for people who "know someone" - we want to help those who have issues and ask us themselves. So the best you can do is recommend that this "someone" talk to an attorney. A lease that could lead to a purchase of the property should be properly negotiated and written up and cover all issues and concerns.