Landlord Breach Of Oral Contract.

[Awst]

Our landlord either let the property go in to foreclosure or into bankruptcy(Not sure which). He told my boyfriend(the renter) that if he*the landlord did either of these then we wouldn't have to pay rent,just utilities so that we could save our money to move. This was a conversation that was held at least twice between them. The  landlord is now saying "that isn't what he meant, we owe him two months back rent(the time of the "agreement & we still have to pay him,his trustee and have the utilities switched to our names." What can we do? The landlord is also my boyfriends boss and our rental has never had any lease due to the fact that the landlord has no landlords license.

ANSWER: This really moves into the realm of legal advise.  However, let me give you my take on it as an educated "civilian".

Many states require that all real estate contracts be in writing.  Depending on the local interpretation that may include rental agreements.  Regardless, the problem with oral contracts is unless there are third party witnesses, it quickly breaks down to "he said, she said".

I would be looking at this as if I were about to go to small claims court.  First, it sounds like the owner may be breaking the law by not having a rental license.  May want to research that.

That aside, a property owner does have the right to collect rents during bankruptcy or foreclosure.  Until the property is actually taken away it is still his.  But since he is not paying his mortgage it sounds like he thought he couldn't collect rent.  Now that he has found out that he could, he is going back on this oral agreement that no one can "prove".

Or if there is a trustee involved he is likely in bankruptcy(could also be in foreclosure but there is no trustee per sec that would be involved).  Then I am guessing that the trustee discovered that there had been paying renter and as an officer of the courts is supposed to account for any possible revenue.  Possibly putting pressure on the landlord to cough up these "missing" payments.

It's extra touchy with the landlord being a boss.  But if you want to fight this I would be looking at the rental license requirements.  It might be illegal for him to even be collecting rent.

Steele

---------- FOLLOW-UP ----------

Thank you for the information. Unfortunately the oral contract was not witnessed by anyone else as far as I know because it was a cellular call and am not sure who may have been around on the other end. I could hear the conversation through my boyfriends phone... but I am pretty sure that I wouldn't be legally considered as a impartial.Just yesterday we received the notice that the house is going to public sale on 3/16. Am I correct in assuming that there were several steps prior to the public sale? And if so ,where legally would we stand being as we had no knowledge of this other then the 1st conversation  two months ago when our landlord said that "if he let the house go into foreclosure or bankruptcy we wouldn't have to pay rent,just utilities." Looking into the rental license requirements may not be a difficulty since my boyfriend is furious about being mislead,lied to and left in the dark. he may or my not really care if he no longer continues to be employed by his boss/landlord after this whole ordeal. Thank you again,and for your patience in dealing with my horrible grammar.

[Gaston]

The foreclosure process varies somewhat from state to state.

Where is the property located?

There are several steps to get to the sale, but they are being done by the lender's attorney.  Figure the 3/16 date as the sale date.  If you are still there, in most areas of the country, once the sale is complete the new owner will have right to possession and can start the process of eviction.  Unfortunately, since you guys don't have a lease you are not protected under the new foreclosure laws that deal with tenants.

Now , maybe your local area has some statutes regarding this situation.  I would see if there is any kind of tenants association that you can talk to.  Otherwise a local real estate attorney.

As far as the landlord trying to collect, it will depend on the legality of his renting(my opinion).  Tough for him to do so if he was illegally renting the property out.