Any body know what it takes to legally establish a constructive trust?
My ex-boyfriend is claiming a loan he gave me for a house makes him a partner in the deed. His name is no where on the house but he paid some bills from money I gave him. I never signed a single paper, not even a laon note. Also the loan was paid back plus extra. He's saying he will sue me and force me to sell my house so he can have the profits.
Answer:
In almost every state, an interest in land has to be in a written contract. Otherwise it violates what's called the Statute of Frauds because it'd be too easy to fake a fraudulent oral contract which seems to be the case you've got here. If he is claiming an interest, it would have to be in a written document.
Further, the full payment of a purchase money loan (a loan given so you could buy something with the money) extinguishes any claim that the loan maker has to the property.
That he paid bills for you is irrelevant - it was YOUR money that was used, and even if it wasn't, it's still irrelevant.
If he bothers to sue you about it, get a lawyer to shoot back with what I just wrote above.
What does it take? You need to speak with an attorney immediately on this issue. Verbal contracts can be just as enforceable as written contracts, but if there's nothing in his name on the loan note, etc. then it's basically your word against his. Do find an attorney who handles cases such as this for your best advice.
THIS IS NOT LEGAL ADVICE. This is my opinion only, do NOT rely on the information provided herein for any purpose. For legal advice, consult an attorney in the relevant jurisdiction.
Under the common law, a constructive trust is not something that an individual can set up. A constructive trust is an equitable remedy provided by a court to prevent unjust enrichment or fraud. For example, if a probate court determine that a portion of an individual's will is affected by undue influence, the court can invalidate that portion of the will affected by the undue influence and create a constructive trust, appointing the constructive trustee with the duty of transferring the gift to the intended beneficiary.
I also concur with Noble_Savage in his analysis about the oral contract. Generally, oral contracts are enforceable like any other contract unless they fall under the statute of frauds. A contract involving land generally falls under the statute of frauds. Accordingly, the statute of fraud can be brought up as a defense.
Again, this is not intended to be construed as legal advice. This is only my opinion and not that of a professional.
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