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Is my wife legally obligated?

By Darrylbva ·
My wife and her sister made a verbal agreement to split the commission from a real estate deal. In this deal, my sister-in-law is the borrower and my wife is the processing manager/compliance officer of the mortgage company. When my wife and sister-in-law made this verbal agreement, she didn't know that it was illegal. Now from what I understand that it is illegal to share your commission with the borrower. My wife was told by her boss that, if she gives her sister the money she will lose her job. However, my sister-in-law is persistant about getting her share of the money and doesn't seem to care about the legal ramifications. I am writing to find out if my wife is legally obligated to honor the agreement. I don't want her to lose her job. Could you give me some advice?

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Only a few options

by toughguy000 In reply to Is my wife legally obliga ...

1) See a legal adviser, They can direct you where to go and what to do for a minimal fee
2) Explain to her what is happening If she still disagrees then just don't pay.
3) If she wants to take you to court get a lawyer, "An oral contract is as good as the paper it's written on."

Significant difference between oral and written contracts is that the time to sue for breach of an oral contract is sometimes shorter. For example, California's limitation is two years for oral compared to four for written, Connecticut and Washington three for oral rather than six for written, and Georgia four for oral instead of 20 for written."

Hope that's helpful. Good luck.

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Hmmm...

by Pringles86 In reply to Is my wife legally obliga ...

If your wife is still okay with splitting the commission but just doesn't want to break the law. Just have her receive the commission in full and a week later, she would let her sister "borrow" half of that amount. If she is letting a relative borrow an amount of money indefinitely it shouldn't be a problem.

This is just my opinion. I am not a licensed attorney.

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Wrong place to seek that answer

by Zen37 In reply to Is my wife legally obliga ...

Shouldn't you be consulting a lawyer? Even if you do get an answer here, who says it`s the right one.

Do the right thing, call a lawyer.

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A contract to break the law is not legally binding

by DelbertPGH In reply to Is my wife legally obliga ...

I don't know if your sister-in-law has any other recourse, but if it is the case in your state that a loan officer is forbidden from passing money to a person whose loan she is supposed to supervise, then she's not entitled to anything under any lawful agreement.

Your wife's job is to watch for the bank's interests, and if she gets into shenanigans sharing money with borrowers, it is hard to distinguish from a conspiracy to defraud the bank. I work for a bank, and I know that if an employee of mine did that, I'd fire her fast and immediately contact compliance and find out what law enforcement agency had to be notified. Depending on your bank, and if loans like this are eligible to be securitized under a government agency, it could be a Federal rap. Not only for your wife, but also for her co-conspirator sister.

If your wife feels obligated to her sister, she should find some other way of being extra nice to her that does not involve the exchange of money.

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