I had a verbal agreement to do work on my house while I was waiting for the owner to write up a sales contract

Question

While I waited, I put over $10,000 worth of new stuff in to it. We had an agreement to use the work as my down payment. At the same time, I have paid my rent on time every month. It was two years ago when we agreed it was okay for me to do the work. The price is still the same, don't you think some of my rent I paid while I waited, should be deducted from the price? And the total cost of improvements, can that really be used as "sweat equity" for a down payment, or how would that work?

Answer 1

If you were paying a mortgage instead of rent very little of your mortgage payment would have applied to the principle, maybe a couple hundred.

The only contract that matters in real estate is what you have in writing.

The bank will not look at your "sweat equity" as a down payment.   You need cash for a down payment.

Answer 2

Everything must be in written.   Nothing verbal can be used.   Sweat equity and cost of improvements can not be used for down payment.