To use a metaphor situation for the possible abuse scenario is as follows. If the answer to my scenario is YES then I will continue with the whole story for further evaluation......My question is this: If a person pushes a person off a hypothetical financial "Cliff" so to speak by taking money directly from there bank account they can be held liable for those actions, I know that for sure but what if a close 20yr. long neighbor and friend to an 85 year old woman just stands back and let her walk off that cliff same cliif without helping prevent it from happining and then profit from that fall to the tune of $80,000?
If this ex-city councilman has a reputation he is keen to protect, I don't know, of course, but I'd be thinking of explaining to him that an ex gratia payment of whatever percentage of the net profits seems fair might be something he'd like to consider, before the elderly lady's story goes out as a cautionary tale to others in her position. You need to steer very very clear of threatening him, as such, obviously. But the PR benefit could be worth a fair bit to him without anyone's having to get nasty about it.
The new owner is taking quite a risk, the house would be set too far forward and would need to be moved unless a variance is filed and approved.... and previous electric/plumbing will need the walls opened up to see that it was done to Code. If not done to code, all the electrical and all the plumbing need to be replaced. The attic joists may not be to Code, thus those would need correcting. Maybe the foundation isn't to Code, it would need to be redone.
Usually a home is found to be illegal when someone is trying to purchase the house and a FHA or VA Appraiser inspects the house and notices construction mistakes, and the red flags start to pop up. The new mortgage is declined. The Realtor finds the house is too difficult to sell.
Did the elder owner do the right thing in selling the house? Maybe yes, maybe no. But what elder wants to fight City Hall at their age? It would take years to get everything approved. Easier to take the money and go onto the next chapter of their life.
People throw away vacuum cleaners when the hoses plug up. I retrieve them, clean them, and they work. Does that make me a thief?
Re: the house. The city may allow it to stand, but the banks may still refuse to lend on something that can't be insured because it won't meet codes and there is no occupancy certificate.
He had absolutely no fiduciary duty to mom. None. And, still, he may have spent $9,000 on something he will never even be able to use.
Mom or her family could have done the same thing.
Your mom or her representative could have done the same thing he did. She chose not to. She "found out" from the Realtor. Realtors don't speak for town zoning committees. Properties are grandfathered all the time. The woman's daughter can't reject the deal unless she holds guardianship over mom.
For all you know, it took $20K in legal fees to get the house "legal" . . . and for all you know, mom could've done it herself.
I don't think the guy's broken the law. He took advantage of an opportunity. He had nothing to do with the Realtor telling mom what she told her. Nothing to do with the city council finding in favor of the homeowner. If it's a good ole' boy network, even THAT isn't against the law.
And HOW interesting..!
Have you considered taking the story to the local press?