By Kent Berk on September 22nd, 2025 in Estate Litigation, LITIGATION, PROBATE LITIGATION
Real estate and family relationships often mix in complicated ways—especially after someone passes away in Arizona. A recent Arizona Court of Appeals decision, Colon v. Vigil (Sept. 16, 2025), illustrates how informal agreements and unfulfilled conditions can lead to costly disputes and lengthy court battles.
The Case in Brief
Tracy Loretto bought a home in Tolleson in 2003. Six years later, her then-estranged husband, Jose Colon, moved in under a written “House Agreement.” The agreement said Colon would assume the mortgage and take full responsibility for all payments and expenses. In return, Loretto would transfer the property to him once he qualified for a loan or Veterans Administration (VA) mortgage assumption.
But Colon never actually assumed the VA loan. After Loretto died in 2020, her estate—represented by Nicole Vigil—refused to sign over the deed. Colon sued, claiming breach of contract, adverse possession, constructive trust, unjust enrichment, and more.
The trial court granted summary judgment for Vigil, and the Court of Appeals largely agreed. It held that:
- Colon never fulfilled the condition precedent (assuming or refinancing the VA mortgage) required for Loretto to transfer title.
- His occupancy was permissive, so he could not claim adverse possession.
- Equitable claims such as unjust enrichment and constructive trust failed because a valid written contract governed the arrangement.
- The attorney-fee award was sent back for further proceedings because the trial court didn’t explain its legal basis.
Key Legal Takeaways
1. Conditions Precedent Matter
When a contract requires a specific step—such as assuming a mortgage—failing to complete that step can void the promised transfer of property. Courts enforce those conditions strictly.
2. Occupancy Does Not Equal Ownership
Even long-term, exclusive use of property isn’t enough for adverse possession if the use began with the owner’s permission.
3. Written Contracts Can Block “Equitable” Claims
When a valid contract exists, courts generally won’t allow alternative remedies like unjust enrichment or constructive trust.
4. Estate Litigation Is Complex
This case also shows how probate disputes can intersect with real estate, contract law, and bankruptcy, creating a tangle of issues for heirs and claimants.
Why This Matters for Arizona Families
Many Arizonans make informal or incomplete agreements about property—between spouses, partners, or relatives—without realizing how strictly courts enforce contractual terms. When someone dies, those loose ends can spark litigation, delay estate administration, and drain resources.
At Berk Law Group, we focus exclusively on probate, trust, and estate litigation and disputes. We help clients resolve conflicts involving real estate, contracts, and contested inheritances—whether through negotiation, mediation, or court action.
Take the Next Step
If you’re facing a dispute over property ownership, inheritance, or an unclear contract:
- Don’t wait. Deadlines and statutes of limitation can limit your rights.
- Get experienced help. Our Scottsdale-based attorneys bring passion, integrity, and deep probate litigation knowledge to every case.
Call Berk Law Group today at 480.607.7900 or visit BerkLawGroup.com to schedule a confidential consultation.
