Real Estate Law
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If the property is deeded to you so that it is your property than the appliances that are in the property belong to you as well. The family has no LEGAL claim to the washer. It is up to you to do with it what you want.
I am sorry that your father in law took advantage of you. It doesn't sound like he has much money. So suing him over the damages may not be worthwhile if he has nothing to collect.
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