Real Estate Contract Verbal Agreement

Real Estate Contract Verbal Agreement: Is It Legally Binding?

When it comes to buying or selling a property, the most important document you will need is a real estate contract. A real estate contract is a legally binding agreement between the buyer and the seller. It outlines the terms and conditions of the sale, including the purchase price, the closing date, and any other important details. But what happens if you make a verbal agreement with the other party instead of putting everything in writing?

Verbal agreements in real estate are generally not enforceable. In most states, real estate contracts must be in writing to be legally binding. Verbal agreements are considered to be too ambiguous and too difficult to prove in court. If you make a verbal agreement with the other party, it is essentially your word against theirs. This can lead to confusion and disputes down the road, especially if the agreement was made in a hurry or without the guidance of legal professionals.

There are some exceptions, however, where verbal agreements may be valid. For example, if the parties have a long-standing relationship or have worked together in the past, a verbal agreement may be considered enforceable. In addition, if the buyer has already paid a deposit or made other significant investments in the property, the court may consider this as evidence of a verbal agreement.

But in general, it is always best to put everything in writing. A written contract provides clarity and specificity, and it ensures that both parties are on the same page. It is also a way to protect your interests in case of any future disputes or legal proceedings.

If you are unsure about the legal validity of a verbal agreement, it is always best to consult with a real estate attorney. They can review the details of the agreement and advise you on your options. They may suggest that you draft a written contract to ensure that all the terms and conditions of the deal are clearly spelled out.

In conclusion, while verbal agreements in real estate may seem like a convenient option, they are generally not legally binding. It is always best to put everything in writing to protect your interests and ensure a smoother transaction. If you have any questions or concerns about a verbal agreement, don`t hesitate to seek the advice of a real estate attorney.