Is a verbal agreement binding on buying a house?
Usually, no. There is a very old legal notion called fraud status. Over-simplified, and as it relates to real estate, this implies that a written document must be available in order to have a binding contract to buy (or sell) true property. The judiciary will not generally enforce oral contracts.
The vendor has three alternatives when a prospective customer makes a written offer to buy a house:
The offer is acceptable, in which case an agreement exists
It is possible to reject the offer.
A counter offer can meet the bid. This implies that the vendor is interested in negotiating with the prospective buyer.
The customer has the same three alternatives if a vendor makes a counteroffer.
Most transactions in real estate are smooth and successful. However, significant conflict between the sides occurs once in a while, and litigation begins. The first thing a tribunal wants to determine is whether a valid agreement exists.
Three fundamental components are needed in order to have a binding legal agreement:
1. An offer: typically a written offer is made by the buyer.
2. Acceptance: This must be written as well. With contemporary technology in latest years, acceptance may be by fax or email. However, to be on the secure side, a written document containing an initial signature should be followed up.
3. Consideration: Consideration is called the third fundamental element of a contract. This is a notion that is elusive. Generally speaking, it is about cash. The purchaser makes a deposit of good faith cash.
But what if the offer doesn't bring any cash down? Does this imply that even if the vendor signs the bid, there is no binding contract? Not really, because consideration can be a value as well. For instance, the customer has stopped searching for another house, there is a binding real estate contract in the belief, and the vendor took the house off the market based on the same faith. Thus, a valid agreement would still exist, although making a good-faith deposit is always wise when you present a buy offer.
The lesson to be taught: write down everything. If you want to transport certain products with the house as a customer — such as the washing machine, curtains or even the lawn mower — make sure that these products are listed specifically in the sales agreement. And on the other hand, if you want to bring some fixtures with you as a vendor, put it in writing.
Don't leave anything to faith — or to verbal promises.
Darryl Baskin
eXp Realty Northeast Oklahoma
101 Park Avenue, Suite 1300
Oklahoma City, OK
918-732-9732
No cost, No obligation assessment: askinforbaskin.com
Sabrina Shaw
The Baskin Real Estate Specialists
101 Park Avenue, Suite 1300
Oklahoma City, OK
918-732-9732
Pamela Wright
The Baskin Real Estate Specialists
CELLPHONE
918-370-2801
EMAIL
[email protected]
WEBSITE
thewrightone.exprealty.com
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