This question sometimes comes up when a buyer has made a verbal offer or a seller has made a verbal offer and then reconsiders things and determines they don’t wish to solidify their offer. When this happens, is it legal?
As with any legally binding contract, you should seek legal advise from an active lawyer versed on real estate law before proceeding with any decisions/actions. However, when it comes to the sale of real property, the Statute of Frauds stipulates that contracts must be in writing in order for them to be enforceable. As such, if the parties involved in the verbal exchange do not have anything in writing to capture their offer/acceptance, then it is likely unenforceable. Keep in mind that even an email capturing the offer changes this as it puts the information in writing making it an enforceable matter. This is why it is so important to keep a written record of all agreements and ensure that it is shared with both parties.
Frequently Asked Questions
Is a verbal real estate offer binding?
Generally no. Real estate contracts must be in writing to be enforceable.
Can a buyer back out of a verbal offer?
Yes, because it is not a binding contract.
When does an offer become binding?
When it is in writing, signed and accepted by both parties.
Related reading: When Concessions Make Sense in Real Estate Deals and Collier County Flood Maps Are Changing: What Naples Homeowners and Buyers Need to Know
