One Exception to the Requirement for a Real Estate Contract to be in Writing Is:
In the world of real estate, written contracts are the norm. However, there is one exception to this rule – agreements made through a verbal agreement. While verbal agreements may not be as common or as secure as written ones, there are certain situations where a verbal agreement may be the only option.
The legal principle that governs this exception is called the “Statute of Frauds”. It is a law that requires certain contracts, including those related to real estate, to be in writing to be considered enforceable in a court of law. However, there are a few exceptions to this rule.
One exception to the requirement for a real estate contract to be in writing is when the agreement falls under the category of “part performance.” This occurs when the parties involved have already fulfilled part of the agreement or have made significant changes in their lives based on the verbal agreement. In such instances, it may not be possible to put the agreement in writing due to certain circumstances.
For example, let`s say that a buyer and a seller agree to the sale of a property verbally. The buyer provides a cash deposit to the seller as a show of commitment. The buyer also starts to make improvements to the property, such as painting and repairing. In such a case, the verbal agreement between the buyer and seller can be considered valid even without a written contract, as there is already an element of part performance.
However, it is important to note that the burden of proof lies with the parties involved in demonstrating that part performance has occurred. In most cases, this will involve showing proof of the exchange of money and other significant actions that demonstrate commitment to the agreement.
Additionally, it is always recommended to have a written contract for real estate transactions, as verbal agreements can be challenging to enforce or prove in court. It is best to have a contract that spells out the terms of the agreement, including the sale price, closing date, and any other contingencies.
In summary, while written contracts are the norm for real estate transactions, verbal agreements can still be valid in certain situations where part performance has occurred. However, it is essential to proceed with caution and seek legal advice to ensure that your interests are protected.
