Legal Question in Real Estate Law in California

Verbal Agreement on Real Estate deal

Is a verbal agreement in a real estate trasaction valid? I made an offer to a friend who purchased another property and was preparing to sell his current residence. He didn't want to pay commissions so he passed on the savings to me and I made an offer of $350,000. He accepted. He countered after about an hour or so and wanted $355,000 and said he would meet in the middle. The agreement was $352,500. I started the loan process. He asked me to finalize it within the next 5 days. On the 5th day, when we were to sign papers, he said he took a better offer from his agent who he bought the new home from. The other offer was for $360,000. I want to know if he could be held liable for the verbal agreement he made with me.


Asked on 7/29/04, 11:43 pm

2 Answers from Attorneys
Ken Koenen Koenen & Tokunaga, P.C.

Re: Verbal Agreement on Real Estate deal

Verbal agreements in real estate aren't worth the paper they are written on.

Real estate contracts must be in writing, even if the only thing you have is a piece of paper that states selling price is $325,000 and is signed by the seller.

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Answered on 7/30/04, 12:04 pm
Daniel King Law Offices of Daniel King

Re: Verbal Agreement on Real Estate deal

"verbal" agreements relative to transactions in land, (real property), are NOT enforceable. the law is known as the statute of frauds.

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Answered on 7/30/04, 12:20 am


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