Legal Question in Real Estate Law in New York

Verbal Acceptance - Contractually Obligated?

Last Sunday we placed a bid ($520,000) on a property. Our RE agent submitted the offer to the seller�s broker. The seller�s broker responded with a counter offer saying they would sell the property to us for $550,000. We accepted verbally as this was less than the listing/asking price of $595,000. Our broker told us that it was a 95% done deal. Over the past few days we have been in contact with our lawyer and financial advisor. We have also been in contact with our RE agent working out some of the details of the finances. It�s Friday and we are now having second thoughts about purchasing the place. Basically, we�d like more time to look around. We�re not sure this is the right place for us. We have NOT signed any agreements or contracts at this point. We have a feeling the formal contract will be submitted to us today (Friday) for our review. Can we back out of the process now or are we bound by this verbal agreement? Could they take us to court or impose a penalty fee? What are the laws in New York City regarding the verbal acceptance of an offer? Thanks so much. I look forward to hearing from you.


Asked on 1/31/03, 9:04 am

2 Answers from Attorneys
David Slater David P. Slater, Esq.

Re: Verbal Acceptance - Contractually Obligated?

Oral contracts for the purchase of real estate are unenforceable as per the Statute of Frauds. Relax.

Good luck.

Read more
Answered on 1/31/03, 10:16 am
Walter LeVine Walter D. LeVine, Esq.

Re: Verbal Acceptance - Contractually Obligated?

Verbal (oral) contracts for real estate are unenforceable at law. This is particularly so if no deposit was tendered or binder provided in writing. You should let the broker know you have decided to reconsider, so no time is lost to the seller. Additionally, most states have "cooling off" periods after the contract is signed, during which time the contract can be terminated without reason. Take your time before signing any contract.

Read more
Answered on 1/31/03, 10:20 am


Related Questions & Answers

More Real Estate and Real Property questions and answers in New York