Legal Question in Real Estate Law in Virginia

Is a verbal agreement to a six month lease legally binding?

My wife and I currently rent and have a one year lease from 8/1/01 to 7/31/02. Last year we decided to build a home, and approached our landlords about the possibility of renting for six months at the end of this lease. This was agreed to verbally (the exact response was ''yes, a six month lease would be fine'') and we proceeded to find a builder and lending institution, have plans drawn, etc. Two weeks before finalizing our financing we were told that, because of the potential negative financial repercussions of trying to find renters in January, we would have to sign a year lease by 7/31/02 or move out by the same date. Do we have any legal recourse to hold them to a six month lease? Also, since we may experience a financial loss (i.e.. losing the tax benefits of writing off the mortgage interest for six months and the possibility of interest rates rising) due to the landlords reneging on our agreement, would they be at all liable for this loss? Thank you so much for your help. It is very much appreciated.


Asked on 2/15/02, 1:47 pm

1 Answer from Attorneys
Daniel Press Chung & Press, P.C.

Re: Is a verbal agreement to a six month lease legally binding?

An oral 6 month lease is valid, but of course the question is one of proof - can you prove the existence of the agreement? "A 6-month lease would be fine" is probably not enough, as it lacks essential terms (amount of rent, for one), and may simply be an unenforceable statement of willingness to sign a written lease, assuming acceptable terms. Of course, even a 1-yr lease would not affect your tax or mortgage situation, as you could still close in January, but you would also be on the lease. However, the landlord would be required to mitigate by trying to find a tenant as soon as you vacated the premises. The best bet, of course, is to try to negotiate a mutually satisfactory deal.

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Answered on 2/15/02, 5:46 pm


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