A Verbal Agreement is Not Worth the Paper It's Written On

By
Services for Real Estate Pros with The Law Office of Mark Tucker

There is the old story about men of integrity who did business with just a handshake. That's fine and dandy, but by contrast, why are there so many silly love songs? I guess the point, as obvious as it is, has not been made quite clear yet. Because language is imperfect, and at times is impressionistic, a well-written contact can help avoid misunderstanding, assumptions, gaps in meaning.

I highly recommend the standard forms used by licensed real estate professionals. Each numbered line represents someone else's painful learning curve and will help the current user avoid the pitfalls of miscommunication. As an attorney, this advice may cost me a lucrative opportunity, but I would rather prevent or resolve a problem that merely stir the pot. 

Use the standard forms, they are there for a reason, and if possible, avoid free-handed addendum's. 

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Location:
Arizona
Groups:
31 Days of January - New Years Resolution
Tags:
use standard real estate forms

Anonymous
Post a Comment
Spam prevention
Spam prevention
Show All Comments
Ambassador
1,341,401
Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
Selling Daytona paradise for heavenly good prices

Mark, but standard contracts may not address some specifics, so why avoid addenda? What is wrong with the addenda?

Actually, here in Florida Addenda supercedes certain provisions of the  contract, and when in conflict, the provision in the Addenda governs...

But hey, I am not an attorney

Jan 25, 2011 10:56 PM #1
Rainmaker
407,620
Karen Monsour
Coldwell Banker Fort Lauderdale Beach - Fort Lauderdale, FL
REALTOR, SSRS - Sells FL Waterfront, Short Sale Expert!

I disagree.  If you have a trustworthy agent - you can do a verbal - read my recent blog...We agreed to an answer last Wednesday at 2pm...just executed the contract today....

As a matter of fact...I have worked with Jon Zolsky and he is another agent that I would trust to do a verbal agreement with.

Jan 25, 2011 10:58 PM #2
Rainmaker
180,527
Brenda Whitman
CENTURY 21 Real Estate Center, Inc., Laramie, Wyoming - Laramie, WY
Associate Broker, Laramie, Wyoming

Hi Mark, that's quite an endorsement of the regular forms we all use - which I'm told in Wyoming (and most places) they are drafted by attorney's anyway.  So for us realtors, most of whom don't hold law degrees, it just makes sense!  Rest assured though, we always advise people to consult an attorney with anything they don't understand so hopefully some of that business comes back to you!

Jan 25, 2011 11:01 PM #3
Ambassador
838,452
Fred Griffin
Frederick Griffin, Licensed Real Estate Broker - Tallahassee, FL
Licensed Real Estate Broker

Verbal Agreements for the purchase of Real Estate in Florida will not hold up in Court.

And, I deflect to you, Counselor - couldn't a Real Estate Agent potentially face a Civil Suit for failing to put something in writing, if such failure resulted in damage to a Client?

Jan 26, 2011 12:09 AM #4
Rainmaker
828,965
Marc Swartz
Toronto, ON
CPA, CA - Toronto, Durham & York Regions, Ontario

Hi Mark - I sometimes have had verbal agreements with certain clients of mine over the years and have had no problems.  Of course, for real estate transactions, written agreements are required.

Jan 26, 2011 12:24 AM #5
Rainer
116,549
Don Barrett
Integrity Real Estate Services - Idabel, OK

How true that is.  Love the title to your post.  A written offer is the only kind! 

Jan 26, 2011 08:47 PM #6
Rainmaker
623,489
Sheila Newton Team -- Anderson & Greenville SC Real Estate
Berkshire Hathaway HomeServices - C. Dan Joyner - Anderson, SC
25 years experience -Residential Real Estate Sales

LOL.. That is true... I'm glad to hear you support the standard forms.. I have heard a lot of attorneys say that it is better to let them write one up... ( and most of those were NOT real estate attorneys!!)...

Feb 08, 2011 08:35 PM #7
Anonymous
Post a Comment
Spam prevention
Show All Comments
Rainer
14,585

Mark Tucker

Ask me a question
*
*
*
Spam prevention