Get it in Writing

Dated: January 8 2021

Views: 43

Verbal offers, verbal counteroffers, verbal acceptances, verbal agreements are not worth the paper they are written on! You’ve probably heard some version of this statement before. It encompasses a very basic rule, which is sometimes forgotten. And, forgetting this rule can result in a very expensive education. Failure to get agreements in writing can result in lost properties, lost sales, lost commissions, lawsuits, and complaints to the Cincinnati Area Board of Realtors.

The statute of frauds requires that all real estate contracts be in writing. When working with offers and counter-offers, a contract can be lost when verbal agreements are made regarding the details of a proposed contract and another offer comes in (in writing) that is more desirable to the seller or the buyer finds another property.  Conversations, where offers and counteroffers are discussed, are just that – conversations. Until all sellers and all buyers actually sign and initial the offer (counter), either party can change their mind.

To avoid confusion and possible liability, remember… verbal offers, verbal counteroffers, verbal acceptances, verbal agreements are not worth the paper they are written on! It is prudent to explain this to your clients (and heed the advice yourself). When the buyers, sellers, agents, and brokers you are working with agree in writing to all terms, you will face fewer problems. And, is some cases, such as the purchase agreement, the written agreement is mandatory.  

 

Cindy Henninger

Director of Professional Services

Cincinnati Area Board of REALTORS®

Blog author image

Michelle Meenach

Cincinnati’s Top 3% | Sr Sales Vice President | selling Fast for Top Dollar | from Neighborhood to Luxury, I'll help you find the Home you Love As your Realtor, I bring a breadth of experience and ....

Latest Blog Posts

Median Sold Price Increase Puts Pressure on Housing Affordability

Interest rates continue to remain around 3%, according to the National Association of REALTORS® (NAR). Condo prices lead the way with prices up 18% from the same time last year,

Read More

SHOULD YOU HIRE MOVERS OR HANDLE IT YOURSELF?

Moving presents a host of choices. For example, in the course of preparing for the transition, you will need to determine which real estate agent to hire, which house to buy, and what items you

Read More

What to Know About Today's Busy Market

You’re probably well aware that the real estate market is more competitive than ever (due to low inventory, among other things).Still, it’s not a bad time to buy a house. Mortgage rates

Read More

Why Agents Who Cut Commission Could Cost You MORE!

6 Reasons Why Real Estate Agents May Reduce Their Commission, and Why It Could Cost You Plenty1.  They need the business. In today's competitive market some agents are offering to cut their

Read More