legal rights?

Question

If I was going to buy a property privately and the seller was getting the contract typed up hence we had not yet signed it and the seller sold to someone else for a higher price through the real estate what are my legal rights?

Answer 1

While on the fact of it you had an oral contract to buy the property, it sounds as though you had not yet given any consideration to formalise the contract. Consideration would normally take the form of a down payment to show that you were serious in your intentions. Had you handed over payment in this way, it would be easier to demonstrate that there was a contract between you. However, sometimes contracts stipulate that they will not be enforceable until set down in writing and signed between the parties, so even had this been the case, without any documentary evidence you would probably not get anywhere in enforcing your claim against the other party.
The matter would be more clear cut if you had some option to buy which gave you priority over other people and had been denied your right to exercise this. However, it you are simply an ordinary individual, a man or woman in the street, who came to an informal agreement to buy the property, then I think that without any documentary back-up and payment of consideration, you just have to shrug it off and look for another property.

Answer 2

The buying and selling of real property is under the Statute of Frauds; meaning there has to be a writing in order for the transaction to be binding.

However, if you made a deposit, then you should get it back.

Interesting to note is that if the other buyer had no actual or constructive knowledge of a real estate transaction between you and the seller (i.e. the paperwork for change of title had not been recorded); and that buyer paid value for the property, that buyer would still get the property; however, you could still sue the seller for damages.

Good luck!

Answer 3

In most states, verbal agreements for the sale of real property are not binding.

Unless you paid separate money (such as a deposit) for the seller to hold the offer open to you (called an option contract), then until there was a written agreement, there was no contract.

All laws vary by state. Check your local listings.

Answer 4

Under property law in Australia, sale of property must be in writing. Therefore even if you had a verbal agreement, providing you have not signed anything, your rights have not been breached.

Answer 5

its your legal right to get into a bidding war and up the offer to beat out the other guy