A house owner promises a pal FIRST OPTION to buy it. What does that mean in law?

Answer 1

its a promis, a promis is not a legal contract, its more of a favour.

Answer 2

I'm sorry, but I'll probably restate some of the opinions here. Yes, it does hold water in a court of law, whether or not it's in writing. Even in the US, verbal agreements are contracts and can be upheld in a courtroom.

The first option means that the "pal" has the first right to purchase the home. If the home is on the market for sale right now, and the seller gets an offer, he/she must offer it to the "pal" first. If the "pal" cannot purchase the home, or refuses to purchase the home, the homeowner can sell to the other party - but, I'd strongly recommend getting the refusal from the "pal" in writing, just in case this "pal" comes back in 6 months and says "I didn't refuse to buy."

Answer 3

Assuming its written down and witnessed, then a Contract is created (actually, a verbal agreement is also a Contract, however it would be very difficult to prove, especially if the owner claimed that the pal later said he was no longer interested)

If the owner wishes to sell, he must first offer it to the pal (at a commercial price, to be agreed between them, hopefully as detailed in the Contract, eg. the 'average' of two or 3 valuers).

If the pal is unwilling (or unable) to buy, then the Contract is satisfied and the owner can put the house on the market and sell it to some-one else.

Should the owner sell without offering to the pal first, the pal will have a claim on the owner .. (it is very difficult to quantify exactly what monetary compensation the pal could claim .. perhaps the difference in cost between what the house sells for and the price of an 'equivalent' house (assuming the 'equivalent' is more expensive) plus compensation for 'disappointment' (in USA = in UK, you usually have to prove you have suffered some actual loss eg. doctors/hospital bills showing treatment for stress or whatever)

Answer 4

Depends - case law in the UK has agreed that a verbal agreement is a contract and so the pal could have cause to claim against the person making the promise.

BUT, it would be difficult to prove unless there were witnesses to the agreement.

So, basically to answer your question - it could mean something OR nothing.

Answer 5

In this case, provided that the house owner is English, then there is a contract. This is because an Englishman's word is his bond - or at least, it should be. The law should not have to come into this at all.

Sadly, however, one sees too many instances these days of this type of agreement not working as it should. Better to draw up a written contract, with witnesses.

Answer 6

We just did this with a house next door. The owner set a price and gave us a couple weeks to get the money together to meet that price. Until that time, he didn't take any offers from anyone else. If we had said, No Way, he would have opened the bidding up to others that were interested in the property. We didn't get into a bidding war with anyone, we just had to meet the set price.

Answer 7

I dont think it stands for anything, if the pal makes on offer then the owner of the house doesnt have to accept that offer.

Answer 8

Steve B's answer is best except that if your in the United States all real estate contracts must be in writing. Yes, a verbal contract can be made for other things but not real estate. So if there is nothing in writing, you've got nothing.

Answer 9

Quite a lot in Scotland I would think. But not much under English law as house purchase is always subject to contract and survey. (This is my opinion).

Answer 10

Not a lot, what are you going to do if they don't honour it, sue them.

Get real, if it is a pal no problem but money is the root of all evil so they say.

Good Luck

Answer 11

I would say it depends where you live, i live in Scotland and the laws are different here from England. Check them out