When you`re purchasing a house, it`s essential to have all the details written out in a contract to protect both the buyer and the seller. However, sometimes a verbal agreement is made, and that can cause some uncertainty and confusion. In this article, we`ll explore what a verbal agreement for house purchase is and what steps you can take to protect yourself in such a situation.
What is a Verbal Agreement for a House Purchase?
A verbal agreement for a house purchase is when the buyer and seller agree on the terms of the sale without a written contract. This typically includes the price, closing date, and any other important details such as repairs that need to be made before the sale. While verbal agreements are legally binding, they can be challenging to prove if the buyer and seller have a disagreement.
What are the Risks of a Verbal Agreement for a House Purchase?
The risks of a verbal agreement for a house purchase are numerous. First, there is no documentation that outlines the terms of the sale, which can lead to disagreements and misunderstandings. Secondly, if anything goes wrong, there is no legal recourse that can be taken without a written contract. This means that if the seller backs out of the deal or refuses to make the agreed-upon repairs, the buyer may have no legal way to enforce the agreement.
How can you Protect Yourself in a Verbal Agreement for a House Purchase?
If you find yourself in a situation where you`ve made a verbal agreement for a house purchase, there are a few steps you can take to protect yourself:
1. Get Everything in Writing
The most important step is to get everything in writing. Even if the buyer or seller is resistant to creating a formal contract, it`s essential to have some form of written agreement. This can be as simple as an email outlining the terms of the sale.
2. Keep Records
If you`ve made a verbal agreement, make sure to keep detailed records of all conversations and agreements. This can include notes from phone calls, emails, or even text messages. Having a record of all communication can help protect you if any disputes arise.
3. Work with a Lawyer
Working with a lawyer can be helpful in protecting your interests. A lawyer can review any written agreements and ensure that all terms are clear and legally binding. They can also help you navigate any disputes that arise during the purchasing process.
In conclusion, while a verbal agreement for a house purchase may seem convenient, it can be risky for both the buyer and seller. It`s essential to get everything in writing, keep detailed records, and work with a lawyer to protect yourself. Taking these steps can help ensure a smooth purchasing process and avoid any legal or financial issues down the road.