Maria submits a written offer to purchase a Des Moines home for $285,000. The seller counters at $295,000. Maria verbally tells her agent she accepts the counteroffer but does not sign any written document. Under Iowa law, is there an enforceable purchase agreement?
Correct Answer
A) No, because Iowa's Statute of Frauds requires contracts for the sale of real property to be in writing and signed by the parties
Iowa's Statute of Frauds, consistent with Iowa Code provisions governing real property contracts, requires that any contract for the sale of real estate must be in writing and signed by the party to be charged. A verbal acceptance of a counteroffer does not satisfy this requirement, so no enforceable purchase agreement exists.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The Statute of Frauds is a legal requirement that certain types of contracts must be in writing and signed to be enforceable. In real estate, all contracts for the sale of land or interests in land must be in writing.
A time is of the essence clause in a contract means that all deadlines and dates specified in the agreement are strictly enforceable, and failure to meet them constitutes a material breach.
An appraisal contingency allows the buyer to cancel or renegotiate the contract if the property's appraised value comes in lower than the agreed-upon purchase price. This contingency protects buyers from overpaying.
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