After a residential real estate contract is signed by both parties in Illinois, the buyer and seller verbally agree to change the closing date. Is this oral modification enforceable under Illinois law and practice?
Correct Answer
C) No. Material changes to a signed real estate contract must be made in a written amendment or addendum signed by all parties to be enforceable.
Option C is correct. Under the Illinois Statute of Frauds (740 ILCS 80/2), contracts for the sale of real estate must be in writing to be enforceable, and this requirement extends to material modifications of those contracts. An oral agreement to change a closing date or other material term is generally unenforceable because it lacks the written form required by law. Standard Illinois contract practice requires that all changes be documented in a written amendment or addendum signed by all parties, both to satisfy the Statute of Frauds and to avoid disputes about what was actually agreed upon.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An inspection contingency gives the buyer the right to have the property professionally inspected within a specified time frame and to negotiate repairs or cancel the contract based on the findings.
Liquidated damages are a predetermined amount of money specified in the contract that the non-breaching party is entitled to receive if the other party breaches. In real estate, the earnest money deposit typically serves as liquidated damages.
Novation is the substitution of a new contract for an existing one, or the replacement of one party with a new party, with the consent of all parties involved. The original party is completely released from all obligations.
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