Sarah and Tom enter into a verbal agreement for Sarah to purchase Tom's residential property in Omaha for $285,000. Tom later refuses to sell. Sarah wants to enforce the agreement. Under Nebraska law, what is the most likely outcome?
Correct Answer
D) The agreement is unenforceable because Nebraska's Statute of Frauds requires real estate contracts to be in writing
Nebraska's Statute of Frauds (Neb. Rev. Stat. § 36-105) requires that any contract for the sale of real property must be in writing and signed by the party to be charged. A verbal agreement for the purchase of real estate is unenforceable regardless of the purchase price or the number of witnesses, so Sarah cannot compel Tom to sell.
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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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