A buyer's Oregon broker submits an offer on behalf of the buyer for a Portland condo. The listing principal broker, who also represents the seller, verbally informs the buyer's broker that the seller has accepted the offer. The seller then refuses to sign the written acceptance, claiming no contract was formed. The buyer wants to enforce the agreement. Which of the following is the most accurate statement under Oregon law?
Correct Answer
B) The buyer cannot enforce the contract because Oregon's Statute of Frauds requires real estate contracts to be in writing and signed.
Oregon's Statute of Frauds (ORS 41.580) requires contracts for the sale of real property to be in writing and signed by the party to be charged — in this case, the seller. A verbal acceptance communicated by the seller's principal broker does not satisfy this requirement. Even if the principal broker had authority to accept on the seller's behalf, a verbal acceptance of a real estate purchase offer is unenforceable under Oregon law. The buyer has no enforceable contract and cannot compel the seller to perform.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Earnest money is a deposit made by the buyer at the time of the offer or shortly after to demonstrate good faith and serious intent to purchase the property. It is also called a good faith deposit.
Equitable title is the buyer's interest in a property after a purchase contract is signed but before closing, giving the buyer the right to acquire legal title in the future. The seller retains legal title until the deed is delivered at closing.
A financing contingency makes the purchase contract conditional upon the buyer obtaining mortgage approval within a specified time period. If the buyer cannot secure financing, they can cancel the contract and receive their earnest money back.
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- → A Rhode Island licensee encounters a listing contract is drafted. What should the licensee remember?
- → In Rhode Island, a licensee submits a written purchase or lease offer to an owner. Which statement is correct?
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- → Which Rhode Island rule applies when a listing agreement lists property with a multiple listing service?
- → A Rhode Island licensee encounters a listing agreement lets the principal broker retain a portion of deposit money upon buyer default. What should the licensee remember?
- → A Hawaii licensee is reviewing the commission asks to inspect escrow and trust records. What is the best answer?
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- → For the Hawaii salesperson state portion, interest accrues on a trust-account deposit. Which statement is correct?
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