Buyer David makes a written offer on a home in Rock Hill, South Carolina. The seller, Karen, verbally tells her listing agent that she accepts the offer and to let the buyer know. The listing agent calls David's agent and communicates Karen's verbal acceptance. David begins arranging movers and scheduling inspections. Karen subsequently changes her mind and refuses to sign the written contract. Under South Carolina law, which statement is most accurate?
Correct Answer
C) No binding contract was formed because South Carolina's Statute of Frauds requires real estate contracts to be in writing and signed.
South Carolina's Statute of Frauds (S.C. Code Ann. § 32-3-10) requires contracts for the sale of real property to be in writing and signed by the party to be charged. A verbal acceptance of a real estate purchase offer — even if communicated through agents — does not satisfy this requirement and does not create an enforceable contract. Karen's verbal acceptance, regardless of how it was relayed, cannot bind her to sell the property. No written, signed agreement exists, so there is no enforceable contract.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An option contract gives one party the exclusive right, but not the obligation, to purchase or lease a property at a specified price within a specified time period. The buyer pays option consideration to keep the option open.
A purchase agreement is a legally binding contract between a buyer and seller that outlines the terms and conditions for the sale of real property. It is also commonly called a sales contract, purchase and sale agreement, or earnest money agreement.
Specific performance is a court-ordered remedy that compels the breaching party to fulfill their obligations under the contract rather than simply paying monetary damages. It is an equitable remedy used when monetary damages would be inadequate.
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