Susan is a licensed Virginia salesperson representing a buyer. The buyer makes an offer on a property, and the seller counters at a higher price. The buyer verbally agrees to the counter-offer price over the phone with Susan, but has not yet signed the counter-offer document. The seller's agent calls Susan to ask if there is a binding contract. What should Susan tell the seller's agent?
Correct Answer
C) No, there is no binding contract because real estate purchase agreements in Virginia must be in writing and signed by the parties to be enforceable
Under Virginia's Statute of Frauds (Va. Code § 11-2), contracts for the sale of real property must be in writing and signed by the party to be charged in order to be enforceable. A verbal acceptance of a counter-offer does not create a binding, enforceable purchase contract in Virginia. The buyer must sign the counter-offer document for a ratified contract to exist.
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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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