Commercial Real Estate Deal

[shespurdy]

What is the name of your state?undefinedWhat is the name of your state? New York
My husband is selling his property & building and is listed with a Real Estate agent. The agent presented offer's and my husband said yes to one. No binder was signed or anything else. The buyer had an engineer inspection. In the meantime, the Real Estate agent kept presenting offers and my husband decided to go with a different buyer with better terms (not more money). My husband's attorney received the contract and a deposit from the first buyer but my husband has since signed a contract with the buyer with better terms. Now the first buyer says he is suing my husband. He said they have about $30,000.00 invested in this deal already and he wants the property. I always thought that a real estate deal had to be in writing. He should have never proceeded with anything until the contract was signed (title search, mortgage application fee, etc). Can someone please help with this?

[JETX]

Originally Posted by shespurdy

My husband is selling his property & building and is listed with a Real Estate agent. The agent presented offer's and my husband said yes to one. No binder was signed or anything else.

Then no contract exists. In order to be a valid contract for sale of real property, the agreement MUST be in writing. The following is from 'New York General Obligations' law:
S 5-703. Conveyances and contracts concerning real property required to be in writing.
1. An estate or interest in real property, other than a lease for a term not exceeding one year, or any trust or power, over or concerning real property, or in any manner relating thereto, cannot be created, granted, assigned, surrendered or declared, unless by act or operation of law, or by a deed or conveyance in writing, subscribed by the person creating, granting, assigning, surrendering or declaring the same, or by his lawful agent, thereunto authorized by writing. But this subdivision does not affect the power of a testator in the disposition of his real property by will; nor prevent any trust from arising or being extinguished by implication or operation of law, nor any declaration of trust from being proved by a writing subscribed by the person declaring the same.

Now the first buyer says he is suing my husband. He said they have about $30,000.00 invested in this deal already and he wants the property.

If he 'invested' that much into this deal WITHOUT a written contract, it was done at HIS risk.

[shespurdy]

Thank you, that's what I thought. If you also know, can this buyer stop the sale in any way now? Does this also mean that a civil suit will also lose. It was also mentioned that the buyer's real estate agent and the buyer may bring a civil suit against him as well.