Seller Backs Out of Verbal Agreement

[StiffedBuyer]

I recently agreed to buy a home directly from the homeowner, bi-passing the use of a broker (and his fees). We had a verbal agreement on the exact price. I opened escrow, paid for the appraisal on the property, and proceeded to find renters for my current property. However, at this point, nothing had been signed by the seller. The escrow company wanted to get together to meet with the two of us, so they could get instructions out ASAP. 2 weeks before the close of escrow, the buyer told me that he got another higher offer and was pulling our deal off the table. Both my financial lender and escrow received the verbal understanding from the buyer that this was a done deal at the agreed upon price. But the buyer is saying that since he did not sign anything, he's not obligated to sell me the property.

My questions are, can I do anything at all legally? Is this verbal agreement binding by law? If not, can I sue him for at least the appraisal and documentation fee that I paid during the escrow process in small claims court? Should I just drop this issue?

 

[I AM ALWAYS LIABLE]

<BLOCKQUOTE><font size="1" face="Verdana, Arial">quote:</font><HR>Originally posted by StiffedBuyer:
I recently agreed to buy a home directly from the homeowner, bi-passing the use of a broker (and his fees). We had a verbal agreement on the exact price. I opened escrow, paid for the appraisal on the property, and proceeded to find renters for my current property. However, at this point, nothing had been signed by the seller. The escrow company wanted to get together to meet with the two of us, so they could get instructions out ASAP. 2 weeks before the close of escrow, the buyer told me that he got another higher offer and was pulling our deal off the table. Both my financial lender and escrow received the verbal understanding from the buyer that this was a done deal at the agreed upon price. But the buyer is saying that since he did not sign anything, he's not obligated to sell me the property.

My questions are, can I do anything at all legally? Is this verbal agreement binding by law? If not, can I sue him for at least the appraisal and documentation fee that I paid during the escrow process in small claims court? Should I just drop this issue?<HR></BLOCKQUOTE>


My response:

Your seller is absolutely correct. Sounds like he got good legal advice; something that you should have done. Contracts for Real Property, and any contract with a value of $500.00 or more, that is not contemplated to be completed within one year, must be in writing, or they run afoul of the "Statute of Frauds."

Good luck in finding new digs, and make sure that if you intend on "bypassing" the agent, that you at least have an attorney on your side to review all the papers, before you sign on the dotted line.

IAAL


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