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Boston real esate agents: A warning about emails sent to buyers or sellers

A real estate firm is being sued for the breach of contract after a court ruled that a contract was formed via an email.  In an email, a real estate broker granted a potential buyer a first right of refusal on piece of property.  When it was sold to another buyer for $2 million more, the first buyer filed suit and won. The case is currently in appeal.

BE careful when clicking “send.” That is essentially the message to brokers and their clients from a state court, which ruled recently in a real estate dispute that e-mails can carry the same weight as traditional ink-on-paper contracts.

Read the entire email contract story in the New York Times here.

This didn’t take place in Boston, but I’m sure someday there will be as the courts try to sort out the role of email, which has become the primary form of daily communication for buyers, sellers and their real estate professionals.

Read other posts about: Boston real estate condos news

5 Responses to “Boston real esate agents: A warning about emails sent to buyers or sellers” »»

  1. Comment by Funny | 02/20/11 at 10:25 am

    Sounds more like an issue with practices, than a internet issue. The realtor seems to have initiated a contract, then tried to rescind it when they learned of a better bottom line deal.

    There no reason, just because it was over the net, it shouldn’t be valid, unless I’m missing something.

  2. Comment by anon2 | 02/21/11 at 3:01 am

    So you’re saying that when you make promises, be sure to do it verbally so that you can break them later without the other party being able to prove it? I’m with Funny on this – the only thing that email adds to the equation is that it allowed the broker to be caught. Better to just make a practice of not lying or reneging on promises than to avoid email.

  3. Comment by John Ford | 02/21/11 at 4:38 am

    Annon2, I’m not saying that at all. My position is the same as yours and funny, if you say something verbally than you should live up to your words.

    I referenced a newspaper article because in the “eyes of the law” a real estate transctions must adhere to the statue of frauds that stats it must be in writing. What makes this unusual is that up until now it wasn’t made clear whether a email transaction has the same weight as an offer wriiten by a lawyer. Actually I support the lower courts ruling and I hope the ruling withstands the appeal process.

  4. Comment by Funny | 02/21/11 at 10:03 am

    Verbal contracts, in the eye of the law, carry the same weight.

    The problem then becomes proof, with he said she said bickering.

    If you make an offer or sign your name to anything, know that the law is going to keep it’s eye firmly on what the document says, email or handwritten scribble.

    Lesson learned: Think before you type, and read (AND understand) before you sign!

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