Is a verbal agreement legally binding in real estate ?

When it comes to real estate deals, many people assume that a written contract is necessary to make an agreement legally binding. However, what about verbal agreements? Are they worth the risk?

According to Indian law, verbal agreements are not legally binding in real estate transactions. All real estate transactions must be in writing. Only offers made in writing and signed and accepted by both sellers and buyers are legal.

Hey pal,

Have you ever agreed to an agreement verbally? Have you ever joked about gifting or giving your property to someone in a verbal manner? Is an oral agreement legal in nature? Just like you, I have wondered about these questions. After consideration and speaking to experts, I came across the answer to these queries. Let's get started. 

According to my research, verbal agreements aren’t valid in real estate. They are not legally binding i.e. if you have agreed to an agreement orally, the law cannot enforce the agreement terms. For an agreement or contract to be legally enforceable, it needs to be written and signed by both the parties involved. 

No, the verbal agreement is not binding for the buyer or the seller in a real estate transaction. If there are elements like lawful confirmation and lawful purpose in the written contract then, the agreement is binding. 

 If you are still confused about are verbal agreements binding? Take a look at the next paragraph. 

Many times people meet a builder and instantly agree to purchase a flat. Later on, they think ‘is a verbal agreement legally binding in real estate ?’. Only when the terms mentioned in the agreement are completed or represented clearly, it will be legally binding. If elements are missing, the court will rule the agreement to be void. 

It is not  important which party makes the offer unless everyone involved accepts the terms of the agreement. Both the parties also need to sign the paperwork in presence of witnesses. The deal is not dependent on a simple oral agreement. This ensures that the interest of buyer and seller are presented and protected. It also decreases the chance of fraudulent conduct in real estate. 

This is all from my end on is a verbal agreement binding.

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