When can a verbal agreement in real estate become problematic?

A verbal agreement in real estate can become problematic particularly when there is a disagreement about the terms. This situation often arises because verbal agreements can lack clarity and specifics that written contracts typically provide. Without a formal document, each party may have a different understanding of the agreement, leading to disputes. Misinterpretations or forgotten details can further complicate the situation, making it difficult to enforce the agreement or to resolve conflicts if they arise.

While trust between parties, verbal conditions, or lack of documentation can contribute to issues, the most critical moment for conflict is when each party has a differing perspective about the terms that were allegedly agreed upon. This highlights the importance of having clear, written contracts in real estate transactions to ensure that all parties have a mutual understanding and to provide legal recourse should disagreements occur.