Over the years you may have signed an agreement to purchase something of value. It could have been a vehicle, boat, business, equipment or other items of value. You may have also entered into an oral agreement of some sort with a neighbor, business partner, customer or the like. In some cases the oral agreement are legal and enforceable and in other cases it may be been a comment instead of an agreement that is not enforceable. If you watch TV at all you may have seen episodes of Law and Order, Judge Judy or some other legal show that talks about contracts.

In Michigan, oral contracts or agreements are not valid when it comes to real estate. Contracts dealing with real estate must be in writing according to the law. The reasoning behind this law is to prevent disputes between parties or claims of fraud that could arise from verbal communication.

When people communicate verbally things are sometimes said that are incorrect, meant to be funny or said in the heat of the moment and cannot be taken back. Other times verbal communication is taken out of context or the other party may have misinterpreted what was said. This is why it is imperative to put anything in regards to real estate in writing. Be as clear and concise as possible to prevent ambiguity or you may end up in court and the judge will decide who is correct in the interpretation.

One of the reasons to hire a real estate professional is to help when it comes to the writing of the contract. Most real estate agents belong to the local and state real estate association and have standardized forms to use to help prevent confusion. Here in Kalamazoo, our local real estate board has forms available for members to use. They have been prepared by a real estate attorney and are continuously reviewed so they stay updated with changes in the industry, state and local laws. Not all situations can be prevented with a standardized form prepared by a real estate attorney however. 9 times out of 10 it will make the agreement very clear and straightforward enough that all parties to the contract understand the meaning behind the offer or counteroffer.

When writing an offer to purchase real estate, remember to be clear, concise and straight to the point. If you don’t understand the way something is written there is a good chance the other party involved will not understand either. This is why it is important to communicate with your real estate professional because they understand the industry, they know what the forms say and they are a third party to help you communicate your point of view to the other party involved.

Tell us about a situation you were involved with that turned out great or poorly due to the wording of the contract so we can all learn from each other.

Joy Watts
Watts Realty Team
5071 Gull Road
Kalamazoo, MI 49048 
www.WattsRealtyTeam.com