I have to share from my own experience of selling my own home. I trusted the family that purchased my home to my demise. You cannot leave anything to chance. EVERYTHING must be in writing! While you feel you can trust people, they will turn on you in a second and get an instant case of amnesia of what they promised they would do. Had a friend not stepped in at the last minute after my oh-so-trusted buyer kicked me out of my home because his circumstances changed and had an instant case of amnesia, my new address would have been... Homeless at the Walmart Parking Lot living in a motor home with my large dog and two cats. To everyone, while I miss the days that a handshake was your word and your word was your word, we live in a very self-centered, selfish and corrupt society where people no longer care about other people. People no longer care how they treat or hurt others because it's an "all about me" world. I miss the simpler days for sure! EVERYTHING MUST BE IN WRITING!!!!! I will now exit my soap box... have a blessed day!

By law, all real estate transactions in California must be in writing ("Statute of Frauds"). This not only to protect the buyer and seller, but also all the other parties associated with the transaction, even if that only includes the courts when the contract or parts of it are later disputed.
Regardless, I wouldn't trust anyone with a verbal contract for anything worth more than one cent. But I'm that type of person.

No. In California a handshake means nothing legally for a real estate transaction. There is no disadvantage to putting it in writing and every sdvantage to putting it in writing.

Even with the CAR contract there can still be miscommunications, disputes,.... Don't see an upside and don't see how you can record it which is also a scary proposition. Not with hundreds of thousands of dollars at stake.

The thing about a written contract is that the terms are enforceable in a court of law. The thing about a handshake agreement is that the terms are not enforceable in a court of law.

There's always someone who has a handshake deal that closes, but it wasn't the norm "back then," by any stretch of the imagination.

Inna - you have opened our minds once again. Maybe back in the 1930's - but today, not a chance :-) Be Well...

Hello Inna,

I have heard of such transactions also.
Sometimes it has to do with cash...and a quest for anonimity for the parties...
Yet, it's not something that we would want to get involved as realtors.

The old-fashioned handshake (although it sounds honorable) would be a cause for lots of trouble...

Irina Karan
Beachfront Realty, Inc.
305-904-2355
IrinaKaran@gmail.com

I'm with Janet on this one

Janet M. Nation, CBR, Agent, Baldwin, NY
"I would trust a hand shake when buying or selling real estate anywhere on this planet."

I would however add, 'For as long as I can hold my breath. That is the time you have to present it in writing." Yep, I think I could do it with a strait face. On a good day that is about 100 seconds.

100% NOT! No contract--no deal.

Not even if it was the POPE!

Not only do contracts have to be in writing via the "statute of frauds" but do not expect that just because something was said that it is also included in the written contract. Most contracts have a merger clause which invokes the parol evidence rule which states that the only elements of the contract to be enforced are those found within the contract. Granted I am not a lawyer and any questions ard strategies should be discussed with an attorney.

I would just add that even if the handshake was in good faith and no one intends to violate it, the parties may remember it differently. Apart from a written contract making it enforcable, it also memorializes it so that both parties are agreeing to something that won't be later remembered/interpreted differently. In other words, there is more than just the trust factor involved.

Inna, all real estate transactions have to be in writing. You might be in a procuring cause situation. Check with your local real estate association and your broker, they should give some advice.


Good luck,

Lee

I complete a hand shake transaction in Ohio about 15 years ago! It went great! However, things have changed and now I am in California. Thus, we must live by todays restrictions and guidelines as not all people are capable of hold to their word. I do however trust in mankind, it is just best to back it up with something in writing. Well, and it is the law for California!

Real Estate is the only transaction where verbal contracts are not legally binding. Protect yourself!

No. Needs to be fully executed by all involved parties. There are far too many details in a transaction to have a clear picture of who accepted what. Many times a person is fixated on one term, like price, when the other party hears that but is more fixated on terms like being vacant... small details can slip through the cracks and it will blow up in their respective faces..

I trust handshakes but I want the purchase contract and loan application in writing, signed and dated.

At 66 years old I have to say that gone are the days of handshakes and doing deals on a bar room napkin albeit I've actually done a fair share of biz on the 19th hole after tossing back a couple of cool ones.

But unfortunately in today's very man-eating social environ and with the "Statute of Frauds" requirements as John so aptly pointed out those days are long gone. Add to that California's infamous "lawsuit-crazed mentality" those options are forever off the table.

Of course having said all the above I guess if you're a drug or arms dealer you could probably figure out a way to do it. LOL!

Dear Inna,

My lawyer always says....if you don't have it in writing...you dont' have it. Handshakes are nice and friendly but they won't hold up in court.

Regardless of the location, anything short of a written and accepted contract, will carry no legal weight.

I on the other hand believe in a persons word and would stand behind both it and a hand shake come hell or high water......call me old school, it's OK!

Yes, ONLY in writing!

I want to add a story.........not probably related, but reading about Jamie experience, i"d like to add it here.....:
My grandparents owned a little business in a little town. They knew every single one and all about everyone in that small community. I remember hearing : "That man's as good as his word," "if she says it, you can take it to the bank," etc.
I grew up with : "your word is your honor".
And I teach my kids that way.

RE contract must be in writing, but if someone promises something, they should honor that.


Don't promise if you are not going to do it!

I would not trust a hand shake when buying or selling real estate anywhere on this planet.

in one word...no. no verbal agreements will be honored if there is a dispute over price, length of settlement, etc.

A contract is not valid unless it is in writing.

Hey Inna,

No way! It needs to be in writing!!

Monique Carrabba
The Carrabba Group
Keller WIlliams Hollywood Hills
mcarrabba@kw.com
(323) 899-2900

Handshake good for maybe 2 hours tops, then get it in writing.

I don't look back on this same Trulia thread for answers posted after mine.

EmilyKnell1@yahoo.com
562-430-3053 c
Realtor Since 1996
Main Street Realtors

I think get EVERYTHING in writing and signed by both parties.