Posted by
Josh Harris

Is my client bound to perform if they agreed to sell a property to buyer at a specified price through text message?

No additional information is provided.

Post an Answer
Report Abuse:
Click Here
Asked by
REALTORS®
Status
Open

Is my client bound to perform if they agreed to sell a property to buyer at a specified price through text message?

By Josh Harris   
Posted on Jun 28, 2021 in Topic: General
Add to Favorites
 
No additional information is provided.
Status: Open
Viewed: 7456
Asked by: REALTORS®
Posted: 1 year ago
Topic: General
Report Abuse: Click Here
Bronze
Amanda Seidel
about 1 year ago
It depends. It would have to satisfy Statute of Frauds to be legally binding. All terms in writing and signed. I'll post a link to a case where it was binding in source info, below.
TAR says, ". If the parties agree to conduct a transaction through electronic communications, and if all of the elements of a contract and the statute of frauds are met, there can be a binding transaction through electronic communications"


Source:


https://www.mooreandlee.com/2021/02/can-a-text-message-form-a-binding-contract-in-at-least-one-court-yes/\n\nhttps://www.texasrealestate.com/members/communications/texas-realtor-magazine/issues/july-2018/can-an-email-or-text-message-chain-be-a-legal-contract/\n


about 1 year ago
Silver
Kiriaki Koymarianos
about 1 year ago
It depends. Was this the only form of communication?


about 1 year ago
Bronze
Lucy Alvarado
about 1 year ago
Why is the buyer contacting your seller directly? I would think it’s void because even though the seller has the final word there is a contract where the negotiations will be handle by their agent.


about 1 year ago
Bronze
Stephony Garrett
about 1 year ago
It depends on how the message was relayed. If they mentioned that they accept a certain price and will provide a contract to support the negotiated price and then a better offer comes in, the Seller may decide to go with the newest offer. It is my understanding that an executed contract is more binding than a text message that agrees to a price because a contract includes all terms off the transaction, whereas a text message probably only addresses the price.


about 1 year ago
Bronze
Kimberly Perez
about 1 year ago
Unless all your answers, so far, have come from lawyers, the seller really needs to speak with an attorney.


about 1 year ago
Bronze
Dinah Wicker
about 1 year ago
I just went through this myself. All offers have to be given to the seller. If there is no signed contract, the seller should be able to accept another offer. Good intentions don’t make a valid contract- it has to be in writing with all items checked and signed by both parties.


about 1 year ago
Silver
Arfacxad Cabrera
about 1 year ago
At this piont I advise for your Seler to speak to an attorney for advice.


about 1 year ago
Bronze
Lisa Hoogenboom
about 1 year ago
I would advise calling the HAR legal hotline for this question. (800) 873-9155 ...


about 1 year ago
Bronze
Barbara Trammell
about 1 year ago
It depends. You need to speak to your broker. Also, I recommend using the form "Seller's Invitation to Buyer to Resubmit" as opposed to responding to anything by text. If you have not seen this form yet, don't feel alone. Most agents I speak to have never heard of it. Regardless, what's nice about it is that it provides the opportunity for the seller to tell a prospective buyer what they would like to see changed on an offer while at the same time making it clear it is not a negotiation and the seller is free to accept another offer in the meantime.


about 1 year ago
Bronze
Melba Aguilar
about 1 year ago
He may have agreed to a price, but if he hasn't agreed to all the other terms in a contract, how is he committing himself? Without a signed contract how is he committing to the rest of the conditions?


about 1 year ago
Bronze
Irena Gorski
about 1 year ago
Why your client communicated with buyer directly, not through you if you are his (Seller's) agent? Does buyer has an agent representing him?
Your client would probably have to contact real estate attorney.


about 1 year ago
Platinum
James Meador
about 1 year ago
Hi Josh!

First and foremost, you should advise your client to consult a real estate attorney. Your client could be legally bound to perform if certain criteria are met. Here is a link to a case involving real estate where the seller was found to be legally bound to text messages. The buyer would have to pursue legal action, of course. But this is a great lesson to us all to be very careful with what we put in ANY digital forms of communication. In this case, money was exchanged, so I don´t know if that made a difference or not. Consulting with a real estate attorney would be the best thing to do. I saw someone posted about the HAR legal hotline...that is a great resource.

https://www.mooreandlee.com/2021/02/can-a-text-message-form-a-binding-contract-in-at-least-one-court-yes/


Source:


https://www.mooreandlee.com/2021/02/can-a-text-message-form-a-binding-contract-in-at-least-one-court-yes/


about 1 year ago
Bronze
Gail Earle-Rodriguez
about 1 year ago
I recommend utilizing the expertise of an agent to educate and help you in the buying and selling process.


about 1 year ago
Bronze
Peter Wright
about 11 months ago
If there is a dispute, I agree with speaking to a Real Estate Attorney to have it reviewed. Also be sure to get your broker involved. Most importantly, avoid overstepping your duties and entering into the realm of law. From Texasrealestate.com:"Texas law, specifically the Texas Uniform Electronic Transactions Act (UETA), allows the use of electronic records and signatures in real estate transactions. Here are some answers to questions about this area of the law." "There have been no cases applying UETA to text messages. However, a text message should be treated in the same manner as an email. A graphical representation in a text message evidencing a party’s intent to sign the record could satisfy UETA and create a binding contract." "It’s a good idea, if you’re communicating through electronic means, to be clear about whether or not you intend to conduct transactions electronically, as discussed below."


Source:


https://www.texasrealestate.com/members/communications/texas-realtor-magazine/issues/july-2018/can-an-email-or-text-message-chain-be-a-legal-contract/#:~:text=But can your clients end,signatures in real estate transactions.


about 11 months ago
Silver
Pauline Clement
about 11 months ago
I certainly agree that an attorney should be consulted. This answer can be varied depending on several factors of which were brought up by other responses to this question. If the realtors weren't the parties communicating this, and if one party has now changed their mind, was this change of mind due to time lapsing or due to no consideration given or other? Either way, however, often a realtor's specific communication with another realtor on intent and getting to the bottom of what each party ultimately wants to achieve may help.


about 11 months ago
Bronze
Abbas Naqvi
about 11 months ago
A text message can be considered legally binding under the E-sign act. Generally, contracts that include an offer, consideration, capacity to contract, and acceptance, are deemed valid by the courts. At the end of the day we are not attorney's, I would advice your client to consult an attorney to get an amicable resolution.


Source:


https://www.fdic.gov/resources/supervision-and-examinations/consumer-compliance-examination-manual/documents/10/x-3-1.pdf


about 11 months ago
Diamond
Anthony Taylor
about 11 months ago
I will not depend on it, but in the future just make sure it's in writing if you want get paid. A contract is the only way to go and it's a much safer way to go you and your clients.

I hope my many years of advice will help you stay in this career?

Thanks
Anthony Taylor Realty


about 11 months ago
Bronze
Peggy Renee Ferrell-Sharp
about 10 months ago
It is not necessarily binding because the terms are not spelled out. A written contract with terms like the 1-4 Residential Contract is the best way to be clear of the terms, conditions and performance of both Seller and Buyer. A licensed real estate agent can help in this area as well as an attorney.


about 10 months ago
Bronze
Richard Ortiz
about 10 months ago
Anything in writing can potentially commit you to performing. This is an issue where legal counseling should be sought.


about 10 months ago
Bronze
Speak to a licensed real estate attorney for guidance.


about 9 months ago
Bronze
Leah Dinsmore
about 8 months ago
Was your seller contacted directly by the buyer? If so I wouldn’t think it would be binding since you represent the seller. The seller could ask for your advice after speaking with the buyer and can back out. You’d need a signed purchase contract for it to be binding.


about 8 months ago
Diamond
Veronica Mullenix
about 6 months ago
The Texas Uniform Electronic Transactions Act (UETA) has outlined details that create digitally binding contracts. To satisfy the statute of frauds and UETA, generally the text, or an email, would have to be electronically signed by the buyer and seller, or a power of attorney for the buyer or seller. There are several variables that are required by UETA to establish a binding contract; and here is a link to a series of Q&As on this topic. https://www.texasrealestate.com/members/communications/texas-realtor-magazine/issues/july-2018/can-an-email-or-text-message-chain-be-a-legal-contract/


Source:


https://www.texasrealestate.com/members/communications/texas-realtor-magazine/issues/july-2018/can-an-email-or-text-message-chain-be-a-legal-contract/


about 6 months ago
Bronze
Mohammed Sarkar
about 5 months ago
No,


about 5 months ago
Disclaimer: Answers provided are just opinions and should not be accepted as advice.
Advertisement
Advertisement

Find a Pro

Search Real Estate Professionals

AVM AD
Advertisement