The recent Tennessee Association of Realtors Newsletter had in interesting Hot Line article. I’ve run into this question in the past. The answer may surprise you.
Email Acceptance from the Agent?
QUESTION: If an email is received from an agent stating their seller-client accepted an offer, but the seller has not yet signed the document, is that contract enforceable?
ANSWER: Probably not. Pursuant to the statute of frauds, a contract for the sale of real estate must be in writing and signed by the party against whom it is enforced. There have been some rare instances in which numerous documents have been introduced which have been held to create a binding agreement when they are viewed together. This is a rare occurrence though. In addition, the 2014 Purchase and Sale Agreement states on lines 343-346:
“It is hereby agreed by both Buyer and Seller that any real estate agent working with or representing either party shall not have the authority to bind the Buyer, Seller or any assignee to any contractual agreement unless specifically authorized in writing within this Agreement.”
This means that an agent cannot bind their client to a contract unless the parties have agreed that the agent has the power to do so. If you have a situation such as this, we would advise your clients to speak with their own attorney.
[SOURCE: TAR’s Legal & Ethics Hot Line Attorneys]
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