A Real Estate Contract Cannot Be Created Via Text Message Under Florida Law

As technology advances, so does the way we communicate for personal and business purposes. Letter writing largely gave way to telephone calls. After that, email was introduced, and now many people prefer to carry on conversations through text messages. Texting might offer several advantages, but in most contractual matters, the old rules and standards still prevail, especially when it comes to real estate transactions. 

In Florida, the Statute of Frauds requires that certain contracts, including those for the sale of real estate, be in writing and signed by both parties to be enforceable. This law was tested in Walsh III v. Abate 3388 before the Florida Court of Appeal. The litigation arose out of a proposed deal in which a real estate agent sent an email offering to buy a house for $3.1 million on behalf of “Greg Cohen as trustee.” Upon receiving the offer, the sellers countered with a price of $3.4 million, which the buyer agreed to via text message. However, a few days later, the sellers’ attorney informed Cohen via email that the sellers had accepted a different offer.

Cohen believed the text exchange had created an enforceable contract, and sued seeking specific performance in order to restore that deal. Given the absence of any written agreement, the trial court rejected his complaint. The Court of Appeal for the Fourth District agreed, affirming that unsigned text messages and emails do not satisfy the statutory requirements for real estate contracts under Florida Statute § 725.01. The parties seemed to acknowledge this by indicating that the agreement would become effective once both the buyer and seller signed the written contract.

While text messages and emails might be useful to facilitate negotiations, a formal agreement, signed by both parties, is the best way to impose obligations that will stand up in court. Moreover, the contract must contain all essential terms of the sale. A buyer or seller cannot rely on text messages, conversations or other communications to fill in key information missing from the written, signed document. 

Don’t squander an opportunity or waste time and money by negotiating agreements that won’t hold up in court. H. Clay Parker, Esq. The Florida Lawyer provides comprehensive counsel to clients statewide on a wide range of contact matters. To discuss your particular situation and needs, please call [ln::phone] or contact us online. Our office is in Orlando.  

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