Peter Carr discusses electronic communications concerning the Statue of Frauds requirement in real estate deals (Massachusetts Lawyers Weekly)

May 20, 2016

Peter Carr was quoted in the Massachusetts Lawyers Weekly article “Agents’ text messages sealed real estate deal – Exchange satisfies Statute of Frauds.” A Land Court judge recently decided that “a text message can satisfy the Statute of Frauds and seal a real estate transaction,” according to the article. The decision pertained to a matter in which a potential purchaser of an office building thought a binding contract was established based on a text message that the seller’s agent had sent to its broker. In the text message, the seller’s agent indicated that the buyer just needed to sign copies of a letter of intent and deliver a deposit check. Even though the potential buyer followed through with the letter of intent and deposit check, the seller had accepted another party’s offer and proceeded to enter a written purchase-and-sale agreement and set a tentative closing date. The jilted buyer rushed into Land Court seeking to enforce the contract and block the other sale, and the judge agreed that relief was warranted based on precedents involving electronic communication in the form of emails.

Carr, who represents the plaintiff, said the issue was “not so novel” in one sense.

“That is, the court’s decision brings Massachusetts law in line with the way business is routinely conducted in the modern world.” He described texting as a widely accepted, “reliable [and] uncontroversial” means of communication, especially when considered in the overall context of a transaction.

The judge’s decision suggests that great care must be taken when sending text messages and email during negotiations – and that agents should be instructed to do the same.

The full article is available on the Massachusetts Lawyers Weekly website. (Access to content on third-party websites may require subscription.)

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