Real Estate Contract Dispute

Summary

A court in Virginia will likely rule in favor of Bill, granting specific performance, as Sarahs personal feelings are not a valid legal reason to breach the contract. In the case of Brea and Lee, the oral agreement may not be enforceable due to the Statute of Frauds, which requires real estate contracts to be in writing.

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Sarah owned a single-family home in a large subdivision. She entered into a contract to sell the home to Bill for $*,*, its fair market value, with escrow to close within 120 days; Bill recorded the contract. Two weeks later, Sarah and Bill had a loud and unpleasant argument. As a result, Sarah wanted to ensure that Bill would never live in her house. She sent a note to Bill which read: “Bill: I could not stand you living in my house after you treated me in such a mean fashion. I won’t sell to you. There are plenty of other houses like mine in the subdivision, and you can buy one of them.” Sarah quickly sold the house to Toby for $*,*, after fully informing Toby why she would never sell to Bill. Bill sued Sarah for breach of contract, seeking specific performance of the sales contract. How will the court rule?
The court will likely rule in favor of Bill, granting specific performance. In Virginia, when a valid contract for the sale of real property exists, the buyer is entitled to specific performance unless there is a legal justification for the seller's refusal. Sarah's personal feelings are not a valid legal reason to breach the contract.
Do you need more information on the legal standards for specific performance in Virginia?
Brea placed the following ad in her local newspaper: “House located at * Leaf Ave. for sale at $*,*.” Lee read the ad, visited the property, and talked with Brea. Lee and Brea orally agreed that Lee would purchase the home for $*,* and title would transfer to him within 90 days. Lee gave Brea a check for $*,* as an earnest money deposit. Lee signed the check, writing “$*,* purchase price for * Leaf Ave.” on the back of the check and Brea’s name on the payee line. Brea has not cashed the check. Which of the following is correct in most jurisdictions?
In most jurisdictions, including Virginia, the Statute of Frauds requires that contracts for the sale of real property be in writing to be enforceable. Since the agreement between Brea and Lee was oral and no written contract exists, the contract may not be enforceable in court.
Do you need more information on the Statute of Frauds and its exceptions?