K.M. Minemier & Associates is a certified Woman Owned Small Business (WOSB) engaged in full service real estate asset management and marketing.

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An ''agreement" by text message or direct messenger binding?

February 15, 2022

 

I am an old fashion rule follower, I will still have a purchase offer contract for my clients offer. I ran across an article in the Illinois Realtor February 2022 issue, I want you to aware of.

In this time of pandemic informal means of communication have become a common way of business.

Working remotely, maintaining social distancing, virtual showings and the new virtual brokerage offices. In Illinois generally speaking a contract is legally binding if one party made an offer to do something in exchange for consideration from the other party, and the other party accepted the offer. These are the three elements of a contract: (1) offer; (2) acceptance; and (3) consideration. (Nov 16, 2020)

However, if there is anything the past year has taught us, nothing should be presumed and based upon some recent case law in other states, licensees should be cautious about how they are negotiating by text or DM. I am not promoting this practice. I just want brokers to know if they would come up against another broker with an agreement in place, it won't catch them off guard.

For example: In 2019, a New York State court found that a text between a landlord and a tenant was an enforceable contract. (see Karaduman v. Grover (Ithaca City Ct. 2019)).

                      In Massachusetts, a court upheld the validity of a contract for sale of land based upon text messages exchanged between the brokers for the parties, finding that the content of messaging signified an intent to be bound. (see St. John's Holdings, LLC v. Two Electronics, LLC (Mass. Land Ct. 2016)).

I hope this text message and direct Message that can become a binding agreement does not become a common practice.

If you would like to see the whole article I would be glad to email a copy to you.  Email request to office@recojville.com

 

 


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