Posted: September 24, 2023
Category: Real Estate

It’s common for real estate deals—especially between family or friends—to start with a handshake or verbal understanding. But what happens if the other party backs out or refuses to follow through? Can you sue for breach of a verbal agreement involving real estate in Texas?

The short answer is: sometimes. While Texas courts recognize oral contracts in many areas of law, real estate agreements are often subject to the Statute of Frauds, which requires certain contracts to be in writing to be enforceable.

📜 What Is the Statute of Frauds?

Under the Texas Statute of Frauds (Tex. Bus. & Com. Code § 26.01), certain types of agreements must be in writing and signed to be legally binding. This includes:

  • Contracts for the sale of real estate
  • Leases lasting longer than one year
  • Agreements not performable within one year

If your real estate agreement falls into one of these categories and isn’t in writing, it may be unenforceable—even if you have text messages, emails, or witnesses to the conversation.

✅ When Can a Verbal Real Estate Agreement Be Enforced?

Texas courts may enforce an oral agreement if:

  • The contract was fully performed by one party
  • One party partially performed and relied on the promise to their detriment
  • There is clear and convincing evidence of the terms and existence of the agreement

This is often called the “partial performance” exception, and it typically applies when someone:

  • Takes possession of the property
  • Makes improvements or pays taxes
  • Pays part or all of the purchase price

⚖️ Elements You Must Prove in Court

To sue for breach of a verbal real estate agreement, you generally need to show:

  1. That a valid and definite agreement was made
  2. What the terms were (price, property, conditions)
  3. That you relied on the agreement or performed under it
  4. That the other party breached the agreement
  5. That you suffered damages as a result

Without strong evidence—especially if no money changed hands—these cases can be hard to win.

🚫 What Doesn’t Count as an Enforceable Agreement?

The following typically won’t hold up in court:

  • Vague conversations with no specific terms
  • Promises to “work something out” in the future
  • Agreements about property not owned by the person making the promise
  • Verbal leases over one year in length

Even friendly texts or casual conversations may not meet the legal standard for an enforceable contract.

📄 How to Protect Yourself

  • Always put real estate agreements in writing—even if it’s just a simple memorandum
  • Include key terms like property description, price, and closing details
  • Have all parties sign and date the agreement
  • If acting on a verbal agreement, document all communications, payments, and improvements made

🛡 How Guerra Days Law Group Can Help

We handle real estate contract disputes throughout Texas, including:

  • Claims based on verbal or handshake agreements
  • Lawsuits for specific performance or breach of contract
  • Defense against unsubstantiated oral claims
  • Legal drafting and review of enforceable real estate contracts

If you’ve invested time or money based on someone’s promise about property, we’ll help you fight to protect your rights—or defend against unfair claims.

✅ Final Thoughts

Verbal agreements involving Texas real estate are risky—but not always hopeless. With the right evidence and legal support, you may be able to enforce the deal or recover what you’ve lost.

📞 Need Help With a Real Estate Contract Dispute?

Contact Guerra Days Law Group today. Our attorneys will evaluate your case and guide you through your legal options with clarity and experience.