If you`re looking to buy or sell a property, it`s important to understand the legal concept of an implied contract. An implied contract is a type of contract that arises when the parties involved fail to create an express agreement, but their conduct or actions show that they agreed to certain terms. When it comes to real estate, an implied contract can arise in a number of different situations.
One of the most common instances is when a real estate agent shows a property to a prospective buyer. Even if there is no express agreement between the parties, the agent`s conduct in showing the property and the buyer`s conduct in viewing it can be seen as an implied contract. This means that the buyer may be obligated to work with that agent and pay them a commission if they decide to purchase the property at a later point in time.
Another situation where an implied contract can arise is when a seller makes certain representations about the property. For example, if a seller tells a buyer that the property has been well-maintained and free from defects, the buyer may rely on those representations and enter into a contract to purchase the property. If it later turns out that the property was not as represented, the buyer may have a legal claim against the seller based on the implied contract.
It`s important to note that an implied contract can arise even if the parties did not intend to create a formal agreement. This means that buyers, sellers, and agents need to be careful about their actions and representations when dealing with real estate. Any conduct or statements made during the purchase process can be used as evidence of an implied contract, and parties may be held liable for failing to fulfill their obligations under that agreement.
Overall, understanding the concept of an implied contract is critical for anyone involved in real estate transactions. Whether you`re a buyer, seller, or agent, it`s important to be aware of the potential for these types of agreements to arise and to take steps to ensure that all parties understand their obligations and responsibilities. With careful attention to detail and a thorough understanding of the law, it`s possible to navigate the complex world of real estate and emerge with a successful transaction.