Odd question about real estate and Chicago (lease, attorney)

[linicx]

I have friends from Europe who moved to Chicago and found a house she fell in love with. This is their first US house. Their realtor said she was going to present a verbal offer. If the offer was accepted then she would write the contract and they could sign it.

Years ago a verbal offer was illegal in Illinois. You had to have a written contract and escrow in hand before it could be presented. Has IL Real Estate Law changed that much, or did my friends find a lazy realtor?

[ToriaT]

The verbal offer might be a term of art, I don't know. I just bought a building and my agent called the listing agent, who he knew and told her what we were going to present. She informed him that they already had two offers on the building and we would have to come up higher than what we were going to present if we wanted it. In the end we had to present a written offer that was higher than what we intended. I think some agents do it to scope things out...its not a formal verbal offer its just talking to the listing agent so they can get a feel for what is out there. In the end, I got the building because I had the highest or same offer and I was paying cash.

[Drover]

Agreement to a verbal offer is not legally binding. A verbal offer is just fishing for a "yes" or "no" to determine where to go from there: either continue negotiating, or draw up the paperwork to make it binding.

[linicx]

Doesn't sound quite kosher for the listing agent to show a house, then call the owner and tell them they have a cash offer of X dollars without mentioning the written offer from another party. Both written offers were presented. Although the first written offer was attractive they took the cash. Can say as I blame them.

BTW, Thanks!

Originally Posted by Drover

Agreement to a verbal offer is not legally binding. A verbal offer is just fishing for a "yes" or "no" to determine where to go from there: either continue negotiating, or draw up the paperwork to make it binding.

[Carson9]

No listing agent or seller would take a verbal offer seriously. Put it in writing. Also - you should include proof of funds (cash deals) or pre approval letter (for financed deals) to prove you can actually follow through with the offer you're giving.

[coolgato]

I agree verbal agreements are really more of the old gentlemen's agreement, which would keep me up awake at night worrying if it would be honored. Can anyone really count on someone's honor in the business world anymore? Recently, a friend was considering buying a piece of property in Florida and a staircase was built where there was a danger of someone hitting their head as they walked down, some kind of overhang, and also the stairs were very narrow at a turn. The real estate agent said they could put a sign up to watch their heads and also to take care walking down the steps, and if they decided to rent to tenants they could have it written into the contract that a dangerous situation exists on the stairs and they've been warned. The agent could be truly sincere, but I told my friend that a sign doesn't absolve liability and that it is just the agent's "advice" that putting a warning in the lease will absolve my friend of any future lawsuits. This is the agent's oral opinion and he is not an attorney. I told my friend to think long and hard about buying this property. Am I right?

[ToriaT]

The so called verbal offer is just that....fishing to see what is at play and then its followed up by a written offer. Many places are sold now with the verbiage "bring all the highest and best offers by blank date"....its just fishing to see at what price to make this offer and what to put in writing.