What is the "Statute Of Frauds"?

This somewhat ominous sounding term simply refers to the NH law that states that in order for certain contracts to be “enforceable” they must be in writing; real estate contracts fall under this statute. What does it mean for consumers?

One important thing to keep in mind with respect to real estate contracts is that until the offer is signed by both parties, and each party or their respective agents have received a copy of the contract, the offer can be withdrawn by either party. Even though both buyer and seller have “verbally” agreed to terms and are feeling good about them, another offer can be made, presented, and accepted by the seller, leaving the first prospective buyer with no contract and sometimes feeling cheated. However, listing agents have a legal obligation to the seller to present all offers submitted by prospective purchasers even though another offer is being negotiated.  Likewise, a buyer who had considered two properties and makes an offer on one of them can decide in mid negotiations to withdraw that offer and make an offer on the other property. Again, the buyer’s agent has a legal duty to the buyer to accommodate his decision to withdraw one offer in favor of making another.  

Once an offer is signed, sealed, and delivered, however, unlike in some states, in New Hampshire that offer immediately becomes a binding contract upon both parties subject only to the terms and conditions set forth in the contract. The suggestion many Realtors make to their clients is not to unnecessarily prolong negotiations but to attempt to reach acceptable terms as quickly as possible.