Does a family sale still need a written purchase agreement, or can it just be a handshake?

A written purchase agreement is strongly advisable even within a family, and treating a business sale as a handshake deal creates real risk for both sides. A proper agreement establishes the price and payment terms, what's actually being sold — shares or specific assets — what representations and warranties apply, what happens if something goes wrong after closing, and what security exists if payment is spread out over time.

Without it, there's no clear record of what was actually agreed to if memories differ later, if the relationship changes, or if tax authorities or other family members ever question the transaction. A handshake deal also makes it much harder to get financing, properly transfer corporate records and licences, or show a purchasing child clean title to what they've bought. The paperwork can be scaled to fit a family transaction, but skipping it entirely tends to cause exactly the kind of disputes that a properly documented sale is meant to avoid.