- Ontario's Statute of Frauds is long-standing legislation that requires certain categories of contracts — including agreements for the sale of land — to be evidenced in writing and signed…
- The formality required isn't necessarily a full, lawyer-drafted document — but it does need to capture the essential terms, typically the property, the price, and the parties, and be…
- Ontario courts have, in some circumstances, recognized narrow exceptions to the writing requirement — for example, where a party has already acted in reliance on a verbal agreement in a…
A handshake, a text message confirming "we have a deal," a verbal promise made at an open house — none of it is unusual in the emotional rush of buying a home. But when a home sale later falls apart, one side sometimes asks the same question: wasn't there already a deal?
In most cases, the answer under Ontario law is no — not on its own. Real estate agreements are one of the categories of contracts that generally must be in writing to be enforceable, a rule with roots going back centuries.
This article explains why a verbal agreement to buy a house generally isn't enforceable in Ontario, what "in writing" actually requires, and how to protect yourself during negotiations.
The General Rule: Real Estate Deals Must Be in Writing
Ontario's Statute of Frauds is long-standing legislation that requires certain categories of contracts — including agreements for the sale of land — to be evidenced in writing and signed by the person against whom the agreement is being enforced, in order to be enforceable in court. This is a well-established, foundational principle of Ontario contract law, not a recent policy or a rule specific to any one type of transaction.
In practice, this means that even if both sides genuinely agreed on price, closing date, and other terms out loud, a court generally will not force either side to go through with the deal unless there's a sufficient written record, signed by the party being held to it.
What Counts as "In Writing"?
The formality required isn't necessarily a full, lawyer-drafted document — but it does need to capture the essential terms, typically the property, the price, and the parties, and be signed by the party being bound. This is exactly why real estate transactions in Ontario are built around signed Agreements of Purchase and Sale rather than informal correspondence: the standard-form APS is designed to satisfy this requirement clearly and completely, leaving little room for a later dispute about whether a deal actually exists.
Texts, emails, or notes discussing a possible deal are not necessarily enough on their own, particularly if they don't clearly capture all the essential terms or aren't signed by the party you're trying to hold to the deal.
Are There Any Exceptions?
Ontario courts have, in some circumstances, recognized narrow exceptions to the writing requirement — for example, where a party has already acted in reliance on a verbal agreement in a way that would make it unfair to allow the other side to walk away. These exceptions are fact-specific, difficult to predict, and not something either side should count on. If you're relying on an exception rather than a signed agreement, you're already in higher-risk legal territory.
What Happens If You Try to Enforce a Verbal Deal
Trying to force a verbal home-purchase agreement through the courts, without a signed writing to back it up, is generally a difficult and uncertain path. Even where a court might ultimately find some remedy available on unusual facts, getting there means litigation — time, legal costs, and no guaranteed outcome — for a deal that could have been made secure with a signature at the outset.
Protecting Yourself During Negotiations
- [ ] Treat a verbal agreement on price or terms as a starting point for negotiation, not a done deal
- [ ] Don't give up other opportunities, like competing offers or other showings, based on a verbal "yes"
- [ ] Insist on a proper, signed Agreement of Purchase and Sale before treating anything as final
- [ ] Get any changes to the deal — price adjustments, condition waivers, closing date changes — in writing and signed
- [ ] Have a lawyer review the agreement before you sign, not after a dispute has already started
Frequently asked questions
If the seller shakes my hand and says "deal," can they still back out?
Generally, yes, until there's a signed written agreement capturing the essential terms. A handshake and a verbal "yes" are not, on their own, typically enforceable for a real estate transaction in Ontario.
Does an email confirming "we agreed on the price" count as being in writing?
It might, depending on what the email says and whether it's signed by the party you're trying to hold to it — but it's a much riskier foundation than a proper Agreement of Purchase and Sale, and shouldn't be relied on as equivalent to one.
What about a verbal agreement to extend or change a signed deal?
The same general principle applies — changes to an existing written real estate agreement are safest, and most reliably enforceable, when documented in writing and signed by both parties, not agreed to verbally.
I already gave notice on my rental based on a verbal deal that fell through — do I have any recourse?
This is exactly the kind of situation where the narrow exceptions to the writing requirement sometimes get argued, but outcomes are uncertain and fact-dependent. Speak with a lawyer promptly rather than assuming either that you have no recourse or that you're automatically protected.
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