October 14, 2025
Real estate transactions are among the most significant legal dealings most people will enter into in their lifetime. In Ontario, these transactions are governed by a combination of common law principles and statutory requirements. One common question that arises is: can a verbal agreement to buy or sell real estate be legally enforced in Ontario?
The Short Answer: No, Not Usually
Under Ontario law, a verbal agreement to buy or sell land is generally not enforceable. This is because of the Statute of Frauds, a centuries-old legal rule that still applies today.
The Statute of Frauds
Section 4 of the Statute of Frauds, RSO 1990, c. S.19, states that any contract for the sale or disposition of land must be in writing and signed by the party to be charged (or their authorized agent) to be enforceable in court.
This means that if you agree to sell your house to someone over the phone or in person without a signed written agreement, the deal likely cannot be enforced—even if both parties agree on the price and the terms.
Why the Law Requires It in Writing
The rationale behind this rule is simple: real estate is too important and too valuable to rely on “he said, she said” evidence. Written agreements help avoid misunderstandings, clarify key terms, and serve as concrete proof if a dispute arises.
Are There Any Exceptions?
Yes, but they are narrow and rarely successful in court. One exception is the doctrine of part performance.
Under part performance, a court may enforce an oral agreement where:
- The party claiming the deal took steps that clearly relate to the agreement (e.g., took possession of the property, made improvements, or paid a significant portion of the purchase price), and
- The actions are only explainable by the existence of a real estate agreement.
However, Ontario courts apply this doctrine cautiously. Mere preparation to close or partial payments alone often aren’t enough.
Electronic Agreements Are Still “In Writing”
It’s worth noting that under Ontario’s Electronic Commerce Act, electronic communications (like emails or e-signed documents) can satisfy the “in writing” requirement, provided they meet certain legal standards. But this may not include casual text messages or verbal voice memos—those likely won’t cut it, though the law in this area is still in flux.
Takeaways:
- Always Get It in Writing
- Whether you’re buying, selling, or leasing real property in Ontario, always ensure that the agreement is in writing, signed, and properly reviewed.
- A real estate lawyer can help you confirm that your agreement meets the statutory requirements and protects your interests.
- While a verbal promise may feel binding, in the eyes of the law, it often isn’t. If you’re involved in a dispute over an alleged verbal real estate deal—or want to avoid one—consult an Ontario real estate lawyer before taking further action.
How Weilers LLP can help you
Buying or selling your home in Ontario involves several legal steps, from listing the property and disclosing relevant information to completing the sale and transferring the title. By understanding your legal obligations and working with professionals such as the real estate team at Weilers LLP, you can navigate the process with confidence. Whether you’re a seasoned investor or new to the market, ensuring that you meet all legal requirements will help make the deal as smooth and successful as possible. Give us a call and see if we are the right lawyers for you.