{"id":1155,"date":"2014-04-07T14:34:00","date_gmt":"2014-04-07T14:34:00","guid":{"rendered":"https:\/\/www.sherin.com\/real-estate\/2014\/04\/07\/appeals-court-rejects-buyers-attempt-to-enforce-sellers-conditional-acceptance\/"},"modified":"2021-09-21T17:02:38","modified_gmt":"2021-09-21T17:02:38","slug":"appeals-court-rejects-buyers-attempt-to-enforce-sellers-conditional-acceptance","status":"publish","type":"post","link":"https:\/\/www.sherin.com\/real-estate\/2014\/04\/07\/appeals-court-rejects-buyers-attempt-to-enforce-sellers-conditional-acceptance\/","title":{"rendered":"Appeals Court Rejects Buyer\u2019s Attempt to Enforce Seller\u2019s Conditional Acceptance"},"content":{"rendered":"<p>The Massachusetts Appeals Court in <em><span style=\"text-decoration: underline;\">Host v. Gray<\/span><\/em> recently affirmed a Land Court decision dismissing a buyer\u2019s claim seeking specific performance of his offer to purchase real property.\u00a0 In March 2010, the seller subdivided her property into three parcels, two of which became known as \u201cLot 18\u201d and \u201cLot 19.\u201d\u00a0 Thereafter, the seller, through a broker, listed Lot 19 for sale.\u00a0 The buyer viewed Lot 19 in October 2010.\u00a0 At that time, the seller\u2019s broker advised the buyer that any sale of Lot 19 would require the purchase of some or all of Lot 18 in order to provide access to Lot 19.<!--more--><\/p>\n<p>On October 22, 2010, the buyer tendered a written offer for both lots in their entirety.\u00a0 Three days later, the seller\u2019s broker responded by e-mail stating that the seller <strong>\u201cis accepting the offer\u201d<\/strong> but that the seller would need to retain a portion of Lot 18 to build a garage on the third, adjacent lot and that the parties would need to \u201cwork out the conditions\u201d of how Lot 18 would be divided.\u00a0 The parties later learned from the building inspector that Lot 18 was not necessary for the seller\u2019s proposed use.\u00a0 On November 1st, the seller accepted an offer to convey Lots 18 and 19 to an unrelated third-party.\u00a0 The initial buyer brought suit in Land Court for specific performance of the sale of Lots 18 and 19.\u00a0 The Land Court dismissed the buyer\u2019s claim at summary judgment.<\/p>\n<p>The Appeals Court noted at the outset that \u201can acceptance which varies substantially from the offer does not make a binding agreement.\u201d\u00a0 Here, the buyer had offered to purchase all of both Lots 18 and 19.\u00a0 Although the seller\u2019s broker advised the buyer that the offer had been \u201caccepted,\u201d in reality, it had not.\u00a0 The broker described her communication as a \u201cconditional response,\u201d then proceeded to explain that further negotiation was necessary with regard to how Lot 18 would be dealt with.\u00a0 The Court therefore rejected the buyer\u2019s focus on the words indicating the seller\u2019s purported \u201cacceptance.\u201d\u00a0 The Court found that the broker\u2019s response amounted to a \u201cnew offer, or counter proposal, and in order to become a contract would have to be accepted by the [buyer].\u201d<\/p>\n<p>The Court also rejected the buyer\u2019s claim that a contract was formed once the parties learned that the seller did not need to retain any of Lot 18 to develop the adjacent property, as this did not come about until after the broker\u2019s October 25th email inviting further discussion.\u00a0 Simply put, \u201cthe buyer never agreed to purchase less than all of Lot 18 and the seller never agreed to sell all of Lot 18.\u201d\u00a0 Absent an agreement on a material term, i.e., the amount of Lot 18 to be included in the sale, no contract could be formed.<\/p>\n<p>This analysis may be rendered moot to the extent the transaction requires an execution of a formal purchase and sale agreement.\u00a0 Nevertheless, a prospective buyer of real property would be wise to ensure that the seller does not vary the terms of an offer, lest the buyer be left with an unenforceable agreement.\u00a0 Alternatively, a prospective seller should be mindful that an unconditional acceptance is likely binding, and that specific performance is a long-recognized remedy available to a buyer.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Massachusetts Appeals Court in Host v. Gray recently affirmed a Land Court decision dismissing a buyer\u2019s claim seeking specific performance of his offer to purchase real property.\u00a0 In March 2010, the seller subdivided her property into three parcels, two of which became known as \u201cLot 18\u201d and \u201cLot 19.\u201d\u00a0 Thereafter, the seller, through a [&hellip;]<\/p>\n","protected":false},"author":9,"featured_media":5621,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":"","_links_to":"","_links_to_target":""},"categories":[],"tags":[],"class_list":["post-1155","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Appeals Court Rejects Buyer\u2019s Attempt to Enforce Seller\u2019s Conditional Acceptance - Real Estate<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.sherin.com\/real-estate\/2014\/04\/07\/appeals-court-rejects-buyers-attempt-to-enforce-sellers-conditional-acceptance\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Appeals Court Rejects Buyer\u2019s Attempt to Enforce Seller\u2019s Conditional Acceptance - Real Estate\" \/>\n<meta property=\"og:description\" content=\"The Massachusetts Appeals Court in Host v. 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