When Does a Verbal Agreement on Property Rights Hold Up in Court?

Verbal agreements are often made between family members, neighbours, or business partners when it comes to the use or transfer of property. While these types of agreements may seem straightforward, questions often arise about their enforceability. At Linley Welwood, our lawyers understand the complexities involved in property matters. That is why we have outlined some key considerations for when a verbal agreement on property rights holds up in court.

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Are Verbal Agreements on Property Rights Enforceable?

In British Columbia, not every verbal agreement will be recognized in court, especially when it comes to land or property; however, there are some situations where such agreements may be enforced, depending on the circumstances and supporting evidence.

The Role of the Statute of Frauds

Under the British Columbia Law and Equity Act, agreements involving an interest in land typically need to be in writing to be enforceable. This principle, rooted in the Statute of Frauds, often comes into play during real estate disputes. Without a written contract, a verbal agreement regarding property ownership or rights is unlikely to succeed in court, except under specific exceptions.

Importance of Evidence and Credibility

Even when exceptions apply, the enforceability of a verbal agreement depends heavily on the evidence provided. Testimony, witness accounts, and documentation showing reliance on the agreement can all play a role. Courts will also consider the credibility of the individuals involved when making a decision.

Exceptions Through Part Performance

One of the key legal considerations for real estate involves understanding the“part performance” exception.. This may occur when one party has taken clear steps in reliance on an agreement, such as making payments, improving the land, or taking possession of it. Courts may view these actions as proof that an agreement existed, even if it was not put in writing.

At Linley Welwood, our lawyers can help you understand whether a verbal agreement on property rights may be enforceable in your situation. Contact us today to learn more about property law in British Columbia and to get trusted guidance for protecting your interests.