Why Verbal Offers Don’t Work.

Verbal or email offers are often used by buyers to express interest in a property—it can feel like you’re negotiating or gaining ground with the agent. But in reality, these informal offers carry little to no legal weight.

Although they might get the conversation started, they don’t secure the property, protect your position, or stop the agent from shopping the property to other buyers.

They lack the formal documentation and legal structure required to ensure certainty, clarity, and enforceability.

Let’s take a closer look at how agents use these types of offers to close a deal—because it’s not as straightforward as you might think.

How Real Estate Agents Use Verbal Offers Against you.

The agent can use that same verbal offer to spark urgency among other interested buyers, saying, “We’ve received an offer—if you’re serious, now’s the time to act.”

This tactic creates a sense of competition, drawing out written offers from other buyers without the agent ever having to disclose whether the original offer was genuine, qualified, or even real.

How Verbal Offers Put Buyers at a Disadvantage

Lack of Certainty: A verbal offer doesn’t outline specific terms and conditions, such as the price, settlement date, or any special conditions like finance or inspection clauses. 

No Legal Enforceability: A verbal agreement is not legally binding, meaning either party can withdraw from the deal without legal repercussions. 

Potential for Misunderstandings: Without a written record, it’s easy for misunderstandings to arise regarding the terms of the agreement. 

What Makes a Property Offer Legally Binding in Victoria?

In Victoria, a property offer does not become legally binding simply because it has been made or verbally accepted. For a property transaction to be enforceable under Victorian law, several specific steps must take place.

First, both the buyer and the seller must sign a formal Contract of Sale, which outlines the agreed terms, including the purchase price, settlement date, and any special conditions such as finance or building inspections.

Once the contract is signed, the next critical step is the exchange of contracts, which confirms that both parties have received a fully executed copy of the agreement. This exchange demonstrates mutual commitment and marks the formal point at which the legal obligations begin to take effect.

Finally, to solidify the agreement, the buyer must pay a deposit, typically around 10% of the purchase price, unless otherwise negotiated.

This payment not only signifies serious intent but also activates the legal responsibilities contained within the contract. Only after all three of these elements—signed contracts, exchanged documents, and deposit paid—are complete does the property offer become legally binding in Victoria.

Until then, either party can legally withdraw without consequence.

Verbal offers make it significantly easier for real estate agents to manipulate buyers and much harder for you to negotiate on a fair and level playing field.

Without written documentation, there’s no transparency, no accountability, and no clear commitment from either party—leaving buyers vulnerable to shifting goalposts, phantom offers, or being played off against other buyers.

If you’re serious about buying property in Victoria, it’s essential to put your offer in writing and ensure it’s supported by the right professional guidance.

A qualified buyer’s agent can help you avoid these common traps, hold agents accountable, navigate complex negotiations, and ensure your purchase is approached with clarity, legal protection, and confidence from start to finish.

More information on how real estate agents use verbal offers.