Emails May Create A Binding Property Contract

It is surprising to many property professionals that there is no longer a requirement for an inked signature in order to create a binding contract. This is more surprising again where the contract relates to an interest in land.

A contract for the sale of land must satisfy Section 2 of the Law of Property (Miscellaneous Provisions) Act 1989 (the 1989 Act). The purpose of the 1989 Act was to produce certainty in relation to contracts for the sale of land and reduce the need for extrinsic evidence to establish the terms of the contract. Section 2 of the 1989 Act provides that the contract must:

• Be in writing
• Be signed by or on behalf of both parties
• Incorporate all the terms the parties have agreed in one document (or, where contracts are exchanged, in each document)