Real Estate Contracts Must be in Writing and Only Include Matters Concerning the Buyer and Seller
The law in BC requires that Contracts for the Purchase and Sale of real estate (CPS) must be in writing (section 59 of the Law and Equity Act of BC).
This requirement applies not only to the initial offer, but to counter-offers and any contract amendments. Until an amendment is finalized and agreed to by both parties, the existing unamended CPS contract terms remain in force.
The requirement to be in writing leads to greater certainty about the terms of a contract. The adage “if it’s not in writing, it didn’t happen” is apt.
Verbal agreements are hard to prove and are especially challenging for either the buyer or seller to enforce their rights should the transaction goes awry.
The bottom line is that verbal agreements to buy or sell real estate are not legally binding. Not only are verbal contracts not legally binding, but the parties to the transaction (buyers and sellers), are put at a disadvantage. Real estate agents are not parties to the CPS and could be putting themselves at risk.
Therefore, the CPS should not contain any clauses pertaining to the terms or conditions between buyer/seller and the REALTOR®, such as commission arrangements, for example. Any such provisions between an agent and one of the parties must be in a separate agreement.
Source: Professional Standards