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The Dangers of Handshake Deals in Real Estate

By PropsManager Team | Dec 17, 2025

The Dangers of Handshake Deals in Real Estate

Real estate is a business of contracts. Verbal agreements are:

  1. Hard to prove.
  2. Often unenforceable (Statute of Frauds requires real estate contracts to be in writing).
  3. Prone to misunderstanding.

Common Handshake Pitfalls

  • "You can pay me next week." (Tenant hears: "I can pay whenever.")
  • "I'll fix that fence soon." (Tenant expects tomorrow; you meant next month.)
  • "My cousin is moving in for a bit." (You think a week; they mean a year.)

The Solution

"Put it in writing." Even for small things, send an email or text confirming the conversation. "Just to confirm our chat: You will pay rent on the 5th this month only, including the late fee. Please reply to confirm."

Conclusion

Paperwork protects relationships. It ensures everyone is on the same page.