The Myth: A Handshake Agreement to Buy Property is Binding
Many buyers mistakenly believe a verbal 'gentleman's agreement' to buy land is legally binding. In reality, property contracts must be in writing to be enforceable.
In many areas of business, a verbal contract sealed with a handshake is legally binding. However, UK property law is completely different. Due to the Law of Property (Miscellaneous Provisions) Act 1989, any contract for the sale or disposition of an interest in land must be made in writing and signed by all parties.
If you verbally agree to buy a piece of land from a farmer, or agree on a house price with a seller over a pint in the pub, that agreement is completely worthless in the eyes of the law. Until formal written contracts are exchanged through solicitors, either party can walk away without any legal penalty whatsoever.