E-Mails Legally Binding According to NY Court: Naldi v Grunberg

[Joshua Dorkin]

If you negotiate real estate deals via email, be aware that “handwriting and email should now basically be considered one and the same," as a result of the Naldi v Grunberg case. E-mails may become legally binding in real estate transactions, if contract terms were offered within those messages, according to a New York court ruling.

According to MortgageLoan:

Naldi vs. Grunberg, involves an Italian national who made an offer of $50 million to buy two Manhattan apartment buildings. The owner responded with an email in which he accepted the offer, pending completion of a contract, and offered Robert Naldi – the buyer – the right of first refusal if a better offer came along.

The properties were subsequently sold to another buyer for $52 million and Naldi sued, claiming his right of first refusal was violated.

The status of e-mail agreements hinges in large part upon whether an agreement has been reached; several attorneys told the Times the ruling could be circumvented by attaching a disclaimer to e-mails saying no deal is final until a contract is signed.

For more info, read:
- Naldi v Grunberg
- Real Estate Update: New York Appellate Court Concludes E-Mail Satisfies Writing Requirement
- E-Mail May Be Binding, State Court Rules - NY Times