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Harris v. Distinctive Builders Inc.

The parties did not enter into an enforceable real estate sales contract involving trust property because plaintiff's offer was conditioned on obtaining the co-trustee's signature and the co-trustee never signed.

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This appeal involves negotiations between Distinctive Builders, Inc. “DB” and Richard Harris, co-trustee of the Trust U/W of Katie Allen Harris “Trust”, to purchase 3.03 acres of land off Northside Drive in Atlanta owned by the Trust. The primary issue before us is whether the parties entered into a binding sales contract. We hold that they did not, and therefore reverse that portion of the trial court’s order finding otherwise.

The parties do not disagree on the underlying facts, just on the underlying motivations and legal consequences. Harris and his wife jointly owned the property at issue here. When Harris’s wife died, her will directed that a percentage of her assets be placed in trust for the benefit of Harris and the couple’s three daughters. To fund part of the trust, Harris deeded his interest in the property to the trust, of which he was a trustee along with his wife’s cousin by marriage, Earl Dolive. Harris then listed the property with a real estate broker, along with a separate, adjoining piece of property that included his house.

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