Can homebuyer take back verbal OK to cancel contract?

Question: Last month, I listed my Sun City home for sale to move to Utah to live with my son’s family. An investor buyer immediately offered to buy my home for my list price of $420,000, so I accepted. Since that time, I have had nothing but arguments with my son’s wife, and I no longer want to move to Utah. My listing agent and I then had a meeting at Starbucks with the investor buyer and his agent. I offered the investor buyer $25,000 to cancel the contract, and he accepted my $25,000 offer. I was so happy I started crying. We all hugged, and I was told that the paperwork would be ready the next day. An hour later my agent called to say that the investor buyer said that our $25,000 verbal agreement to cancel the purchase contract was unenforceable, and that he now wanted $75,000 to cancel the purchase contract. Is that right?

Answer: Probably not. Although the Statute of Frauds, ARS 44-101, requires that a contract, and any amendment, to sell a home or other real property be in writing, there is no such requirement to cancel that contract. Therefore, if the real estate agents support your testimony, the purchase contract should be canceled for your payment of $25,000.