In the context of real estate, what does 'Equitable Estoppel' aim to prevent?

Equitable Estoppel aims to prevent unjust results that can arise from denying the existence of a contract when one party has relied upon the representations or conduct of another party. This legal principle is particularly important in real estate transactions, where one party may have acted to their detriment based on the belief that a contractual relationship existed. For instance, if a party has begun to perform their obligations or has made significant investments based on the other party's assurances, it would be unjust to later deny the validity of that agreement. By invoking equitable estoppel, courts can help ensure fairness by upholding the expectations created through the conduct of the parties involved.

This principle does not serve to eliminate fraudulent claims over ownership, nor does it signify that all oral agreements are unenforceable. Instead, it acts selectively to uphold certain agreements and prevent injustice based on prior conduct, making it a crucial tool in protecting the rights of parties in real estate transactions. Additionally, while negligence can affect real estate dealings, equitable estoppel specifically addresses the reliance on representations rather than negligence itself.