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Real Estate · Contracts

Why must contracts for the sale of real estate generally be in writing to be enforceable?

Reviewed by Jordan Morley, Editorial Lead at 247SimpleTests. Written by the 247SimpleTests Editorial Team from the official source material cited on every question.

Correct answer

Because the Statute of Frauds requires contracts for the sale or transfer of an interest in real property to be in writing and signed to be enforceable

  1. A Oral real estate contracts are always enforceable
  2. B Because the Statute of Frauds requires contracts for the sale or transfer of an interest in real property to be in writing and signed to be enforceable
  3. C Only leases must be written
  4. D Because real estate agents prefer paperwork

Why this is the answer

The Statute of Frauds, adopted in some form in every state, requires that certain contracts — including those for the sale or transfer of an interest in real property — be in writing and signed by the party to be charged in order to be enforceable in court. This protects against fraudulent claims based on alleged oral agreements about land. Leases longer than a specified term (often one year) also generally must be written. An oral agreement to sell land is usually unenforceable even if both parties admit it existed. Because nearly every real estate transaction depends on a written, signed contract, the Statute of Frauds is essential contract-law content.
Source: Real Estate Principles, Statute of Frauds

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About this topic: Contracts

Offer, acceptance, consideration, legal purpose, capacity, and the Statute of Frauds (writing requirement) are the essentials of a valid real estate contract. This is one of 10 Salesperson (National) questions on contracts, each with a full explanation on a single study page.

New to this exam? Our Real Estate exam guide explains the format, scoring, and how to prepare.

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