Contract Law
Statute of Frauds in Real Estate Explained
The Statute of Frauds requires certain contracts — including real estate sales — to be in writing to be legally enforceable. It's a foundational contract law concept tested on every real estate licensing exam.
What the Statute of Frauds Requires
The Statute of Frauds (originally enacted in England in 1677 and adopted in various forms by every U.S. state) requires certain types of contracts to be in writing and signed by the party to be charged to be enforceable in court.
In real estate, the following must be in writing: contracts for the sale of real property, leases for more than one year, listing agreements (required in most states), and buyer representation agreements (required in many states).
An oral real estate sales contract is void or voidable — a party can refuse to perform and the other party cannot force specific performance in court, even if both parties agreed verbally.
Real Estate Contracts That Must Be Written
Purchase and sale agreements (contracts for the transfer of real property)
Deeds — must be in writing to convey title
Mortgages and deeds of trust
Leases for more than one year
Listing agreements (required in most states)
Buyer representation agreements
Options to purchase real estate
Land contracts (contracts for deed)
Statute of Frauds FAQ
What happens if someone performs an oral real estate contract?
Partial performance can sometimes remove a contract from the Statute of Frauds. If a buyer pays part of the purchase price and takes possession of the property under an oral contract, a court may enforce it under the doctrine of part performance.
Does a lease for exactly one year need to be in writing?
This varies by state interpretation. Most states require writing for leases 'more than one year' — a lease for exactly 12 months falls in a gray area. Best practice is always to put leases in writing regardless of term.
Is an email exchange sufficient to satisfy the Statute of Frauds?
In most states, yes — electronic signatures and electronic records satisfy the Statute of Frauds under state versions of the Uniform Electronic Transactions Act (UETA) and the federal E-SIGN Act.
What is the difference between void and voidable contracts?
A void contract has no legal effect from the start — neither party can enforce it. A voidable contract is valid unless one party elects to rescind it. Contracts that fail the Statute of Frauds are generally unenforceable (treated as void) by the party who didn't sign.