Statute of frauds
National Real Estate Exam glossary · Contracts
Definition
The legal rule requiring that contracts for the sale of real property—and certain leases—be in writing and signed by the party to be charged in order to be enforceable. It is the reason an oral agreement to buy land generally cannot be enforced in court.
Statute of frauds in plain English
This is basically the law saying "if it's a big deal, get it in writing." For something as huge as buying land or signing a long lease, a court won't enforce a mere handshake or spoken promise — the deal has to be written down and signed by the person you're trying to hold to it. Think of it like a group project where the teacher only accepts the plan if it's typed up and signed: if it was just talked about out loud, she can't grade anyone on it. The point is to stop people from lying in court about promises that were never really made.
Learn these first
Related National Real Estate Exam terms
National Real Estate Exam practice questions · National Real Estate Exam flashcards · National Real Estate Exam study guide