medium · National Real Estate Exam transfer-title

A landowner orally agrees to sell a parcel to a buyer for $200,000. The buyer pays the full price in cash, takes exclusive possession, and over the next year builds a $60,000 addition with the seller's knowledge. No written contract is ever signed. The seller then refuses to deliver a deed and asserts the Statute of Frauds. The buyer sues for specific performance.

What is the most likely result and the controlling rationale?

  1. The buyer obtains specific performance, because the combination of payment, possession, and valuable improvements constitutes part performance unequivocally referable to the oral contract, removing it from the Statute of Frauds
  2. The seller prevails, because the Statute of Frauds bars enforcement of any land-sale contract not evidenced by a signed writing, without exception for performance already rendered
  3. The buyer is limited to restitution of the $200,000 plus the improvement cost, because equity will compensate but will never compel conveyance of land on an oral promise
  4. The buyer obtains specific performance solely because full payment was made, since payment of the entire purchase price is by itself always sufficient to satisfy the Statute of Frauds

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