📜 What Is the Statute of Frauds in Real Estate?

The Statute of Frauds is a legal rule requiring certain real estate agreements to be in writing to be enforceable. It prevents fraud, misunderstandings, and disputes by ensuring key property transactions are documented.

How the Statute of Frauds Works

In real estate, verbal agreements are generally not enforceable if they involve property transfers, leases beyond one year, or major financial obligations. The Statute of Frauds requires a written document that identifies the parties, the property, and the essential terms.

Real estate agreements that must be in writing:

  • Purchase and sale contracts
  • Listing agreements (in many states)
  • Leases longer than one year
  • Options to purchase real estate
  • Land installment or owner-financing agreements
  • Easements and deeds

Written agreements typically require a signature from the party being held to the contract.

Why the Statute of Frauds Matters

For Buyers & Sellers:

  • Prevents disputes over verbal promises
  • Ensures both parties clearly understand the terms
  • Protects the transfer of property rights

For Legal Compliance:

  • Courts generally will not enforce unwritten real estate contracts
  • Helps maintain accurate public records
  • Supports proper chain of title

Example of the Statute of Frauds in Real Estate

Example: A seller verbally agrees to sell a home for $400,000, but no written contract is signed. The buyer later claims the seller must complete the sale. Under the Statute of Frauds, the buyer cannot enforce the verbal agreement — only written and signed agreements are valid.

Why the Statute of Frauds Matters for FSBO Sellers

  • Protects sellers from verbal promises made during negotiations
  • Ensures all offers, counteroffers, and contract terms are in writing
  • Strengthens the legality of FSBO sales without relying on agent communication
  • Critical when listing with a Flat Fee MLS service

🔗 Related Resources for Buyers & Sellers

Frequently Asked Questions

Does the Statute of Frauds apply to all real estate contracts?
Almost all major real estate agreements must be in writing to be enforceable.

Can text messages or emails count as a written contract?
Sometimes — if they clearly show essential terms and intent to contract.

Does a written contract always need to be notarized?
No. Most contracts require only signatures. Deeds, however, must be notarized.

What happens if a verbal real estate agreement is disputed?
Courts typically dismiss claims without written documentation under the Statute of Frauds.