Fri, October 23rd, 2009
Get It in Writing! The Statute of Frauds Requires It
In looking back at many of the cases I’ve litigated over the past few years, I note a common theme: the absence of some critical fact in a contractual relationship that was not agreed to in a signed writing. In real estate, as well as most other types of contracts, there is a law which in legalspeak is referred to as the statute of frauds. It requires material terms of an agreement to be in writing. There are exceptions, which I will address in subsequent posts. However, the central focus of the statute of frauds is that a contract involving real estate, or the sale of goods over $500, or similar agreements of a binding nature, must be in a signed writing.
Why is there litigation if the contract was not in writing? Often one of the parties, and sometimes both parties, claim that the writing was not necessary or that there was a written agreement but certain terms were not made part of that agreement because the parties understood the agreement to include that term. That may be the case in some instances (this is a separate topic I’ll discuss later, called the parol evidence rule), but not always.
If you are contemplaing an agreement with someone to buy or sell real estate, or to do anything involving property, get it in writing. It’s not a bad idea to always have an experienced attorney look at the agreement or perhaps draw it up for you. It can save you a great deal of money later if there is ever a question of what you and that other person really meant.
Posted by Nick Yonano at 05:16
Labels: real estate
