Contracts, 12% of the examination
Statute of frauds
The rule requiring certain contracts to be in writing to be enforceable.
In real estate, the statute generally covers agreements to sell real property or an interest in it, leases longer than one year, and agreements authorizing a broker to buy or sell real property for compensation. The required writing must identify the parties and subject matter and contain the essential terms, with a signature by the party against whom enforcement is sought. An oral agreement can still create agency duties through conduct even when the broker cannot enforce an oral promise to pay a sales commission. Statutory and equitable exceptions are fact specific, so do not treat every oral real estate arrangement as automatically void.
See also
Test the distinction
A relevant question from Contracts, selected because its facts or explanation use this concept.
Under the statute of frauds, which of these agreements must be in writing to be enforceable?
Written to DRE's published topic list. Not a real examination question, since reproducing those is a misdemeanor under B&P Code section 123.
Primary sources
Use these authorities when a course summary, forum answer, or older flashcard conflicts with the current California rule.