California Real Estate SalespersonContractsMedium
Under California's Statute of Frauds, which of the following real estate-related agreements is generally required to be in writing to be enforceable?
- AA month-to-month oral rental agreement for an apartment
- BAn oral agreement to lease commercial space for eight months
- CAn agreement authorizing a broker to sell real property for a commission
- DAn oral agreement between neighbors to informally share a driveway for one season
Show answer & explanationAnswer & explanation
Correct answer: C. An agreement authorizing a broker to sell real property for a commission
California's Statute of Frauds requires that agreements employing an agent or broker to buy, sell, or lease real estate for a commission be in writing and signed to be enforceable. Leases for one year or less and month-to-month tenancies are generally exempt from the writing requirement.
Why the other options are wrong
- A. Month-to-month rental agreements are typically exempt from the Statute of Frauds writing requirement.
- B. Leases for a term of one year or less can generally be oral and still enforceable.
- D. Short-term informal arrangements not involving real estate transfer are not covered by the Statute of Frauds.
Statute of Frauds - Real Estate
California law requires certain real estate agreements, including broker listing agreements and leases over one year, to be in writing and signed to be enforceable.
- Applies to sales contracts, listing agreements, and leases over one year
- Leases of one year or less can be oral
- Purpose is to prevent fraud and provide reliable evidence of terms
- Failure to comply can render the agreement unenforceable, though not automatically void
Memory trick: 'Sign it or Forget it'—real estate deals over a year need ink on paper.