Texas Real Estate Sales Agent ExamContractsMedium
A landlord and tenant verbally agree to a 10-month lease for an apartment. The tenant moves in and pays rent for two months. After the second month, the landlord decides to terminate the agreement, claiming it's not legally enforceable. Is the landlord correct, according to the Statute of Frauds?
- ANo, because the tenant has already paid rent, making the verbal agreement binding.
- BYes, because the Statute of Frauds applies to all real estate contracts.
- CNo, because leases for one year or less are generally enforceable even if verbal.
- DYes, because all leases, regardless of duration, must be in writing to be enforceable.
Show answer & explanationAnswer & explanation
Correct answer: C. No, because leases for one year or less are generally enforceable even if verbal.
The Statute of Frauds generally requires contracts for the transfer of an interest in real estate to be in writing. However, a common exception is for leases with a term of one year or less, which are typically enforceable even if made verbally.
Why the other options are wrong
- A. While payment and possession can be evidence of a verbal contract, the enforceability hinges on the Statute of Frauds exception for short-term leases, not just payment.
- B. While the Statute of Frauds applies broadly to real estate, there are specific exceptions, such as short-term leases.
- D. This is incorrect; leases for one year or less are typically an exception to the Statute of Frauds.
Statute of Frauds (Leases)
A legal principle requiring certain types of contracts, including most real estate agreements, to be in writing to be enforceable. However, leases for a term of one year or less are a common exception.
- Applies to contracts that cannot be performed within one year.
- Requires written evidence for enforceability.
- Verbal leases for one year or less are generally enforceable.
- Aims to prevent fraud and perjury.
Memory trick: W.R.I.T.E. - Written, Real estate, Impossible to perform in a Year, Executor, Goods.