Updated on June 9, 2026
Statute of Frauds In Real Estate
The Statute of Frauds is a legal principle that requires certain types of contracts to be in writing in order to be enforceable. The Statute of Frauds is intended to prevent fraud and misunderstandings by requiring that key terms of certain types of agreements be committed to writing and signed by the parties.
The Statute of Frauds, California Civil Code section 1624, requires certain contracts to be in writing to be enforceable. Under the statute, contracts for the sale, gift, or financing of real property must be memorialized in a writing that satisfies the statute of frauds.
It’s important to note that contracts that are subject to the statute of frauds must include specific terms, and must be signed by the party being charged or the party’s authorized agent. These requirement have to be met to be enforceable in court.
Additionally, in California, some of the contracts are excepted from the statute of frauds such as contracts formed by payment and acceptance (or part-payment),and certain contracts that are formed under seal.
It’s always a good idea to consult with a legal professional when entering into a contract that may be subject to the Statute of Frauds to make sure that the requirements are met and that the contract is enforceable.
To Satisfy the Statute of Frauds, a Real Estate Contract Must Contain the Following:
- Signature by the “party to be charged,” who is the party against whom the contract is being enforced
- Sufficiently identify the parties to the contract and the subject matter of the contract
- Identify the property
- State the essential terms of the agreement—such as setting forth the price with a reasonable degree of certainty
- An indication that the person signing the writing made or offered the contract; this is to make sure that the person to be charged with the contract had present intent to be legally obligated by contract
Which Real Estate Contracts Must Be in Writing?
California Civil Code section 1624 identifies several categories of contracts that are subject to the statute of frauds. The most significant for real estate purposes are the following.
Real Estate Contracts That Must Be in Writing Under California Law
Contracts for the Sale of Real Property. Any agreement to buy or sell an interest in real property must be in writing. This includes residential sales, commercial transactions, vacant land, and partial interests such as a share in a tenancy in common.
Leases Exceeding One Year. A lease of real property for a term longer than one year must be in writing. Oral month-to-month tenancies are generally enforceable, but any fixed-term lease exceeding twelve months requires a signed written agreement.
Real Estate Listing Agreements. An agreement authorizing a real estate broker or agent to sell, buy, or lease real property on behalf of a principal must be in writing under Civil Code section 1624(a)(4). Oral listing agreements are unenforceable, and a broker who relies on an oral listing agreement has no right to a commission if the principal refuses to pay.
Option Agreements. An option to purchase real property grants a right to buy at a specified price within a specified period. Because exercising the option would result in a transfer of real property, the option agreement itself must be in writing to be enforceable.
Easement Agreements. A contract to grant or convey an easement over real property is subject to the statute of frauds and must be in writing. An oral promise to allow a neighbor to use a portion of your land indefinitely generally cannot be enforced as a binding easement, but it may be enforceable as a license.
Agreements to Answer for the Debt of Another in a Real Estate Context. A guarantee or surety agreement tied to a real estate obligation must also satisfy the statute of frauds.
Other real property contracts may also come under the statute of frauds, depending on the facts and the nature of the property interest involved. Examples may include:
- an agreement to create or transfer a life estate in real property;
- a contract for the sale of water rights or timber;
- a gift of real property;
- an agreement to exchange real property;
- an agreement to devise real property by will;
- an agreement to settle litigation by transferring real property;
- an agreement to secure a debt by mortgage or deed of trust, or an agreement to extend or renew the debt;
- an agreement to assume and pay a debt secured by mortgage or deed of trust.
Do Electronic Signatures and Emails Satisfy the Statute of Frauds?
In many California real estate disputes, electronic signatures and electronic records can satisfy the statute of frauds if they meet the legal requirements for a writing and signature. A DocuSign agreement, electronically signed purchase agreement, signed counteroffer, or written email exchange may matter if it identifies the parties, describes the property, includes the essential terms, and is tied to the party being charged.
California’s Uniform Electronic Transactions Act provides that an electronic record and electronic signature cannot be denied legal effect simply because they are electronic. That means electronic signatures may satisfy a legal signature requirement, and electronic records may satisfy a legal writing requirement.
That said, not every email, text message, or informal electronic communication creates an enforceable real estate contract. The dispute usually turns on whether the communication includes all material terms, whether the parties intended to be bound, and whether the message was signed or authenticated in a legally meaningful way.
A completed DocuSign purchase agreement is usually much stronger than a casual email saying, “That price works for me.” A signed counteroffer is usually stronger than an unsigned draft. A signed escrow instruction may carry more weight than a text thread discussing possible closing terms.
The safest approach is to use electronic signatures for formal real estate documents, not informal emails or text messages as a substitute for a properly drafted and signed agreement.
Can a Written Real Estate Contract Be Changed Orally?
Sometimes, but oral changes to a written real estate contract are risky. In California, a written contract is generally modified by another written agreement. An oral modification may matter in limited situations, such as when the oral change has already been carried out by the parties or another recognized legal rule applies.
This issue often comes up after the parties have already signed a purchase agreement, lease, option agreement, or escrow instruction. The dispute begins later, when one side claims the parties changed the deal through a phone call, meeting, email, text message, or informal conversation.
Common disputed oral modifications include a later closing date, a different purchase price, waiver of a contingency, seller repair credits, extension of an option deadline, or changes to lease duration or rent.
The main problem is proof. A party claiming an oral modification usually needs more than a general statement that “we agreed to change it.” A court may look at whether both sides clearly agreed, whether the change was performed, whether written communications confirm it, and whether the original contract required amendments to be in writing.
The safer approach is to document any change in a signed amendment, counteroffer, escrow instruction, lease addendum, or written confirmation signed by the party who will be bound.
Exception: Doctrine of Part Performance
There may be limited instances where an agreement will be enforced despite the lack of a writing that satisfies the statute of frauds in real estate.
For example, the doctrine of part performance may permit the enforcement of an oral agreement for the sale of property that is not accompanied by a valid writing. There are specific requirements on what the buyer must do, however. In reliance on the oral agreement, the buyer must have taken possession of the property and made a full or partial payment of the purchase price, or made valuable and substantial improvements to the property. It is not enough for the buyer to show that he or she has paid the purchase price of the property; there must be sufficient part performance of the parties’ oral agreement to remove it from the purview of the statute of frauds.
The statute of frauds covers a wide range of contracts involving real property and its impact may be significant—it may be the very issue that causes a litigant to win or lose one’s case. Therefore, an analysis of the statute of frauds is virtually always required when analyzing an agreement involving real property.
Consequences of Relying on an Oral Real Estate Agreement
A party who relies on an oral real estate agreement and later finds it unenforceable may face serious legal and practical consequences. The party may not be able to sue for specific performance to force the other side to complete the transaction. They may also have difficulty recovering the benefit of the bargain they expected from the deal.
For example, a buyer who paid a deposit under an oral agreement may not be able to force the seller to sell the property if there is no sufficient writing or recognized exception. A tenant who relied on an oral multi-year lease may have difficulty enforcing the full lease term. A broker who relies on an oral listing or commission agreement may have no enforceable right to compensation if the agreement was required to be in writing.
That does not always mean the party has no remedy. Depending on the facts, the party may still have arguments based on restitution, part performance, promissory estoppel, fraud, or recovery of money already paid. But those arguments are fact-specific and should not be treated as a substitute for a signed real estate agreement.
The practical lesson is simple: when real property rights, lease terms, purchase options, broker commissions, or transfer obligations are involved, the agreement should be documented in a signed writing before either side relies on it.
Schorr Law’s Real Estate Fraud Attorneys in Los Angeles is experienced in dealing in real property disputes, including issues that may arise from the statute of frauds. To schedule a consultation, please contact real estate lawyers in Los Angeles by phone, email, or through our contact form.
Related Post: How to Avoid Real Estate Fraud: Suggestions for Buyers and Sellers