All following contracts require written form for enforceability in California except:
Audio Lesson
Duration: 2:41
Question & Answer
Review the question and all answer choices
Real estate lease for one-year term
Purchase and sale agreement for real estate
The purchase and sale agreement for real estate must be in writing under California's Statute of Frauds (Civil Code §1624) as it involves an interest in real property worth more than $500.
Listing agreement
Listing agreements must be in writing under California Civil Code §1624 and the Real Estate Law as they create an agency relationship involving real property for more than one year.
Buyer loan payment agreement secured by property lien
A buyer loan payment agreement secured by property lien must be in writing as it creates a security interest in real property, which falls under the Statute of Frauds requirements.
Deep Analysis
AI-powered in-depth explanation of this concept
This question tests understanding of the Statute of Frauds requirements in California, which mandate certain contracts to be in writing to be enforceable. In real estate practice, this is fundamental as oral agreements for significant transactions can lead to disputes and unenforceable contracts. The question distinguishes between contracts that require written documentation and those that don't. Option A is correct because California Civil Code §1624(c) specifically exempts leases for one year or less from the writing requirement, while all other options involve contracts that must be in writing under California law. This question is challenging because it requires knowledge of specific exemptions to the general rule that real estate contracts must be in writing, and understanding the distinction between lease terms and other real estate agreements.
Knowledge Background
Essential context and foundational knowledge
The Statute of Frauds is a legal principle requiring certain contracts to be in writing to be enforceable. In California, Civil Code §1624 outlines specific contracts that must be written, including agreements for the sale of real property, leases longer than one year, and agreements that cannot be performed within one year. The real estate lease exemption for one-year terms or less is significant because it allows for oral agreements for shorter leases, while all other real estate transactions typically require written documentation to be legally enforceable.
Think of the one-year lease exception as a 'short-term pass' that doesn't require paperwork, like a day pass at a gym versus an annual membership that requires a signed contract.
When encountering lease questions on the exam, mentally check if the term is one year or less to determine if writing is required.
When encountering Statute of Frauds questions, remember that only leases for one year or less are exempt from the writing requirement in California; all other real estate contracts must be in writing to be enforceable.
Real World Application
How this concept applies in actual real estate practice
A property manager orally agrees with a tenant to rent an apartment for 11 months at $2,000 per month. Despite having no written lease, the arrangement is enforceable in California because it's for less than one year. However, if the same manager orally agreed to a property sale, a listing agreement, or a secured loan, those contracts would be unenforceable without proper documentation, potentially resulting in significant financial losses and legal disputes for all parties involved.
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