EstatePass
ContractsEASYFREE

In Pennsylvania, oral real estate contracts are:

2:51
0 plays

Audio Lesson

Duration: 2:51

Question & Answer

Review the question and all answer choices

A

Fully enforceable

B

Enforceable if witnessed

C

Generally unenforceable under the Statute of Frauds

Correct Answer
D

Valid for properties under $10,000

Why is this correct?

Under Pennsylvania's Statute of Frauds, real estate contracts must be in writing to be enforceable.

Podcast Transcript

Full conversation between instructor and student

Instructor

Hey there, let's dive into today's question. It's about oral real estate contracts in Pennsylvania. How does that sound?

Student

Sure, I'm all ears. I've heard about the Statute of Frauds, but I'm not sure how it applies here.

Instructor

Exactly! This question is testing your understanding of the Statute of Frauds in the context of real estate contracts in Pennsylvania. So, the question is: "In Pennsylvania, oral real estate contracts are:"

Student

Okay, let's see... A. Fully enforceable, B. Enforceable if witnessed, C. Generally unenforceable under the Statute of Frauds, and D. Valid for properties under $10,000.

Instructor

Great job listing the options. The correct answer is C. Generally unenforceable under the Statute of Frauds. Why do you think that's the right choice?

Student

Well, I know that the Statute of Frauds is about written agreements, but I'm not sure how it specifically applies to real estate contracts.

Instructor

That's a good start. The Statute of Frauds is fundamental in real estate practice because it protects parties in high-value transactions. Real estate deals involve substantial financial commitments and property rights, which shouldn't rely on verbal agreements that can be unreliable. The correct answer is C because the Statute of Frauds in Pennsylvania mandates that contracts for the sale of real property must be in writing to be enforceable.

Student

Oh, I see! So, even if an oral contract is witnessed, it's still not enforceable?

Instructor

Exactly. Witnessing an oral contract doesn't change the fact that the Statute of Frauds requires a written agreement. The wrong options are incorrect for different reasons. Option A is wrong because oral contracts for real estate are not fully enforceable in Pennsylvania. Option B is wrong because witnessing doesn't make the contract enforceable. And option D is wrong because there's no monetary threshold in Pennsylvania that makes oral contracts valid.

Student

Got it. So, how can I remember this?

Instructor

I have a memory technique for you. It's an acronym: WRITE. It stands for W-ritten, R-eal estate, I-nvolves, T-ransactions, E-verytime. This helps you remember that in real estate, contracts must be written every time.

Student

That's a great mnemonic! Thanks for that. It'll really help me remember the importance of written agreements in real estate.

Instructor

You're welcome! And remember, when you encounter questions about real estate contracts, always default to 'must be in writing' unless specific exceptions are mentioned. Keep that in mind, and you'll be set for the exam.

Student

Thanks for the tip! I'll definitely keep that in mind. I feel more confident now.

Instructor

Great! And remember, practice makes perfect. Keep studying, and you'll do great on the exam. Good luck!

Ready to Ace Your Real Estate Exam?

Access 2,500+ free podcast episodes covering all 11 exam topics.