Under the Massachusetts Statute of Frauds (MGL Chapter 259, Section 1), all of the following types of real estate agreements must be in writing to be enforceable EXCEPT:
Correct Answer
C) A buyer's oral agreement to pay a broker's commission if the broker finds a suitable property
Under the Massachusetts Statute of Frauds (MGL Chapter 259, Section 1), certain agreements must be in writing, including contracts for the sale of land, leases for more than one year, and listing agreements. However, a buyer's oral promise to pay a broker's commission is not automatically required to be in writing under the same Statute of Frauds provisions that govern real estate sales contracts. While it is strongly advisable to have commission agreements in writing, and while the broker may face practical difficulty enforcing an oral commission agreement, the specific Statute of Frauds provision most directly requiring written form applies to contracts for the sale of land — not to every oral commission arrangement. Note: This is a nuanced area; listing agreements in Massachusetts must be in writing under licensing regulations, but a buyer's oral commission promise occupies a different legal category.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A counteroffer is a response to an original offer that changes one or more terms of the offer, effectively rejecting the original offer and creating a new offer. The party who makes the counteroffer becomes the new offeror.
Earnest money is a deposit made by the buyer at the time of the offer or shortly after to demonstrate good faith and serious intent to purchase the property. It is also called a good faith deposit.
Equitable title is the buyer's interest in a property after a purchase contract is signed but before closing, giving the buyer the right to acquire legal title in the future. The seller retains legal title until the deed is delivered at closing.
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Specific performance in North Dakota:
- → In a contract for deed (land contract), who retains legal title to the property until the purchase price is fully paid?
- → Which of the following is NOT required for a valid bill of sale?
- → A Nevada real estate salesperson is helping a buyer draft a purchase agreement. Which of the following is NOT a required element for a Nevada residential purchase agreement to be legally enforceable?
- → Sawyer Iverson is reviewing an Illinois issue in Joliet. The person assumes that attorney review automatically replaces every inspection, appraisal, or financing deadline in a standard Illinois residential contract. Which statement best applies?
- → Tom and Linda sign a purchase agreement for a home in Hartford, Connecticut. The agreement includes a financing contingency stating that if Tom cannot obtain a mortgage commitment within 21 days, either party may void the contract. On day 19, Tom's lender issues a written mortgage commitment. On day 22, Tom changes his mind and tries to void the contract by claiming the financing contingency was not satisfied. Which of the following best describes the legal status of the contract?
- → Avery Jenkins is reviewing an Illinois issue in Normal. The person asks what happens if neither attorney sends a disapproval or proposed change during the standard review period. Which statement best applies?
- → Under Montana law, a purchase agreement for residential real property becomes legally binding on the seller when which of the following occurs?
- → Johnny wants the seller's patio furniture included in his purchase of a house. Before the offer is signed and delivered to the seller, he asks his agent to attach a page covering the furniture to the offer. That attached page is best described as:
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- → A contract where one party uses threats to force the other party to sign is considered:
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