Illinois Leasing Agent Practice Exam

According to the Statute of Frauds, how must contracts for the sale or lease of real estate be?

1. Oral

2. In writing

3. Notarized

4. Signed by witnesses

The correct answer is: In writing

Contracts for the sale or lease of real estate must be in writing to be enforceable under the Statute of Frauds. This legal principle is designed to prevent fraudulent claims and misunderstandings regarding such agreements by providing a clear record that can be referenced if disputes arise. A written contract must contain essential terms such as the identities of the parties involved, a description of the property, and the terms of the lease or sale. While oral agreements might be valid in some contexts, they do not hold up under the requirements of the Statute of Frauds for real estate transactions, which emphasize the importance of written documentation in this area of law. Notarization and witness signatures can add layers of validation and protection, but they are not required for the contract to meet the basic criteria laid out by the Statute of Frauds.