The Statute of Fraud requires agreement to sell real estate to be in writing, with some exception Law Offices of Fred M. Duman & Associates 2807 Castro Valley Boulevard     Castro Valley, California 94546 Tel: (510) 537-3388 Fax: (510) 889-1114

Dear Mr. Duman:

For years, our elderly next door neighbor has promised to sell us his property at a discount, when he was ready to sell his home.  We have cut his lawn, trimmed his trees and bushes, and helped him in countless other ways.

Recently, we were disappointed to learn that our neighbor has listed the property for sale, completely disregarding us.

When we confronted him about it, he would not talk to us.  Can we legally make him sell us the property?

      C.N., Albany

We would need much more information to determine whether you have any claim against your elderly neighbor.  There is a long-standing legal principle known as the "Statute of Frauds", which requires that agreements for the purchase of real property be in writing, in order to be enforceable.

California Code of Civil Procedure, Section 1624 sets forth certain types of agreements that must be in writing, in order to be enforceable.  Among those agreements listed in the statute are:  contracts to sell an interest in real property; agreements to lease real property for a period longer than one (1) year;  agreements wherein a real estate agent or broker is paid to arrange a real estate sale or purchase (or a lease for more than one year); an agreement that, by its terms, is not to be performed within one (1) year from the date the agreement was made; and an agreement that, by its terms, is not to be performed during the lifetime of the promisor.

The "Statute of Frauds" has long been imposed, in one form or another, as a means to permit courts to more easily adjudicate the rights of the parties to the contract, in the event a legal dispute arises regarding the terms of the agreement.  Specifically, by requiring certain agreements to be in writing, hard physical evidence of the parties' original intentions will be available to  allow the courts to more easily determine and enforce the rights and obligations arising from such agreements.

There are some limited exceptions to the "Statute of Frauds", under which certain oral agreements may be enforced despite an absence of written terms.  For example, an oral agreement that has been fully performed may not be attacked on the grounds that it was not in writing.  An example would be where the purchase price has been fully paid, and the buyer has taken possession of the real property.

Similarly, a party who has been unjustly enriched by the other party's full or substantial performance of an otherwise unenforceable oral contract, may be subsequently "estopped" (prevented) from asserting the "Statute of Frauds" as a defense.

The Statute of Frauds does not necessarily require that all of the details of the agreement be in writing, if the essential terms of the agreement are in writing.

When there has been a actual agreement between the parties that would fall under the "Statute of Frauds", and only one party has signed the agreement (such as in a letter), the agreement may, sometimes, be enforced against the party who signed the document.  There are other exceptions to the "Statute of Frauds", as well.

Your legal rights will depend upon the particular facts involved in your specific situation.  You should promptly consult with your attorney.

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