Leasing License Practice Exam

What does the Statute of Frauds require for leases longer than one year?

1. They must be orally agreed upon

2. They must be in writing

3. They can be implied through actions

4. They require witness signatures

The correct answer is: They must be in writing

The Statute of Frauds mandates that certain types of contracts, including leases that extend beyond one year, must be in writing to be enforceable. This requirement is established to prevent potential disputes about the terms of the agreement and to provide clear evidence of the parties' intentions. By requiring a written contract, the Statute helps protect both landlords and tenants by ensuring that the specifics of the lease such as duration, rent, and other crucial terms are documented, minimizing the risk of misunderstandings or misinterpretations. Leases shorter than one year can typically be agreed upon verbally, but longer leases necessitate a written record. This written document must contain essential details and should be signed by the parties involved to ensure its validity, but the primary requirement is the writing itself. As a result, the correct course of action for leases exceeding one year is to draft a written lease agreement that satisfies the requirements of the Statute of Frauds.