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 to be enforceable

3. They can be modified verbally at any time

4. They must be notarized

The correct answer is: They must be in writing to be enforceable

The Statute of Frauds establishes that certain types of contracts, including leases that extend beyond one year, must be in writing to be enforceable. This legal requirement is designed to prevent fraudulent claims and misunderstandings regarding the terms of a lease agreement. By requiring a written document, the Statute of Frauds facilitates clear communication of the rights and obligations of the parties involved and serves as concrete evidence in case of disputes. Leases that are shorter than one year can often be enforced based on verbal agreements, but for those extending beyond that duration, the necessity of a written format is crucial for validity. It is also important to note that while contracts for leases longer than one year must be written, they do not necessarily need to be notarized, which distinguishes this requirement from other legal documentation processes. This understanding of the Statute of Frauds is fundamental for anyone involved in property leasing and management.