What is the statute of frauds and how does it apply to real estate?

The statute of frauds is a legal requirement that certain contracts must be in writing and signed to be enforceable, including all contracts for the sale of real property and leases exceeding one year. The purpose is to prevent fraud and misunderstanding by requiring written evidence of the agreement's terms. Oral agreements for the sale of land are generally unenforceable even if both parties acknowledge the deal. The writing must identify the parties, describe the property, state the consideration, and contain the signatures of the parties being bound.