California Real Estate Practice Exam

According to the statute of frauds, which of the following agreements does NOT need to be in writing to be enforceable?

1. an agreement for leasing real property for more than one year

2. an agreement that employs a broker to solicit, sell, lease, or exchange real property

3. an agreement that (by its terms) is not to be performed within one year of execution of the agreement

4. a partnership agreement between two or more parties to engage in the sale or exchange of real property

The correct answer is: an agreement for leasing real property for more than one year

The statute of frauds requires certain types of contracts to be in writing to be enforceable, particularly those involving real property. However, there are exceptions to this rule based on the duration and nature of the agreements. When considering the choice that does not need to be in writing to be enforceable, an agreement for leasing real property for more than one year is indeed a type of agreement that falls under the statute of frauds and must be in writing to be valid. In contrast, an agreement for a partnership to engage in the sale or exchange of real property typically does not require a specific written format to be enforceable among partnerships—you can have verbal agreements that are legally binding under certain circumstances. This is a key factor since partnerships are generally governed by the terms set forth by the parties involved rather than seeking formal written agreements unless specified by state law. Thus, the appropriate understanding of this question rests on the nature and terms related to the agreements outlined in the choices, with the partnership agreement being the exception that does not strictly require a written form to be enforced legally.