Texas Real Estate Contracts 4 th Edition © 2015 OnCourse Learning

Chapter 6: The Statute of Frauds and other Writing Requirements © 2015 OnCourse Learning

The Statute of Frauds in General The Statute of Frauds arose as an effort to prevent fraud and perjury as to the actual terms of a contract by requiring certain contracts to be in writing and signed by the party to be charged or by his or her authorized agent. © 2015 OnCourse Learning

Contracts for the Sale of Goods For contracts for the sale of goods of $500 or more, the Statute of Frauds requires that the contract be in writing. © 2015 OnCourse Learning

Application to Contracts for the Sale of Land or Interests in Land The Statute of Frauds also requires that contracts for the sale of land or interests in land be in writing to be enforceable by a court of law. © 2015 OnCourse Learning

Contracts Not to Be Performed within One Year For contracts that cannot possibly be performed within one year, the Statute of Frauds requires those contracts to be in writing. © 2015 OnCourse Learning

The Contents of the Statute of Frauds Memorandum A memorandum is an instrument in writing that is signed by the party against whom enforcement is sought, or his or her representative. It should at least contain an identification of the land by an adequate property description, the price of the property, and a date for performance. The form of the writing, however, is immaterial. © 2015 OnCourse Learning

Property Descriptions Metes and Bounds Lot and Block Condominium Timeshares © 2015 OnCourse Learning

Metes and Bounds Metes and bounds is a common method for describing rural property in Texas. A metes and bounds description may also be used to describe urban property that is not part of a subdivision. © 2015 OnCourse Learning

Lot and Block A lot and block description is a common method for describing property in subdivisions. © 2015 OnCourse Learning

Condominium Condominium ownership involves ownership of the unit plus an undivided ownership in the land underneath and an undivided ownership interest in the common elements on the premises, such as the stairways and the sidewalks. © 2015 OnCourse Learning

Timeshares A timeshare interest is a coownership interest among multiple owners whereby the co-owners agree that their ownership is limited to a certain time period each year. © 2015 OnCourse Learning

Part Performance Exception Allows for the enforcement of an oral agreement which would normally fall within the provisions of the Statute of Frauds. Requires – an oral agreement, – partial consideration was paid, – the purchaser took possession of the property, and – the purchaser made permanent and valuable improvements to the property. © 2015 OnCourse Learning

Other Writing Requirements Commission Agreements Independent Contractor Agreements © 2015 OnCourse Learning

Commission Agreements Commission agreements between a broker and his or her client must be in writing to be enforceable. © 2015 OnCourse Learning

Independent Contractor Agreements According to federal law, an independent contractor agreement between a real estate salesperson and his or her sponsoring broker must be in writing. © 2015 OnCourse Learning