Question 1

Are oral real estate agreements enforceable in Florida?

Accepted Answer

Generally no: Florida’s Statute of Frauds (Section 725.01) requires contracts for the sale of real property to be in writing and signed by the party to be charged. An oral agreement to buy or sell real property is generally unenforceable. However, exceptions exist: part performance (if the buyer has: paid all or part of the purchase price, taken possession of the property, and made valuable improvements to the property, the court may enforce the oral agreement), equitable estoppel (if one party has relied on the oral agreement to their detriment, the court may enforce the agreement to prevent injustice), and admission (if the party against whom enforcement is sought admits the existence of the agreement).

Question 2

What types of real estate agreements must be in writing in Florida?

Accepted Answer

Written requirement: the Statute of Frauds requires writing for: contracts for the sale of real property, leases for more than one year, easements and other interests in real property, and listing agreements (FREC requires written listing agreements for advertising). Agreements that do NOT need to be in writing: leases for one year or less, month-to-month tenancies, and verbal modifications to written leases (in some circumstances). Even if not required, a written agreement is always preferred to avoid disputes about the terms.

Question 3

What is the part performance exception in Florida?

Accepted Answer

Part performance: a court may enforce an oral real estate agreement if the party seeking enforcement can show: payment of all or part of the purchase price (payment alone is usually not sufficient), possession of the property (the buyer has taken physical possession), and valuable improvements (the buyer has made improvements to the property). All three elements are typically required. The doctrine prevents: unjust enrichment (the seller keeping both the property and the buyer’s payment/improvements), and fraud (the Statute of Frauds is designed to prevent fraud; but it should not be used to perpetrate fraud by allowing one party to benefit from the other’s reliance on the oral agreement).

Oral Agreement in Real Estate

Oral Agreements in Florida Real Estate

Statute of Frauds

Exceptions

Best Practice

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