New Jersey’s Statute of Frauds and Real Estate TransactionsPosted July 31, 2016
Purchasing real estate may be one of the most important business decisions for a New Jersey business entity and is certainly one of the most important transactions for the average family. Because real estate transactions commonly give rise to commercial litigation, the Legislature enacted the Statute of Frauds, which requires that real estate contracts be in writing.
By requiring that real estate contracts be in writing and signed by the seller (instead of oral), fraudulent conduct can be avoided.
Real Estate Law
Imagine a stranger walking up to you, handing you a $25,000 check, and saying, “Remember when you said that you would sell me your house for $25,000? Here’s the check.” Of course, you respond you never agreed to those terms or even met the stranger. If the stranger sued, you could be left proving the absence of an oral agreement. By requiring that certain real estate contracts be in writing, the Statute of Frauds avoids having to prove the absence of an oral agreement. Instead, it is up to the stranger to produce the written contract bearing your signature.
There are several ways that you can satisfy the Statute of Frauds for real estate transactions in New Jersey. The simplest and most straightforward way is to make sure that the terms of any sale of real estate are put in writing which includes a description of the real estate, the nature of the real estate interest, the identity of the purchaser and seller the price and all relevant terms.
New Jersey Business Law Firm
The attorneys at Foss, San Filippo & Milne, LLC are well versed in the state’s Statute of Frauds, as well as other aspects of real estate purchases, sales and business litigation. If you need legal representation or advice on real estate business or contract matters, contact our firm online or at (732) 741-2525.