Learn The Statute Of Fraud In this Viral Video

When you buy a house, there are countless things that you have to manage at the same time. Many moving parts go into a single sale, from organizing your things and moving from your old home to preparing your new space and settling finances. One thing that many overlook is the importance of the contract itself. Though not the best home-buying aspect, a contract outlines a sale’s important terms and conditions. In some instances, people might consider selling or purchasing property with a verbal agreement or handshake. But is this legally binding? Today, we will cover the significant statute of fraud related to purchases and realty sales.

What is The Statute of Frauds? 

The statute of fraud is a legal statute that requires certain contracts to be documented in writing and signed by both parties to be enforceable. This statute prevents contract fraud or confusion, which is especially important in significant transactions such as selling land or homes.

Generally, the statute of fraud applies to contracts involving:

• Contracts that extend past a year.
• Contracts involving realty or the sale of land. 
• Contracts regarding marriage. 
• Contracts for the transfer of goods over $500 in value. 
• Contracts regarding liabilities and responsibilities for debt. 

Certain cases may make an oral agreement enforceable even under the statute of fraud. Sometimes, if parties agree under oath that they made an oral contract, it can be enforceable to an extent. Likewise, there is the idea of ‘partial performance’ in which parties partially fulfill their ends of an oral agreement. A court can see the contract through if a partial agreement is underway. This is especially true if the partial execution opposes the action it would take to reverse the contract.

In realty transactions, the statute of fraud protects parties from dangerous contracts or contract disputes. If someone engages in a contract fraudulently, the statute of fraud protects the other party from the contract becoming enforceable. Likewise, if a party willingly agrees to a sale and tries to back out at the last minute, the other party can ensure that the contract remains enforceable under the statute. Aside from extreme cases, parties can usually resolve these confusions and disputes between themselves or with the help of professional legal counsel. In the worst cases, a court may need to resolve the conflicts.

Is a Handshake Legally Binding? 

Things can get confusing quickly regarding the status of handshakes in the legal sphere. Handshakes can count as a legally binding agreement, although usually in very specific law-stakes situations. A written agreement is usually required within big transactions such as realty contracts or long-term contracts. 

Most regions fall within the statute of fraud, meaning many contracts must be in writing to be enforceable. Even if two parties willingly make a handshake agreement, the terms are not legally binding for many contracts. 

Handshakes and oral agreements can be fully legally binding for small agreements. Handshake agreements frequently occur in business or other settings where oral communication is common.

If you have made an oral agreement, you can always seek the help of a legal professional to confirm if it is legally binding. Not only do they understand intricate legalities, but they also help resolve conflicts that may arise from them. Oral agreements are usually hard to prove, but having recorded proof or witnesses can help solidify the deal legally. 

Statute of Frauds In Viral Realty Video 

One great example of how the statute of fraud affects oral agreements is this clip of a viral realty dispute. In the clip, a man describes how he supposedly paid $200,000 for a property. Instead of the traditional means of a sale, he made a handshake agreement to seal the deal. With this, he explains that he technically does not have his name on the title, so he still doesn’t fully own the land despite his payment and handshake agreement. 

In the end, he continues to argue about the dispute with others in the clip. He claims that he and the other party signed a document besides their handshake, but the video does not show this document.

Attorney Ugo Lord’s Analysis 

Ugo Lord, a highly experienced attorney, reacted to this video. He describes the statute of fraud as it relates to realty agreements. As mentioned above, Lord asserts that the statute requires realty agreements to be written and signed to be enforceable. Therefore, if the man only made a handshake agreement, he would receive no court support, as it violates the fraud statute.

Luckily, the man may have a legal case. He stated that the other party took his money and signed a document to solidify the agreement. Since the man received compensation and partially executed the agreement, the handshake agreement would likely be enforceable if taken to court.

While contracts can be lengthy and dull, they are crucial for ensuring that all aspects of an agreement are properly addressed. So, next time you enter into an agreement, save the handshake after signing a proper document!