1. Under the statute of frauds, a real estate sales contract must be:
Answer & explanation
Answer: C. The statute of frauds requires real estate sales contracts to be in writing and signed to be enforceable.
law
fraud
Fraud is an intentional misrepresentation or concealment of a material fact that another person reasonably relies on and is harmed by. In real estate it can include lying about a property's condition or knowingly hiding a defect. A contract induced by fraud is generally voidable by the injured party, who may also seek damages. Licensees who commit fraud risk discipline, lawsuits, and possible criminal charges.
- Exam tip
- Separate fraud (intentional) from negligent misrepresentation (careless) and puffing (exaggerated opinion, generally not actionable). Fraud makes a contract voidable, not void.
- Example
- A seller paints over water stains and tells the buyer the roof never leaked, knowing it does. After closing the buyer finds the leak and may sue for fraud.
Related terms & state variants
Sources
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Last verified: 2026-10-23