Contracts

What is the 'statute of frauds' and how does it apply to Illinois real estate contracts?

AA law preventing fraudulent property transfers; requires notarization
BA law requiring certain contracts, including real estate contracts, to be in writing to be enforceable✓ Correct
CA federal statute preventing mortgage fraud; enforced by the FBI
DAn Illinois law requiring disclosures in all residential transactions

Explanation

The Statute of Frauds requires certain types of contracts to be in writing and signed to be legally enforceable. Real estate contracts (purchase agreements), leases for more than one year, and listing agreements must be in writing under Illinois law. Oral agreements to buy or sell real estate are generally not enforceable.

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