In this Elder Law Minute, Kaye DeSelms Dent explains the statute of frauds and why real estate transactions must be in writing to be legally enforceable.
Statute of Frauds in Illinois Real Estate
Hi, I’m Kaye DeSelms Dent with Dent Coulson Elder Law here with an elder law minute for you. These videos are intended to educate you about the elder care journey which begins earlier in life than you might think. We hope that you find them useful and if you have further questions, please call us at Dent Coulson Elderlaw.
What Is the Statute of Frauds
Today I want to mention to you something called the statute of frauds. That’s sounds more impressive than it actually is, but it is very meaningful. And pretty much every jurisdiction in the US has this concept codified. And it’s something we learn pretty much the first week in property class in law school.
Why Real Estate Contracts Must Be in Writing
In order for a real estate transaction to be valid, to convey real estate to another person, the contract has to be in writing.
So, I can have an oral lease. Technically, that comes with its own risks, and that’s a whole other topic. But if I want to sell you my house, I can’t do that on a handshake. We have to have a written contract for it to be enforcable.
Common Situations We See
There are some very good reasons for that and I’m not going to go into the whole hourong lecture like my property professor gave 33 years ago or so, but it’s something that we run into frequently because a client will come to us either as a part of probate or trust administration or even just as part of of planning and knowing that we handle real estate conveyances.
say, you know, my my brother’s going to buy this, my son’s going to buy me out of the farm, whatever the situation may be, and they don’t always appreciate that.
Why Details Matter in Real Estate Contracts
We need a written contract, even if it’s with somebody that you trust implicitly, because you need all of those terms set out.
There are terms concerning how much is being paid, what the price is based on. For instance, with farmland per acre value, is a survey going to be required by either the buyer or the seller? Who’s going to pay for that survey? If the survey shows that there is 1.9 acres, but the deed says 1.5, is the price going to be adjusted as a result of the survey?
Is there going to be an inspection? If there’s a building, who’s going to pay for that? How many days do they have to do it?
And you can see the list goes on and on and on. It’s very important to think about all of these terms and to have them down in a in a comprehensive real estate contract.
Role of Realtors and Standard Forms
If you use a realtor, the realtor is going to have some vetted forms that they use as part of their basically regulations and there are going to be some required provisions on those forms because of the way the laws work concerning disclosures and real estate conveyances.
Closing
At Dent Coulson Elder Law, we do help clients with real estate contracts, whether it’s reviewing them, drafting them, assisting clients with sales, um especially as a part of probate and trust administration.
And we would be happy to help you with your situation.
But understand that we can’t do a real estate sale or conveyance just on a handshake. And there’s a good reason for that. It’s a it’s a very dangerous thing to do and it could end up costing one party or the other a lot of time and money in the long run.
So again, with even some real estate matters aside from estate planning, Dent Coulson Elder Law is here to help.
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“Your Trusted Advisor on the Elder Care Journey”
Dent-Coulson Elder Law is dedicated to providing families in the St. Louis area with their Elder Law needs. Our practice areas include Asset Preservation Planning, Veterans Benefits, Medicaid Eligibility, Alzheimer’s Planning, Special Needs Planning, Estate Planning and more. We understand the financial challenges you may face as you and your loved ones grow older. At Dent-Coulson Elder Law, our clients’ well-being is our number one priority. For immediate help, call (618) 632-7000 (IL) or (314) 567-9292 (MO), or Contact Us and we will get in touch as soon as possible.