California Real Estate Practice Exam

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Which of the following agreements must be in writing?

  1. A verbal lease for six months

  2. A lease for two years

  3. An employment contract for a salesperson

  4. A verbal agreement to sell personal property over $500

The correct answer is: A lease for two years

According to the Statute of Frauds, any agreement that cannot be completed within one year must be in writing in order to be legally binding. Option A may seem like the correct answer, but since a verbal lease for six months can be completed within a year, it does not fall under the requirement for a written agreement. Option C is also incorrect because employment contracts do not have a time limit and can technically be completed within a year. Option D is incorrect because the threshold for a written agreement is $500 or more, not under $500. Therefore, option B is the only choice that meets the requirement of being a lease for longer than one year.

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