Statute of Frauds - That law which requires that certain contracts be in
writing and signed by the parties in order to be legally enforceable.

A contract is an enforceable promise to do or not to do a certain thing.  To
be a binding promise, several essential elements are required, easily
remembered by remembering COCA COLA.

COnsideration - anything of value that influences a person to enter into a
contract, including a promise, an act, or payment of money.  Although
standard, earnest money is not required.

CApacity - adults (over 18) with mental capacity, as well as properly formed
corporations and partnerships.

COnsent - mutual consent is evidenced by a definite offer that is properly
accepted - said to be a 'meeting of the minds.' A valid offer may be revoked
any time prior to notice of acceptance or it may be  rejected by the
offeree. Acceptance must be communicated to the offeror in the exact terms
in which it was made (the 'mirror rule') - any change, no matter how slight,
results in a counteroffer (which extinguishes the original offer).

LAwful Object - The object of the contract must be lawful when the contract
is made  and possible when the contract is to be performed.

Contracts are classified as Express or Implied; Unilateral or Bilateral;
Executory or Executed; Valid, Void, or Voidable; Some contracts may be
Unenforceable under the Statute of Frauds. With a few exceptions, real
estate related contracts must be in writing to be enforcable. A verbal
contract to purchase real estate may be Valid, and Unenforceable.

A verbal contract to purchase real estate is not fraudulent, it is
Unenforceable.

Real estate contracts not required to be in writing to be
enforceable...agreements between brokers to spit commissions...leases for
more than one year.

Notice I did not say that it is a a good idea to have verbal contracts. I
have merely attempted to clarify terminology (that's what happens when one
teaches real estate principles for over 20 years :-)

Saul

Saul Klein
President, InternetCrusade

I think this is big news and will be a great benefit to REALTORS and the
people they serve.

The FTC has received thousands of real estate-related identity theft
complaints. Many consumers first learn they are victims of identity theft
when they are in the process of renting or buying a home, derailing their
real estate dreams while they work to rebuild their good name and destroyed
credit. Identity thieves may also rent or purchase a home fraudulently.
Identity theft is an important issue impacting both home buyers and real
estate professionals across the nation.

NAR is now working with the FTC on a new nationwide campaign to educate
consumers on how to minimize risk of identity theft and quickly fight back
if they become a victim: AvoID Theft: Deter, Detect, Defend . Preparing for
its official launch by early summer, the new initiative aims to educate and
empower consumers to protect themselves against identity theft and to
minimize the damage it can cause.

On behalf of our industry, NAR plans to play a key role in the fight against
identity theft by reaching consumers with much-needed information at points
where financial investments and credit is top-of-mind. To arm our members
with the materials necessary to join this effort, NAR, in cooperation with
FTC, will have numerous resources available to make it easy for any REALTOR
to communicate about identity theft to existing and potential customers.

Use these resources and help your clients, and yourself. For more info on
this go to:

http://www.realtor.org/idtheft

Saul

Saul Klein
President, InternetCrusade