Q: Is a verbal agreement enforceable in court? In real estate? When someone circumvents you on a transaction and purchase.

A: Under California law, certain types of contracts must be in writing to be enforceable, as mandated by the statute of frauds. This includes contracts for the sale of real property, agreements that cannot be performed within one year, contracts to pay the debt of another, and contracts for the sale of goods worth over $500.

For contracts related to real estate, the statute of frauds requires that the agreement be in writing, signed by the party against whom enforcement is sought, and contain essential terms such as the names of the parties, description of the property, purchase price, and payment terms.

It's important to note that verbal agreements may still be enforceable in certain circumstances, such as when they have been partially performed or there is other evidence of the agreement. However, in general, it's best to have important agreements in writing to ensure enforceability under California law.

A: Verbal agreements are absolutely enforceable in general; however, you have less time to bring an action in court (i.e. the statute of limitations for oral agreements is 2 years in California) as opposed to written contracts (4 years in California). There are certain exceptions to this general rule regarding the enforceability of verbal agreements, and one of them concerns real property. Ownership of real estate is treated as special under the law because it is so important to our society that we have a clear means of understanding who owns real property. Now, having stated those general concepts, your question mentions a situation where someone tried to circumvent you on a transaction/purchase, potentially indicating fraud was involved. In complicated situations like that, it's a good idea to have an attorney provide a full legal analysis of the situation to determine if there is an avenue for recovery. It's also a good idea to have an attorney help you draft a written agreement any time you're entering into an important legal agreement. I sometimes call those agreements Relationship Insurance because it provides a clear roadmap if there is a disagreement down the road.