Exam 12: Genuineness of Assent and Statute of Frauds

Correct Answer:

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Some contracts that transfer an ownership interest in land must be in writing under the Statute of Frauds.These interests include the following:
1.Mortgages: Borrowers often give a lender an interest in real property as security for the repayment of a loan.This action must be done through the use of a written mortgage or deed of trust.
Example: Amy purchases a house for $750,000.She pays $150,000 toward the payment of the house and borrows $600,000 of the purchase price from Royal Bank.Royal Bank requires that the house be collateral for the loan and takes a mortgage on the house.Here,the mortgage between Amy and Royal Bank must be in writing to be enforceable.
2.Lease: A lease is the transfer of the right to use real property for a specified period of time.Most Statutes of Frauds require leases for a term more than one year to be in writing.
3.Life estates: On some occasions,a person is given a life estate in real property.In other words,the person has an interest in the real property for the person's lifetime,and the interest will be transferred to another party on that person's death.A life estate is an ownership interest that must be in writing under the Statute of Frauds.
4.Easements: An easement is a given or required right to use another person's land without owning or leasing it.Easements may be either express or implied.Express easements must be in writing to be enforceable,while implied easements need not be written.