Texas Real Estate Brokerage Sales Apprentice Education (SAE) Practice Exam

Are written agreements required for leases longer than one year?

1. Yes

2. No

3. Only if the parties agree

4. Only for sales contracts

The correct answer is: Yes

In Texas, written agreements are required for leases longer than one year due to the Statute of Frauds, which mandates that certain types of contracts must be in writing to be enforceable. This includes lease agreements that extend beyond one year. The purpose of the Statute of Frauds is to provide clarity and reduce disputes by ensuring that the terms and conditions of significant agreements are documented in writing. By requiring written leases for terms longer than one year, both landlords and tenants have a clear record of their rights and obligations, which helps prevent misunderstandings and provides legal protection for both parties. Those involved in real estate transactions must be aware of these requirements to ensure compliance with state law and to safeguard their interests throughout the leasing process. Shorter leases, generally defined as those one year or less, may not require a written agreement to be enforceable, but it is often still advisable to have one to establish clear terms. However, the other options presented do not accurately reflect the legal requirements under Texas law regarding the documentation of lease agreements for longer durations.