What Is the Statute of Frauds?
If you’re buying, selling, or leasing real estate in Toronto, there’s one important legal rule you should be aware of: the Statute of Frauds. This law helps protect everyone involved in real estate transactions by making sure agreements are properly documented.
The Statute of Frauds was enacted in 1677 in England and was adopted in Canada and the United States. It is still part of our law in most Canadian provinces, except for British Columbia, Quebec, and Manitoba.
Types of Contracts
It states that certain types of contracts must be in writing and signed by the parties to be legally enforceable. Such contracts include:
- Contracts by an executor of an estate to pay debts of the estate from personal funds;
- Contracts by a person to guarantee the debts of another or be responsible for the tort obligations of another;
- Contracts for the sale of land or affecting any interest in land except for leases of less than three years. The doctrine of Part Performance might save a contract dealing with land even if it was not in writing if the person receiving the interest performs some acts in reliance on the offer of the person who promised to transfer the land;
- Contracts made after attaining the age of majority to ratify debt obligations incurred as a minor.
Real estate deals involve large sums of money and long-term commitments. If agreements were only verbal, misunderstandings and disputes could arise, and any contract wouldn’t hold up in court. The Statute of Frauds prevents this by ensuring all key details are written down and signed. That’s why written agreements are significant.
Our Areas of Expertise
While this law is beneficial, you will need the help of our real estate lawyer in Toronto to ensure that your transaction is legal and protected. De Krupe Law firm team has extensive knowledge in different Ontario law areas, such as:
| Real Estate Law | Wills | Litigation | Corporate Law |
| Buying and selling | Probate | Divorce | Acquisition |
The Statute of Frauds is there to protect both buyers and sellers in real estate transactions. Always insist on a written contract and consult our De Krupe Law lawyer if you have any questions.