Also known as: land contract provisions · installment land contract clause
Written by attorneys · grounded in primary & secondary sources — see below
A provision of the Statute of Frauds that renders a contract for the sale of an interest in land unenforceable unless evidenced by a signed writing that reasonably identifies the subject matter and states the essential terms.
Landon Long orally agreed at a farm auction to sell his forty-acre pasture with water rights to Lexicon Media. The parties shook hands but signed nothing. When Long later refused to convey, Lexicon Media sued for specific performance. The court held the agreement unenforceable because no signed writing evidenced the land sale.
Layla Lane orally agreed to lease a retail space to Lumen Capital for eleven months beginning the following month. Lane later refused to honor the deal. Lumen Capital sought enforcement, but the court treated the lease as outside the land contract provision because the term did not exceed one year under the applicable state statute.
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The provision covers any promise to transfer or buy an interest in land, including sales of parcels with water rights or buildings. It requires a signed writing unless an exception such as part performance applies. Oral handshakes alone do not satisfy the rule.
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Short leases not exceeding one year are typically excepted from the provision in most states. The exception stems from historical treatment of leases as conveyances rather than contracts for sale. Longer leases or contracts to lease remain subject to the writing requirement.
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The writing must be signed by the party to be charged and must reasonably identify the land and state the essential terms such as price. Emails referencing the parties, property, and price may suffice if they meet these standards. Omissions of delivery or payment schedules can render the memorandum insufficient.
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Part performance typically requires the buyer to take possession and make substantial improvements that unequivocally refer to the contract. Preparatory steps such as obtaining permits or clearing land without possession usually fall short. Courts apply the exception narrowly to prevent injustice while preserving the writing requirement.
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