Which of the following are requirements of a valid real estate contract?

• A. Consideration
• B. In writing and signed
• C. Lawful objective
• D. All of the above

Answer: (D)

A valid real estate contract must have three essential elements: consideration, a writing with signatures, and a lawful objective. Consideration is the something of value exchanged between the parties—typically the buyer’s promise to pay a specified price and the seller’s promise to transfer title. Without consideration, a promise isn’t enforceable as a contract. The requirement to be in writing and signed comes from the statute of frauds, which protects against fraud and evidences the agreement for important transactions like real estate. A contract that isn’t in writing and signed may not be enforceable. The contract must also have a lawful objective; it cannot require illegal acts or violate public policy, because a contract aiming at an unlawful end cannot be enforced. When all three elements are present, the contract is enforceable and valid. That’s why the best answer is all of the above.