Idaho Real Estate Practice Exam

In Idaho real estate, which of the following is TRUE regarding oral agreements?

1. They are legally binding if witnessed

2. They can be enforced in all transactions

3. They are generally not enforceable

4. They must be recorded with the county

The correct answer is: They are generally not enforceable

In Idaho real estate, oral agreements are generally not enforceable, making the selected answer accurate. While there may be exceptions in certain circumstances, most contracts, especially those involving real estate transactions, must be in writing to be legally binding due to the Statute of Frauds. This law is designed to prevent misunderstandings related to agreements that are significant in nature, such as real estate sales, leases over a year, or other agreements that extend beyond enforceable verbal commitments. The alternatives suggest various conditions under which oral agreements might be binding or enforceable, but these do not align with the legal framework governing real estate transactions in Idaho. For instance, while witnessing might add weight to an agreement, it doesn't meet the writing requirement stipulated by law. Similarly, stating that oral agreements can be enforced in all transactions overlooks the limitations imposed by the Statute of Frauds. Lastly, the requirement to record agreements with the county pertains primarily to written documents, not oral contracts. Thus, the general principle is that oral agreements lack the necessary enforceability in real estate contexts unless they are formalized in writing.