Written Contract for Sale or Real Estate Fails to Satisfy Statute of Frauds Because it Lacked Material Non-Price Terms

On August 7, 2024, the Second Department issued a decision in South Shore Estates, Inc. v. Guy Friedman Realty Corp., 2024 NY Slip Op. 04156, holding that a written contract for the sale of real estate nonetheless failed to satisfy the statute of frauds because it lacked material non-price terms, explaining:

The twenty-fourth cause of action alleged that the defendants breached the 2010 Agreement by failing to sell to the plaintiffs an interest in certain real property. To satisfy the statute of frauds, a memorandum evidencing a contract and subscribed by the party to be charged must designate the parties, identify and describe the subject matter, and state all of the essential terms of a complete agreement, In a real estate transaction, the essential terms of a contract typically include the purchase price, the time and terms of payment, the required financing, the closing date, the quality of title to be conveyed, the risk of loss during the sale period, and adjustments for taxes and utilities. Here, the defendants established, prima facie, that the 2011 Agreement did not satisfy the statute of frauds. Although the agreement stated the purchase price and to whom the payment should be made, the agreement failed to state the time and terms of payment, the required financing, the closing date, the quality of title, the risk of loss, or adjustments for taxes and utilities. In opposition, the plaintiffs failed to raise a triable issue of fact in that regard.

(Internal quotations omitted).

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