PSI Oklahoma Real Estate Practice Test

Which of the following reflects a legally binding agreement in real estate transactions?

1. Oral agreement among friends

2. Written lease with signatures

3. Informal handshake deal

4. Verbal promise from a landlord

The correct answer is: Written lease with signatures

A written lease with signatures constitutes a legally binding agreement in real estate transactions because it fulfills the requirements of a contract, which include offer, acceptance, and consideration. A written document provides clarity on the terms and conditions of the lease, and the signatures of both parties demonstrate their consent and commitment to uphold the agreement. In real estate, enforceability often hinges on having a written document that details the obligations and rights of the parties involved, allowing for legal recourse in case of disputes. Unlike oral agreements or informal handshake deals, which are often difficult to prove and enforce, a written lease is recognized by law as a formal contract. This ensures that both the tenant and landlord have legal protections regarding their rights and responsibilities. While oral agreements or handshake deals might be made in informal situations, they typically lack the necessary legal backing that a written contract provides, making them harder to enforce. Similarly, a verbal promise from a landlord lacks the required documentation to hold up in legal scenarios. Thus, the written lease stands as the clear choice for a legally binding agreement.