Hawaii Statute of Frauds Explained for the Real Estate Exam

Last updated: April 2026

If you are preparing for your Hawaii real estate license, understanding contract law is absolutely critical. One of the most tested, yet frequently misunderstood, concepts in real estate contract law is the Statute of Frauds. Whether you are facilitating a multi-million dollar beachfront sale in Maui or a month-to-month rental in Honolulu, knowing which agreements must be in writing will protect you and your future clients.

This article breaks down everything you need to know about the Statute of Frauds under Hawaii law. For a broader overview of all exam topics, be sure to bookmark our Complete Hawaii Exam Guide.

What is the Statute of Frauds?

Originating from 17th-century English common law, the Statute of Frauds is a legal concept designed to prevent fraud, perjury, and misunderstandings by requiring certain types of contracts to be in writing and signed by the party to be bound (or "charged") by the agreement.

In Hawaii, the Statute of Frauds is codified in the Hawaii Revised Statutes (HRS) Chapter 656. For real estate professionals, the golden rule of HRS Chapter 656 is simple: If it involves the transfer of an interest in real estate, get it in writing.

Unenforceable vs. Void Contracts

A classic trick question on the Hawaii real estate exam involves the legal status of an oral real estate contract. If two parties verbally agree to a real estate sale, the contract is not necessarily void (illegal or impossible), but it is unenforceable. This means that if one party backs out, the courts will not force them to complete the transaction or pay damages, because the agreement does not satisfy the Statute of Frauds.

How the Statute of Frauds Applies to Hawaii Real Estate

Under HRS Chapter 656, several specific real estate agreements must be in writing to be legally enforceable in a Hawaii court. These include:

Purchase and Sale Contracts: Any agreement to buy or sell real property.
Deeds and Mortgages: Instruments that convey title or create a lien on a property.
Easements: Rights to use another's land (for example, navigating complex Hawaii water rights and riparian law often requires written, recorded easements).
Listing Agreements: Contracts between a seller and a brokerage to list a property.
Options to Purchase: Agreements giving a buyer the right to purchase property at a set price within a certain timeframe.

The "One-Year Rule" for Leases

There is one major exception to the strict "must be in writing" rule for real estate, and it frequently appears on the state exam. Leases for one year or less do not need to be in writing to be enforceable.

Practical Scenario: If a landlord verbally agrees to rent a Waikiki condo to a tenant on a month-to-month basis, or for exactly 12 months, that oral lease is valid and enforceable. However, if the landlord and tenant verbally agree to a 13-month lease, that agreement violates the Statute of Frauds and is legally unenforceable.

Essential Elements of a Written Real Estate Contract

Just writing "I agree to sell my house" on a napkin is rarely enough to satisfy the courts. To strictly comply with the Statute of Frauds in Hawaii, the written document must contain specific essential elements:

Identification of the Parties: The legal names of the buyer and seller (or landlord and tenant).
Adequate Property Description: The property must be unmistakably identified. While a street address is helpful, legal documents often require formal identification, such as Hawaii metes and bounds legal descriptions or the Tax Map Key (TMK).
Essential Terms and Conditions: The purchase price, financing terms, and closing dates.
Signatures: The document must be signed by the party against whom enforcement is sought (usually both parties sign to ensure mutual enforceability).

Common Statute of Frauds Disputes in Hawaii Real Estate (%)

Exceptions to the Statute of Frauds

While the law is strict, Hawaii courts recognize a legal doctrine known as Partial Performance, which can sometimes serve as an exception to the Statute of Frauds.

If an oral contract for the sale of land was made, a court might enforce it if the buyer has taken substantial steps that prove the contract exists. In Hawaii, partial performance typically requires a combination of the following:

The buyer has paid a significant portion (or all) of the purchase price.
The buyer has taken physical possession of the property.
The buyer has made valuable, permanent improvements to the land.

Note for the Exam: Do not rely on partial performance as a standard practice. It is a messy, expensive legal remedy. The exam will expect you to know that the best practice is always to put contracts in writing.

Electronic Signatures: The Modern Equivalent

You might wonder how the Statute of Frauds applies in today's digital world, where transactions are completed via email and digital portals. Hawaii has adopted the Uniform Electronic Transactions Act (UETA).

Under UETA, electronic records and electronic signatures (like DocuSign or dotloop) carry the exact same legal weight as traditional paper and wet-ink signatures. As long as both parties consent to conducting business electronically, an e-signed purchase contract fully satisfies the Hawaii Statute of Frauds.

Study Strategies for the Hawaii Licensing Exam

Memorizing contract law requires strategy. Because the Statute of Frauds overlaps with leases, deeds, and agency agreements, you need to review it regularly. We highly recommend using spaced repetition for exam prep. By revisiting the "one-year lease rule" and the definition of "unenforceable" at strategically spaced intervals, you will lock these concepts into your long-term memory for test day.

Frequently Asked Questions (FAQs)

1. Does a month-to-month lease in Hawaii need to be in writing?

No. Under the Hawaii Statute of Frauds, leases for a period of one year or less are enforceable even if they are oral. However, the Hawaii Real Estate Commission strongly recommends written leases for all tenancies to prevent disputes.

2. What happens if a real estate sales contract is not in writing?

If a real estate sales contract is verbal, it is considered unenforceable. This means neither party can use the court system to force the other party to complete the sale or pay damages for backing out.

3. Are electronic signatures valid under the Hawaii Statute of Frauds?

Yes. Hawaii's adoption of the Uniform Electronic Transactions Act (UETA) ensures that legally compliant electronic signatures satisfy the "in writing" requirement of the Statute of Frauds.

4. Can a real estate broker enforce a verbal listing agreement in Hawaii?

No. Listing agreements and buyer representation agreements must be in writing to be legally enforceable. A broker cannot sue for a commission based solely on a verbal promise to list a property.

5. What is the difference between a void contract and an unenforceable contract?

A void contract lacks an essential element of a contract (like legal purpose) and has no legal effect whatsoever. An unenforceable contract (like an oral real estate sale) has the elements of a valid contract, but the courts will not compel the parties to perform because it fails to meet statutory requirements like the Statute of Frauds.