The Statute of Frauds Explained for the Maine Real Estate Exam
Last updated: April 2026
If you are preparing for your real estate license in the Pine Tree State, mastering contract law is an absolute necessity. Among the most heavily tested legal concepts is the Statute of Frauds. While it may sound like a criminal law concept, it actually dictates the strict requirements for how real estate contracts must be formed to be legally binding. For a comprehensive overview of all topics covered on the test, be sure to bookmark our Complete Maine Exam Guide.
In this article, we will explain exactly how the Statute of Frauds applies in Maine, examine the specific state statutes you need to know, and provide practical scenarios to help you ace the contract law portion of your licensing exam.
What is the Statute of Frauds?
Originating from 17th-century English common law, the Statute of Frauds is a legal doctrine designed to prevent perjury, forgery, and dishonest conduct in high-stakes agreements. It requires that certain types of contracts be in writing and signed by the party to be charged (the person against whom enforcement is sought) to be legally enforceable in a court of law.
A massive trap for real estate students is confusing the terms void and unenforceable. If a real estate contract is made verbally, it is not automatically "void" (illegal or completely invalid). Instead, it is unenforceable. This means that if both parties voluntarily complete the verbal agreement, the transaction is valid. However, if one party backs out, the courts will not force them to perform their obligations.
The Statute of Frauds in Maine Law (M.R.S. Title 33)
In Maine, the Statute of Frauds is codified under the Maine Revised Statutes (M.R.S.) Title 33, Chapter 1, Section 51. As a prospective real estate licensee, you must understand exactly which agreements fall under this statute.
1. Contracts for the Sale of Real Estate
Any contract for the sale of land, tenements, or hereditaments (including any interest in or concerning them) must be in writing. Whether you are selling a multi-million-dollar coastal estate in Bar Harbor or a tiny vacant lot in Aroostook County, a verbal agreement to buy or sell real estate cannot be enforced in a Maine court.
2. Leases Exceeding One Year
Under Maine law, a lease agreement does not necessarily have to be in writing to be valid. However, if the lease term is for more than one year, the Statute of Frauds applies, and the lease must be written and signed. A verbal lease for exactly one year or less is technically enforceable, though professional best practice always dictates putting it in writing.
3. Contracts Not to be Performed Within One Year
If an agreement cannot possibly be completed within one year from the date it is made, it must be in writing. In real estate, this often applies to long-term installment sales contracts, rent-to-own agreements, or extended property management contracts.
4. Brokerage and Agency Agreements
While the traditional Statute of Frauds covers the transfer of real property, the Maine Real Estate Commission (MREC) has strict rules regarding agency agreements. To enforce a claim for a commission, a brokerage agreement (such as a listing agreement or a buyer representation agreement) must be in writing and contain specific expiration dates. Understanding the nuances of these written agreements is critical; you can learn more in our guide to Maine buyer vs. seller representation.
Visualizing Contract Enforceability
To better understand how the Statute of Frauds impacts different types of real estate agreements, review the chart below, which illustrates the likelihood of a verbal contract being deemed unenforceable in a Maine court dispute.
Unenforceability Rate of Verbal Agreements (%)
Exceptions to the Statute of Frauds in Maine
The law is rarely without exceptions. Maine courts recognize certain situations where a verbal real estate contract might be enforced despite the Statute of Frauds. The most common exception tested on the exam is Part Performance.
For a court to enforce a verbal real estate contract under the doctrine of part performance, the buyer must typically demonstrate substantial actions that prove the contract exists. In Maine, this generally requires a combination of:
- Paying a significant portion (or all) of the purchase price.
- Taking actual, physical possession of the property.
- Making substantial, permanent improvements to the land or property.
If a buyer only pays a deposit but does not move in or make improvements, a Maine judge is unlikely to grant an exception to the Statute of Frauds.
Practical Exam Scenarios for Maine Candidates
The Maine real estate exam rarely asks for rote definitions. Instead, it tests your applied knowledge using practical scenarios. Here are two examples of how this topic might appear on your test:
Scenario 1: The Verbal Handshake
Stephen meets a seller at a diner in Portland. They agree on a price of $350,000 for a duplex. Stephen shakes the seller's hand and hands over a $5,000 check as earnest money. The next day, the seller gets an offer for $375,000 and tells Stephen the deal is off. Can Stephen sue to force the sale?
Answer: No. Because the agreement was for the sale of real estate, it falls under the Statute of Frauds (33 M.R.S. § 51) and must be in writing to be enforceable. The handshake and the deposit alone do not satisfy the strict requirements of part performance. Stephen is entitled to his $5,000 back, but he cannot force the sale.
Scenario 2: The Verbal Lease
Sarah verbally agrees to rent a winter cabin in Sugarloaf to a ski instructor from November 1st to April 30th (a 6-month period). In December, Sarah tries to evict the instructor, claiming the lease is invalid because it wasn't in writing. Is Sarah correct?
Answer: No. The Maine Statute of Frauds only requires leases for more than one year to be in writing. Because this verbal lease is only for six months, it is legally enforceable.
Preparing for Exam Day
Contract law questions, particularly those involving the Statute of Frauds, are a common stumbling block that can negatively impact candidate scores. To see how candidates generally fare on the exam and what areas trip them up most, review the Maine pass rate statistics and difficulty.
To ensure you are fully prepared for these tricky scenario-based questions, you need high-quality practice exams. We highly recommend checking out our curated list of the best Maine study materials and resources to drill down on contract enforceability, voidable contracts, and state-specific commission rules.
Frequently Asked Questions
Does a lease for exactly one year need to be in writing in Maine?
No. Under Maine law, only leases that are for a period of more than one year must be in writing to satisfy the Statute of Frauds. A verbal lease for exactly 365 days is technically enforceable, though a written document is highly recommended to avoid disputes.
Are electronic signatures valid for satisfying the Statute of Frauds in Maine?
Yes. Maine has adopted the Uniform Electronic Transactions Act (UETA). This means that electronic contracts and electronic signatures carry the exact same legal weight as traditional ink-and-paper contracts, fully satisfying the Statute of Frauds.
What happens if a real estate contract is verbal in Maine?
A verbal contract for the sale of real estate is considered unenforceable. It is not strictly "void" (meaning if both parties go through with closing, the sale is perfectly legal), but neither party can use the court system to force the other party to complete the transaction.
Do buyer representation agreements fall under the Statute of Frauds?
While traditional real estate sales fall under the statutory Statute of Frauds, the Maine Real Estate Commission (MREC) regulations dictate that all brokerage agreements (including buyer representation and listing agreements) must be in writing to enforce the payment of a commission.
Can an email exchange satisfy the Statute of Frauds in Maine?
It can, provided the emails contain all the essential terms of the contract (property identification, price, parties involved) and demonstrate a clear intent to be bound by the agreement, complete with electronic signatures or typed names that act as signatures under UETA.
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