What is the statute of frauds?
The statute of frauds requires certain agreements, service contracts, real estate sales, to be in writing to be legally enforceable. For an HOA, this often applies to vendor contracts, management agreements, or leases involving common areas.
Why does the statute of frauds matter?
A verbal agreement with a vendor might feel binding in the moment, but without a written contract covered by the statute of frauds, a board could find it has no real legal standing if that vendor doesn’t deliver.
When You’ll Run Into This
This becomes relevant the moment a dispute arises over an agreement that was never actually put in writing.
Legal note: this is general information, not legal advice. Rules and requirements vary by state and by community, so it is worth checking with your association’s attorney to get an accurate answer for your specific situation.
