Under New York law, which statement about real property contracts is correct?

• A. Oral agreements for the sale of real property are enforceable.
• B. A land purchase option must be in writing signed by the party to be charged.
• C. The statute of frauds does not apply to options.
• D. An option never creates an interest in real property.

Answer: (B)

In New York, contracts involving real property are governed by the Statute of Frauds, so they must be in writing to be enforceable. A land purchase option is a contract that gives someone the right to buy land, and that falls squarely within the statute’s scope. To be enforceable, the option must be in writing and signed by the party against whom enforcement is sought. Without a signed writing, the option cannot be enforced, even if the buyer later acts on it during the option period.

This is why the option’s being in writing is essential: it confirms essential terms like the property, the price, and the duration of the option, and it shows the party’s assent to be bound. While an oral agreement to sell real property is generally unenforceable, and the statute does apply to options, the idea that an option never creates any interest in real property is misleading. An option creates a contractual right to acquire an interest in land, and that right must be memorialized in a signed writing under the statute.