New York Law (NYLE) Practice Exam

In order to satisfy the Statute of Frauds, which of the following is NOT necessary for a real property sale contract?

1. Purchase price

2. Description of the real property

3. Names of transacting parties

4. An earnest deposit

The correct answer is: An earnest deposit

To satisfy the Statute of Frauds in New York concerning contracts for the sale of real estate, certain elements must be present in writing. These essential elements include the names of the parties involved in the transaction, a description of the real property being sold, and the purchase price agreed upon. An earnest deposit is a common practice in real estate transactions, serving as a good-faith gesture from the buyer to show serious intent to complete the purchase. However, it is not a legal requirement for the contract to be enforceable under the Statute of Frauds. Therefore, it is possible to have a valid and enforceable real estate contract without needing to include an earnest deposit. This distinction explains why the choice stating that an earnest deposit is not necessary is the correct answer in this context. The requirement focuses on more fundamental aspects of the agreement that ensure that the contract is clear, specific, and can be enforced in a court of law.