What is required to legally form a contract in Colorado in terms of writing and signatures?

• A. Under the statute of frauds, real estate contracts must be in writing and signed by the parties to be enforceable; include essential terms.
• B. Oral agreements are enforceable in Colorado real estate transactions.
• C. Contracts may be formed by email alone without signatures.
• D. A handshake suffices for enforceability with witnesses.

Answer: (B)

Colorado requires real estate contracts to be in writing and signed to be enforceable. This rule, from the Statute of Frauds, protects against disputes by ensuring there is a clear, tangible agreement someone can reference. The writing should include essential terms such as who is involved, a description of the property, the price or financial terms, and the key conditions of performance. Without a written agreement with signatures, a real estate deal cannot be enforced, even if there was a prior oral agreement. Therefore, an oral agreement isn’t enforceable for real estate; an email without a signature isn’t enough; and a handshake with witnesses does not substitute for a signed, written contract. (Electronic signatures can satisfy the signing requirement if done properly under applicable law.)