Minnesota State Real Estate Practice Test

Which of the following is required for a lease longer than one year?

1. Oral agreement between the parties

2. Written and signed contract

3. Notarized lease document

4. Filing with local authorities

The correct answer is: Written and signed contract

For a lease that extends beyond one year, a written and signed contract is necessary. This requirement is rooted in the Statute of Frauds, which mandates that certain types of contracts, including those involving the sale of real estate or leases longer than one year, must be in writing to be enforceable. Having a written lease provides clarity and serves as a legal document that outlines the terms of the agreement, such as rent amount, duration, responsibilities of both parties, and other essential conditions. This written contract is critical because it protects both the landlord and the tenant by providing a reference that can help resolve disputes should they arise. In contrast, an oral agreement, while it may be common in short-term leases, does not satisfy the legal requirements for longer leases and may lead to complications in enforceability. A notarized document or a lease filed with local authorities may be beneficial or required for other legal reasons, but they are not standard requirements for a lease over one year.