In real estate transactions, what must be established regarding agreements between parties?

In real estate transactions, it is essential that all agreements between parties be documented in writing. This requirement is based on the Statute of Frauds, which mandates that certain types of agreements—including those involving the sale of real property—must be in writing to be enforceable. Written agreements help to clarify the terms and conditions of the transaction, reduce the likelihood of disputes, and provide a clear legal record of the parties' intentions.

While verbal agreements may be sufficient in some situations for other types of contracts, in real estate, a written document carries legal weight and protects the interests of all parties involved. Additionally, written agreements help ensure that all essential elements, such as price, terms, and obligations, are clearly laid out and agreed upon, minimizing confusion and potential misunderstandings in the future.