What standard of evidence is required to uphold oral agreements in real estate transactions?

In real estate transactions, oral agreements can be challenging to enforce due to the Statute of Frauds, which generally requires certain contracts to be in writing to be legally binding. However, when oral agreements are considered, the standard of evidence needed to uphold them typically falls under a clear and convincing evidence standard. This standard is higher than the preponderance of evidence, which is often used in civil cases, but lower than beyond a reasonable doubt, which is standard in criminal cases.

Clear and convincing evidence requires that the evidence presented be highly and substantially more likely to be true than not, meaning there is a greater than 50% probability that the claims made in the oral agreement are accurate, and that they can be proven with a high degree of certainty. This standard reflects the fact that oral agreements in real estate transactions can lead to significant disputes due to their lack of formal documentation.

Understanding these nuances in standards of evidence is crucial for parties involved in real estate transactions, especially when navigating issues surrounding enforceability of oral contracts.