N.J.S.A. 25:1-5 — Promises or agreements not binding unless in writing.

25:1-5 Promises or agreements not binding unless in writing. 25:1-5. Promises or agreements not binding unless in writing. No action shall be brought upon any of the following agreements or promises, unless the agreement or promise, upon which such action shall be brought or some memorandum or note thereof, shall be in writing, and signed by the party to be charged therewith, or by some other person thereunto by him lawfully authorized: a. (Deleted by amendment, P.L.1995, c.360.) b. (Deleted by amendment, P.L.1995, c.360.) c. An agreement made upon consideration of marriage entered into prior to the effective date of the "Uniform Premarital Agreement Act," N.J.S.37:2-31 et seq.; d. (Deleted by amendment, P.L.1995, c.360.) e. (Deleted by amendment, P.L.1995, c.360.) f. A contract, promise, undertaking or commitment to loan money or to grant, extend or renew credit, in an amount greater than $100,000, not primarily for personal, family or household purposes, made by a person engaged in the business of lending or arranging for the lending of money or extending credit. For the purposes of this subsection, a contract, promise, undertaking or commitment to loan money shall include agreements to lease personal property if the lease is primarily a method of financing the obtaining of the property; g. An agreement by a creditor to forbear from exercising remedies pursuant to a contract, promise, undertaking or commitment which is subject to the provisions of subsection f. of this section; or h. A promise by one party to a non-marital personal relationship to provide support or other consideration for the other party, either during the course of such relationship or after its termination. For the purposes of this subsection, no such written promise is binding unless it was made with the independent advice of counsel for both parties. amended 1991, c.86; 1995, c.360, s.8; 2009, c.311. 25:1-10. Definitions 1. Definitions. As used in this act: "Interest in real estate" means any right, title or estate in real estate, and shall include a lease of real estate, a lien on real estate, a profit, an easement, an interest in a trust in real estate and a share in a cooperative apartment. "Transfer of an interest in real estate" means the sale, gift, creation or extinguishment of an interest in real estate. Source: R.S.25:1-1 through 25:1-4, 25:1-5(d). L.1995,c.360,s.1. 25:1-11. Writing requirement, conveyances of an interest in real estate 2. Writing Requirement, Conveyances of an Interest in Real Estate. a. A transaction intended to transfer an interest in real estate shall not be effective to transfer ownership of the interest unless: (1) a description of the real estate sufficient to identify it, the nature of the interest, the fact of the transfer and the identity of the transferor and the transferee are established in a writing signed by or on behalf of the transferor; or (2) the transferor has placed the transferee in possession of the real estate as a result of the transaction and the transferee has paid all or part of the consideration for the transfer or has reasonably relied on the effectiveness of the transfer to the transferee's detriment. b. A transaction which does not satisfy the requirements of this section shall not be enforceable except as an agreement to transfer an interest in real estate under section 4 of this act. c. This section shall not apply to leases. d. This section shall not apply to the creation of easements by prescription or implication. Source: R.S.25:1-1, 25:1-2. L.1995,c.360,s.2. 25:1-12. Writing requirements, leases 3. Writing Requirements, Leases. A transaction intended to create a lease of real estate for more than three years shall not be enforceable unless: a. the leased premises, the term of the lease and the identity of the lessor and the lessee are established in a writing signed by or on behalf of the party against whom enforcement is sought; or b. the real estate, the term of the lease and the identity of the lessor and the lessee are proved by clear and convincing evidence. Source: R.S.25:1-1, 25:1-5(d). L.1995,c.360,s.3. 25:1-13. Enforceability of agreement regarding real estate 4. Enforceability of Agreements regarding Real Estate. An agreement to transfer an interest in real estate or to hold an interest in real estate for the benefit of another shall not be enforceable unless: a. a description of the real estate sufficient to identify it, the nature of the interest to be transferred, the existence of the agreement, and the identity of the transferor and transferee are established in a writing signed by or on behalf of the party against whom enforcement is sought; or b. a description of the real estate sufficient to identify it, the nature of the interest to be transferred, the existence of the agreement and the identity of the transferor and the transferee are proved by clear and convincing evidence. Source: R.S.25:1-3, 25:1-4, 25:1-5(d). L.1995,c.360,s.4. 25:1-14. Effect on unwritten transactions 5. Effect on Unwritten Transactions. Transactions involving an interest in real estate, and agreements to transfer an interest in real estate or to hold an interest in real estate for the benefit of another, which are not established in a writing, are not effective against bona fide purchasers for valuable consideration without notice or against lienors without notice. L.1995,c.360,s.5. 25:1-15. Liability for the obligation of another 6. Liability for the Obligation of Another. A promise to be liable for the obligation of another person, in order to be enforceable, shall be in a writing signed by the person assuming the liability or by that person's agent. The consideration for the promise need not be stated in the writing. Source: R.S.25:1-5(a), 25:1-5(b), 25:1-8. L.1995,c.360,s.6. 25:1-16. Commissions of real estate broker and business broker, writing required 7. Commissions of Real Estate Broker and Business Broker, Writing Required. a. As used in this section: "Business broker" means a person who negotiates the purchase or sale of a business. "Negotiates" includes identifies, provides information concerning, or procures an introduction to prospective parties, or assists in the negotiation or consummation of the transaction. "Purchase or sale of a business" includes the purchase or sale of good will or of the majority of the voting interest in a corporation, and of a major part of inventory or fixtures not in the ordinary course of the transferor's business. "Real estate broker" means a licensed real estate broker or other person performing the services of a real estate agent or broker. "Transfer or sale" means the transfer of an interest in real estate or the purchase or sale of a business. b. Except as provided in subsection d. of this section, a real estate broker who acts as agent or broker on behalf of a principal for the transfer of an interest in real estate, including lease interests for less than three years, is entitled to a commission only if before or after the transfer the authority of the broker is given or recognized in a writing signed by the principal or the principal's authorized agent, and the writing states either the amount or the rate of commission. For the purposes of this subsection, the interest of a mortgagee or lienor is not an interest in real estate. c. Except as provided in subsection d. of this section, a business broker is entitled to a commission only if before or after the sale of the business, the authority of the broker is expressed or recognized in a writing signed by the seller or buyer or authorized agent, and the writing states either the amount or the rate of commission. d. A broker who acts pursuant to an oral agreement is entitled to a commission only if: (1) within five days after making the oral agreement and before the transfer or sale, the broker serves the principal with a written notice which states that its terms are those of the prior oral agreement including the rate or amount of commission to be paid; and (2) before the principal serves the broker with a written rejection of the oral agreement, the broker either effects the transfer or sale, or, in good faith, enters negotiations with a prospective party who later effects the transfer or sale. e. The notices provided for in this section shall be served either personally, or by registered or certified mail, at the last known address of the person to be served. Source: R.S.25:1-9. L.1995,c.360,s.7.

This is the verbatim text of N.J.S.A. 25:1-5, retrieved from the New Jersey Legislature's public statute corpus. Statutes are amended periodically — for the most current version, check the external source link above. Kyzer is not a law firm and this page is not legal advice.