Simply stated, the statute of frauds declares that agreements for the sale of any interest in real property or for the lease of realty for a period longer than one year are invalid unless memorialized in a writing. It is important to note that an agreement deemed to be invalid and in violation of the statute of frauds is likely not illegal and can still be performed if not challenged. Florida’s statute of frauds is set forth in Florida Statute 725.01 and provides in pertinent part:
1. Change Jobs
A lender uses your income to prove that you can pay your loan. Changing jobs may result in your loan being denied particularly if you change fields or earn less money. Your employment will most likely be verified at the beginning of the loan process and again just before closing.
2. Move Funds Around
Your lender will verify your cash to close and monthly payment reserves prior to finalizing your loan. Lenders do not like to see large cash deposits or unexplained funds. Once funds have been accounted for, any changes could result in a delay in your loan approval. Like employment, these accounts may be verified again prior to closing.