Ace the Arizona Real Estate Exam 2026 – Unlock Your Property Dreams!

An oral lease agreement for three years is considered unenforceable under Arizona law due to the Statute of Frauds. This statute requires that leases for a term longer than one year be in writing to be legally binding. This ensures clarity and protection for both parties involved, as contracts that are put into writing can be more easily referenced and enforced in the event of a dispute.

Since the agreement in this scenario is oral and exceeds the one-year threshold, it does not meet the legal requirements to be enforceable. While the parties may have come to a mutual understanding, without a written lease, either party may face difficulties if issues arise concerning the terms of the tenancy. Therefore, the lease agreement would not hold up in court, making the oral lease unenforceable.

Under this context, while some might argue that it could be typical for informal arrangements between landlords and tenants, the legal implications clearly dictate that such agreements for three years cannot be upheld unless documented in writing.