An oral agreement between a property owner and a prospective tenant can establish what?

An oral agreement between a property owner and a prospective tenant can establish a valid tenancy at will. This type of arrangement allows either party to terminate the tenancy with proper notice, typically as defined by state law. In North Carolina, while most lease agreements are ideally in writing for the sake of clarity and legal enforceability, an oral agreement can still create a tenancy at will, where the tenant has the right to occupy the property without any specified duration, allowing for flexibility.

A tenancy at will does not provide the same guarantees as a lease with a specified duration or a written lease agreement. In contrast to a written tenancy agreement or a lease with a defined term, the oral agreement does not bind the parties to the same level of specificity regarding duration and conditions. Similarly, a lease option, which gives a tenant the right but not the obligation to purchase the property at a later date, typically requires a more formalized agreement than an informal oral understanding.