Definition
In the context of real estate, an adult is someone who has reached the legal age of majority, which varies between 18 or 21 years depending on the state jurisdiction. This status legally qualifies an individual to engage in contracts, including the purchase, sale, lease, or financing of real estate.
Real Estate Context
Being an adult is significant in real estate transactions because individuals who have not reached the age of majority (minors) generally lack the legal capacity to enter into enforceable contracts. Agreements entered into by minors can often be voided by them before they reach adulthood.
Examples
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Scenario One: Buying Property
- Alice is 20 years old in a state where the age of majority is 18. She successfully signs a contract to purchase a condo. Her status as an adult makes this contract legally binding.
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Scenario Two: Contract Voidability
- Bob, aged 17, signs a lease agreement for an apartment. Because Bob is a minor in a state where the age of majority is 18, he has the right to void this lease contract before he turns 18.
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Scenario Three: Co-Signing
- Carla, aged 19, wants to take a mortgage. Since she’s an adult in her state, she can independently sign the mortgage contract without needing a co-signer.
Frequently Asked Questions
What is the age of majority in most states?
- Answer: The age of majority is 18 in most states, but some states set the age of majority at 21.
Can a minor ever enter into legally binding real estate contracts?
- Answer: Generally, contracts entered into by minors are not legally binding and can be voided by the minor; however, there can be exceptions in certain circumstances, such as contracts for essential items like housing.
At what age can someone sell real estate independently?
- Answer: An individual can independently sell real estate upon reaching the age of majority, which is either 18 or 21, depending on the state.
Are there any protections for minors in real estate transactions?
- Answer: Yes, minors are generally protected by the law, which allows them to void contracts they enter into before reaching the age of majority to prevent them from being taken advantage of.
What happens if a minor fails to void a contract before reaching adulthood?
- Answer: If a minor does not void a contract upon reaching the age of majority, the contract may become fully enforceable as if it had been entered into by an adult.
Related Terms
Minor
- Definition: An individual who has not yet reached the age of majority and generally cannot enter into legally binding contracts.
Legal Capacity
- Definition: The ability to understand and appreciate the legal consequences of one’s actions and being legally competent to enter contracts.
Age of Majority
- Definition: The age at which a person is legally recognized as an adult and able to manage their own affairs.
Voidable Contract
- Definition: A contract that can be legally voided at the option of one of the parties, typically due to a lack of capacity, such as being a minor.
Online Resources
- National Association of Realtors (NAR)
- HG.org Legal Resources
- American Bar Association (ABA)
References
- National Association of Realtors (NAR)
- Cornell Law School - Legal Information Institute
- HG.org Legal Resources
Suggested Books for Further Studies
- “Real Estate Law” by Marianne M. Jennings
- Offers a comprehensive understanding of the legal landscape in real estate.
- “Practical Real Estate Law” by Daniel F. Hinkel
- Provides practical insights and details regarding real estate law.
- “Law of Real Estate Brokerage” by David G. Epstein
- Focuses on the legal aspects important for real estate brokers and agents.
Real Estate Basics: Adult Fundamentals Quiz
### Define an adult within the context of real estate.
- [x] Individual who has attained the age of majority.
- [ ] Anyone over the age of 16.
- [ ] Any tenant in housing.
- [ ] Real estate professionals only.
> **Explanation:** In the context of real estate, an adult is defined as an individual who has reached the age of majority, which confers the legal capacity to engage in contracts and transactions.
### At what age does one typically become an adult in most states?
- [x] 18 years old
- [ ] 17 years old
- [ ] 16 years old
- [ ] 25 years old
> **Explanation:** Most states set the age of majority at 18, at which point an individual is legally recognized as an adult.
### Why is being an adult important in real estate transactions?
- [x] To have the legal capacity to enter binding contracts.
- [ ] To sell houses quicker than minors.
- [ ] Minors can't visit open houses.
- [ ] To receive tax benefits.
> **Explanation:** Being an adult is important in real estate transactions because it grants legal capacity, ensuring the contracts are enforceable and binding.
### What is a minor in legal terms?
- [x] An individual who has not reached the age of majority.
- [ ] An individual under the age of 16 years.
- [ ] Any individual not owning real estate.
- [ ] A new real estate agent.
> **Explanation:** A minor is any individual who has not reached the age of majority and generally lacks the legal capacity to enter into binding contracts.
### Who can void a contract made by a minor?
- [ ] The major involved.
- [x] The minor.
- [ ] Any residing adult.
- [ ] The court automatically.
> **Explanation:** A contract entered into by a minor can generally be voided by the minor themselves, within a legally specified timeframe, before they reach adulthood.
### Can a minor independently sell real estate?
- [ ] Yes, always.
- [x] No, only once they reach the age of majority or have guardian consent.
- [ ] Yes, if the property is under a certain value.
- [ ] No, only adults certified by a state.
> **Explanation:** A minor cannot independently sell real estate until they reach the age of majority or have guardian consent; most contracts they enter could be voidable otherwise.
### Are contracts made with minors usually binding?
- [ ] Always.
- [x] Usually not, they can be voided by minors.
- [ ] Yes, in all cases.
- [ ] Only if notarized.
> **Explanation:** Contracts with minors are usually not binding as they can frequently be voided by the minor before they reach the age of majority.
### What protects minors from being taken advantage of in contracts?
- [x] Laws allowing them to void contracts entered into before reaching age of majority.
- [ ] Special minors’ contracts.
- [ ] Parent or guardian oversight.
- [ ] Real estate agents.
> **Explanation:** Laws protect minors, giving them the ability to void contracts they enter before reaching the age of majority, protecting them from potential exploitation.
### At what age can contracts remain binding without being voided?
- [ ] 16
- [ ] 17
- [x] Once the individual reaches the age of majority.
- [ ] 20
> **Explanation:** Once an individual reaches the age of majority, which can be 18 or 21 depending on the state, contracts are generally binding without the option of being voided.
### Who typically oversees real estate legalities?
- [x] Lawyers, brokers, or agents.
- [ ] Only the buyers and sellers.
- [ ] Government officials.
- [ ] General contractors.
> **Explanation:** Lawyers, brokers, or agents typically oversee the legalities in real estate transactions to ensure compliance with legal standards and protect involved parties' rights.
