Legal Age in Real Estate
Legal Age is the official standard of maturity upon which one is held legally responsible for one’s actions. In many jurisdictions, the legal age is 18, but this can vary depending on the legal area and location. For real estate transactions, if an individual is under the legal age (often referred to as a minor), contracts such as the sale or lease of real estate entered into by this minor are generally voidable. This means that the minor has the option to invalidate the contract.
Examples
- Buying Property: If a 17-year-old signs a contract to purchase a home, the contract is voidable. If the minor later decides not to proceed with the purchase, the seller cannot legally enforce the contract due to the minor’s age.
- Leasing Real Estate: Similarly, if a minor leases an apartment, they have the option within the legal framework to cancel the lease agreement without facing legal consequences for breach of contract.
- Entering Contracts: A 17-year-old individual enters a contract to sell their property but later decides to cancel it. The decision is legally protected under the principle that contracts involving minors are voidable.
Frequently Asked Questions (FAQs)
Q: What is the legal age for entering into real estate transactions in most jurisdictions?
- A: The legal age is typically 18, although this can vary depending on the jurisdiction and certain exceptions may apply.
Q: Can a contract entered into by a minor be enforced?
- A: Generally, no. Contracts made by minors are usually voidable at the discretion of the minor, meaning the minor can choose to honor or void the contract.
Q: How does the legal age affect real estate transactions?
- A: If a person is not of legal age, any contracts they enter into are voidable. This provides protection to minors against unjust or impulsive decisions.
Q: Are there any circumstances under which a minor could be held to a real estate contract?
- A: Exceptions might include court approval or legal emancipation, where a minor is given adult status for legal purposes.
Q: What should a seller do if approached by a minor for a real estate transaction?
- A: The seller should verify the individual’s age and may require adult co-signers or guardians to avoid entering a potentially unenforceable contract.
Related Terms
- Minor: An individual who is under the legal age of majority and thus holds different legal capacities and responsibilities.
- Voidable Contract: A contract that may be legally voided at the discretion of one of the involved parties.
- Age of Majority: The age at which an individual is legally recognized as an adult and is granted full legal responsibilities.
- Legal Capacity: The legal ability or competency to enter into a contract.
Online Resources
- Nolo’s Legal Encyclopedia: Understanding Minor’s Contract Law
- Law Insider: Voidable Contract Definition
- FindLaw: Age of Majority
References
- Merriam-Webster Dictionary. “Legal Age.”
- Nolo. “Minors and Contracts.”
- FindLaw. “Age of Majority.”
Suggested Books for Further Studies
- “Real Estate Law” by Marianne Jennings
- “Understanding Real Estate Law” by Eldon Reiley and Constance Krontz
- “The Law (in Plain English) for Real Estate Investors” by Leonard D. Duboff
Real Estate Basics: Legal Age Fundamentals Quiz
### Are minors able to enter into legally binding real estate contracts?
- [ ] Yes, they can enter any real estate contracts.
- [x] No, their contracts are typically voidable.
- [ ] They can only enter contracts if they have parental authority.
- [ ] Yes, but only if they provide additional documentation.
> **Explanation:** Minors can enter into real estate contracts, but these contracts are generally voidable, at the discretion of the minor.
### What is typically considered the legal age for entering into real estate transactions?
- [x] 18
- [ ] 16
- [ ] 21
- [ ] 17
> **Explanation:** The legal age for entering into binding real estate transactions is typically 18, in most jurisdictions.
### If a 17-year-old signed a contract to lease an apartment, what is true about that contract?
- [ ] It is fully enforceable.
- [x] It is voidable by the minor.
- [ ] It requires parental consent.
- [ ] It must be reviewed by a legal professional.
> **Explanation:** A lease signed by a 17-year-old is voidable by the minor, meaning they can choose to nullify the contract.
### What term is used to refer to an individual under the legal age of majority?
- [x] Minor
- [ ] Adult
- [ ] Youth
- [ ] Adolescent
> **Explanation:** An individual under the legal age of majority is referred to as a "minor."
### Contracts with minors are generally what?
- [ ] Unconditional
- [x] Voidable
- [ ] Enforceable
- [ ] Non-binding
> **Explanation:** Contracts with minors are generally voidable, meaning the minor can void the contract at their discretion.
### Can emancipation affect a minor's ability to enter into a binding real estate contract?
- [x] Yes
- [ ] No
- [ ] Only in specific jurisdictions
- [ ] It does not apply
> **Explanation:** If a minor is legally emancipated, they are often considered legally responsible and can enter into binding contracts.
### What action should a seller take if approached by a minor for a real estate transaction?
- [ ] Proceed as usual
- [x] Verify the minor's age and seek adult consent
- [ ] Reject the minor outright
- [ ] Eliminate all legal disclaimers
> **Explanation:** A seller should verify the individual's age and seek consent from an adult guardian to circumvent entering a potentially voidable contract.
### Why do laws allow contracts with minors to be voidable?
- [x] To protect minors from unjust or impulsive agreements
- [ ] To enable sellers to easily void contracts
- [ ] To enforce strict age-based rules
- [ ] To complicate real estate transactions
> **Explanation:** Laws permit contracts with minors to be voidable to protect minors from making impulsive or unfair decisions that they may not fully understand.
### What might a minor need to become legally responsible for their contracts?
- [x] Emancipation or court approval
- [ ] A valid ID
- [ ] Parental consent only
- [ ] A guardian's signature
> **Explanation:** Emancipation or court approval can make a minor legally responsible for their contracts, thus eliminating the voidability.
### What is another term for the age at which an individual is legally recognized as an adult?
- [x] Age of Majority
- [ ] Legal Threshold
- [ ] Adolescent Age
- [ ] Senior Age
> **Explanation:** The phrase "Age of Majority" is used to represent the age at which a person is legally considered an adult with full legal rights and responsibilities.
