Question

A licensed real estate broker is successful in securing a buyer for a property who is ready, willing, and able to buy. The offer is accepted and signed by both parties and escrow is opened. During the escrow period, the title company discovers that the seller is a single minor under the age of 18 and notifies the broker and the escrow holder. Under these circumstances the contract is:

Answer 1

The contract is not legally binding because the seller is a single minor under the age of 18 and lacks the legal capacity to enter into a contract.

Step-by-step explanation:

The contract between the licensed real estate broker and the single minor seller is not legally binding because minors are generally not able to enter into contracts. Since the seller is under 18, they lack the legal capacity to enter into a contract. Therefore, the contract would be considered voidable and can be canceled by the minor.

One of the fundamental principles of contract law is that a contract requires the parties to be of legal age and have the mental capacity to understand the terms and consequences of the contract. In this case, since the seller is a minor, they lack the legal capacity to enter into the contract.

It is important for real estate brokers to verify the legal capacity of the parties involved in a transaction, especially when dealing with minors. They should ensure that all parties are of legal age and capable of entering into a contract to avoid such situations.