Tom and Janet are married and purchasing a home in Fargo, North Dakota as their primary residence. Tom signs the purchase agreement, but Janet does not. The seller accepts. Later, the seller discovers that Janet is also on the title to their current home. Under North Dakota law, which statement is most accurate regarding the purchase agreement?

Correct Answer

A) The purchase agreement is enforceable against Tom, and Janet's signature is not required because North Dakota is a separate property state

North Dakota is NOT a community property state — it follows common law (separate property) principles. Under this system, each spouse has the right to independently own and contract for property in their own name. Tom can enter into an enforceable purchase agreement without Janet's signature. Janet's signature is not legally required for the purchase agreement itself. Note that if they intend to take title jointly, both should sign the deed at closing, but the purchase contract signed by Tom alone is enforceable.