Michael and Lisa enter into a contract for the sale of Michael's house in Albany for $350,000. The contract includes all essential elements but Lisa is only 17 years old. Under New York law, what is the legal status of this contract?
Correct Answer
D) The contract is voidable at Lisa's option until she reaches majority or shortly thereafter
Under New York law, contracts entered into by minors (under 18) are voidable at the minor's election. Lisa can choose to void the contract before reaching majority or within a reasonable time after turning 18, but Michael cannot void it based on Lisa's minority status.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Earnest money is a deposit made by the buyer at the time of the offer or shortly after to demonstrate good faith and serious intent to purchase the property. It is also called a good faith deposit.
Equitable title is the buyer's interest in a property after a purchase contract is signed but before closing, giving the buyer the right to acquire legal title in the future. The seller retains legal title until the deed is delivered at closing.
A financing contingency makes the purchase contract conditional upon the buyer obtaining mortgage approval within a specified time period. If the buyer cannot secure financing, they can cancel the contract and receive their earnest money back.
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A real estate agent is explaining the differences between cooperative and condominium ownership to a client. All of the following statements about New York cooperatives are accurate EXCEPT:
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Sarah, a licensed real estate salesperson in New York, is helping her client prepare a purchase offer for a residential property. Under New York law, which element is absolutely essential for a valid real estate purchase contract?
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Robert agrees to sell his Manhattan condominium to Jennifer for $800,000. The written contract is signed by both parties but contains an error in the legal description, listing the wrong unit number. Under New York law, what is the most likely outcome?