Contracts
Under NJ law, a minor (under 18) who signs a real estate contract may:
ANever enter into any real estate contract
BEnter into a voidable contract that they can disaffirm upon reaching majority✓ Correct
CSign a fully binding contract with parental consent
DOnly sign contracts for properties under $50,000
Explanation
A minor lacks full legal capacity. A real estate contract signed by a minor is voidable—the minor may affirm or disaffirm (rescind) it upon reaching the age of majority (18 in NJ).
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Key Terms to Know
Purchase Agreement
A legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
Earnest MoneyA deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
Option ContractA contract giving the buyer the right, but not the obligation, to purchase a property at a specified price within a specified time period.
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