Contracts

Which of the following would make a real estate contract VOID (not merely voidable) in North Carolina?

Q: Which of the following would make a real estate contract VOID (not merely voidable) in North Carolina?

A contract with an illegal subject matter (e.g., a contract to sell a property for illegal purposes) is void ab initio — it never had legal effect. Contracts with minors, fraud, or intoxication are typically voidable at the option of the affected party.

AOne party was a minor at signing

BThe contract was obtained by fraud

CThe subject matter of the contract is illegal✓ Correct

DOne party was intoxicated at signing

Explanation

A contract with an illegal subject matter (e.g.

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Key Terms to Know

Option Contract

A contract giving the buyer the right, but not the obligation, to purchase a property at a specified price within a specified time period.

Listing Agreement

A contract between a property owner and a real estate broker that authorizes the broker to market and sell the property.

Earnest Money

A deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.

Contingency

A condition in a purchase contract that must be satisfied before the sale can proceed to closing.

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