California Real Estate Practice Exam

A real estate contract is voidable if the purchaser:

1. is under the age of 18

2. is not a U.S. citizen

3. needs a home loan to finance the purchase

4. is a senior citizen

The correct answer is: is under the age of 18

A real estate contract is considered voidable when one party has the option to affirm or reject the contract based on certain circumstances. In this case, if the purchaser is under the age of 18, they are classified as a minor under California law. Contracts entered into by minors are typically voidable at the discretion of the minor, as the law recognizes that individuals younger than 18 may not have the legal capacity to fully understand the implications or obligations of a contract. This reflects the legal principle designed to protect minors from entering into agreements that they may not yet fully comprehend. Therefore, if a minor decides to enter into a real estate contract, they have the right to void that contract before they reach the age of 18 or shortly thereafter, providing them with a safeguard against any potential exploitation. The other options do not make a contract voidable in the same manner. For instance, being a non-U.S. citizen does not affect a person's ability to enter into a real estate contract in California. Similarly, needing a home loan or being a senior citizen does not inherently make a contract voidable. Thus, the age of the purchaser as a determinant of contractual capacity is the primary reason for the voidable nature of the contract in this scenario.