Maryland Home Improvement PSI Practice Exam

What legal requirement is necessary when handling property transactions for minors?

1. Minors can sign contracts independently

2. Minors require a guardian’s approval

3. All transactions must be void

4. Minors are prohibited from selling property

The correct answer is: Minors require a guardian’s approval

When handling property transactions for minors, it is essential that a guardian’s approval is obtained. This requirement is grounded in the legal principle that minors, defined as individuals under the age of 18, do not have the legal capacity to enter into binding contracts on their own. Therefore, any significant transactions, such as those involving real estate, necessitate the consent of a guardian or legal representative, ensuring that the interests of the minor are protected. This legal framework is designed to prevent exploitation and to ensure that any agreements made on behalf of the minor are in their best interests. While minors may have certain rights, the involvement of a guardian safeguards against the potential negative repercussions of minors entering into contracts without adequate understanding or maturity. Thus, acquiring a guardian's approval is a necessary legal safeguard in property transactions involving minors.