### What does it mean for a buyer to be legally competent in a real estate transaction? - [x] To be legally fit to enter the contract - [ ] To have an excellent credit score - [ ] To be financially wealthy - [ ] To own another property already > **Explanation:** Competent means the buyer is legally fit in the eyes of the law and local government to enter into a real estate contract. This typically includes being of legal age and having the legal ability to enter into such a contract. ### Who can enter into a real estate contract on behalf of a legally incompetent buyer? - [ ] A neighbor - [x] A legal guardian - [ ] A real estate agent - [ ] The seller > **Explanation:** If a buyer is deemed legally incompetent, a legal guardian may enter into the real estate contract on their behalf. This guardian also becomes responsible for the contract terms and obligations, including payment defaults, if the original buyer fails to uphold them. ### What happens if a buyer is ruled legally incompetent to enter into a real estate contract? - [ ] The contract is automatically approved - [x] The buyer may seek out a legal guardian to enter the contract on their behalf - [ ] The contract terms are revised - [ ] The buyer's assets are confiscated by the court > **Explanation:** If a court decides that a buyer is legally incompetent, the person may seek out a legal guardian to enter into the contract on their behalf. The legal guardian ensures the contract terms are met and is responsible if the original buyer defaults. ### Which of the following is NOT a requirement for a buyer to be considered legally competent? - [ ] Being of legal age in the jurisdiction - [ ] Having the legal ability to enter the contract - [ ] Being considered legally fit by the local government - [x] Owning a property in another location > **Explanation:** For a buyer to be legally competent, they must be of legal age, have the legal capacity to enter a contract, and be considered legally fit by the local government. Owning another property is not a requirement for legal competence. ### At what point can a buyer who is deemed incompetent purchase real estate? - [ ] When they turn 18 - [ ] When they improve their credit score - [x] When a legal guardian enters the contract on their behalf - [ ] When they obtain a job > **Explanation:** A buyer who is deemed legally incompetent can purchase real estate when a legal guardian enters into the contract on their behalf. The guardian is responsible for ensuring the terms are fulfilled. ### If a minor is declared legally incompetent, who becomes responsible for the real estate contract? - [ ] The government - [ ] The seller - [x] The minor's legal guardian - [ ] The minor's parents > **Explanation:** If a minor is declared legally incompetent, the legal guardian who enters into the contract on their behalf becomes responsible for the real estate contract, including any defaulted payments. ### What can a court do if it determines a person is not legally competent to sign a real estate contract? - [ ] Automatically approve the contract - [ ] Void the purchase - [ ] Assign a legal guardian to handle transactions - [ ] Penalize the buyer financially > **Explanation:** If a court determines that a person is not legally competent to sign a real estate contract, a legal guardian may be assigned to handle the transaction on behalf of the incompetent buyer. ### In what situation might a buyer need a legal guardian to enter into a real estate contract? - [x] If the buyer is a minor - [ ] If the buyer is a veteran - [ ] If the buyer is married - [ ] If the buyer is new to the city > **Explanation:** A buyer might need a legal guardian to enter into a real estate contract if the buyer is a minor, as they typically are not considered legally competent to enter into binding contracts. ### Why is the legal competence of a buyer critical in real estate transactions? - [x] To ensure the contract is legally binding and enforceable - [ ] To ensure the seller profits - [ ] To secure the lowest interest rates on the mortgage - [ ] To guarantee quick closing of the deal > **Explanation:** Legal competence is critical in real estate transactions to ensure the contract is legally binding and enforceable. It helps protect both the buyer's and seller's rights and obligations within the transaction. ### Can a real estate transaction proceed if a buyer is found legally incompetent without a legal guardian? - [ ] Yes, with court approval - [ ] Yes, if both parties agree - [x] No, it cannot proceed - [ ] Yes, if overseen by a third-party mediator > **Explanation:** A real estate transaction cannot proceed if a buyer is found legally incompetent unless a legal guardian is involved. The legal guardian can enter the contract on the buyer's behalf ensuring the terms are met.