Competent Party

What Is a Competent Party?

Under Florida law, a contract is completely void and unenforceable unless all signers are deemed competent parties. A competent party is someone who has the legal capacity and mental clarity to fully understand the terms of the agreement they are entering into and the consequences of their signature.

Requirements for Legal Competency

To be considered a competent party in a real estate transaction, an individual must generally meet two criteria:

1. Legal Age — In Florida, a person must be at least 18 years old to execute a valid real estate contract or deed. A minor lacks legal capacity; if a 16-year-old signs a contract to buy a house, the minor has the power to cancel (void) the contract at any time, but the adult seller does not.
2. Mental Capacity — The individual must be of "sound mind." This means they are not suffering from severe dementia, Alzheimer's, profound mental illness, or extreme intoxication at the exact moment they sign the document.

Incompetency and Real Estate Fraud

Proving that a party was not competent is a common basis for real estate litigation and probate disputes. For example, if a real estate investor pressures an elderly homeowner suffering from advanced dementia into signing a Quitclaim Deed transferring their house for $100, the homeowner's family can sue to have the deed invalidated. They will argue that the elderly homeowner was not a competent party and therefore could not legally transfer the property.

If an owner is permanently deemed incompetent by a court, a judge will appoint a legal guardian who will become the competent party authorized to make real estate decisions on their behalf.

Related Terms

• Contract — Requires competent parties to be legally enforceable
• Guardian — Appointed by the court when a party is legally incompetent
• Undue Influence — Often alleged alongside claims of incompetency in elder fraud cases

Barnes Walker Estate & Property Litigation

Barnes Walker's litigation attorneys aggressively pursue cases of elder fraud and undue influence, seeking to void deeds and contracts signed by vulnerable individuals who lacked the legal competency to understand the transaction. Request a legal inquiry for assistance.

Reviewed by the attorneys at Barnes Walker, Goethe, Shea & Robinson, PLLC