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Is a mortgage valid if entered into under guardianship?

Is a mortgage valid if entered into under guardianship?

Q: What rights do you lose under guardianship?

Under guardianship, individuals may lose certain rights, such as the ability to make personal decisions, manage finances, or enter into contracts. The guardian is responsible for making decisions in the ward's best interest, which can limit the ward's autonomy. The specific rights lost can vary based on the court's order.

Q: Is there a difference between guardian and legal guardian?

Yes, there is a difference. A guardian is generally someone appointed to care for another person, often due to incapacity. A legal guardian, however, has specific legal authority granted by a court to make decisions on behalf of another person, particularly in matters of health, finance, and welfare.

Q: What is the difference between a guardian and a legal guardian?

The terms 'guardian' and 'legal guardian' are often used interchangeably, but a legal guardian has formal authority granted by a court. This authority allows them to make significant decisions for the ward, while a guardian may not have the same legal backing unless appointed through a court process.

Q: Does a guardian require permission of the court to sell real property?

Yes, a guardian generally requires court permission to sell real property owned by the ward. This requirement is to ensure that the sale is in the best interest of the ward and that their rights are protected. The guardian must petition the court and provide justification for the sale.

Full question:

Is a mortgage entered into by a person under a court appointed guardianship valid and can the guardian be made to accept the mortgage by the mortgagor?

Category: Contracts
Subcategory: Recission
Date: 04/07/2025
State: Maryland

Answer:

The validity of a mortgage entered into by a person under court-appointed guardianship can depend on specific circumstances. If the mortgagor (the person borrowing money for the mortgage) was not competent to enter into that agreement, the court may intervene, especially if the guardian was unaware of the loan.

Generally, to create a legal contract, a person must be legally competent. This means they should be over eighteen years old and of sound mind. Minors (under eighteen) can void contracts, except for necessities like food or shelter. Similarly, individuals deemed of unsound mind due to mental illness or disability may also rescind contracts if they did not understand their actions or the consequences.

In cases where a person lacks sound mind, they typically cannot enter into contracts, as they do not have the capacity to understand the agreement. This includes individuals who are mentally impaired or under the influence of drugs or alcohol to the extent that they cannot grasp the significance of their actions.

This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.

FAQs

Who is the owner of the property in a guardian's deed?

In a guardian's deed, the property is typically owned by the ward, the person under guardianship. The guardian acts on behalf of the ward to manage their affairs, including real estate transactions. However, the guardian must have court approval to sell or transfer property, ensuring that the ward's best interests are protected.

What rights do you lose under guardianship?

What makes a parent a legal guardian?

A parent is typically considered a legal guardian of their child by virtue of their parental rights. This status gives them the authority to make decisions regarding the child's welfare, education, and healthcare. Legal guardianship can also be established through court orders if a parent is unable to fulfill their responsibilities.

Is there a difference between guardian and legal guardian?

What is the difference between a guardian and a legal guardian?

Does a guardian require permission of the court to sell real property?

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