What does consideration refer to in real estate transactions?

In real estate transactions, consideration refers to something of value exchanged between parties involved in a contract. This exchange is what makes the agreement enforceable. Typically, consideration is in the form of money, but it can also include valuables, services, or other assets. When buyers purchase property, they usually provide money as consideration, while the seller transfers ownership of the property.

Legal descriptions, inspection fees, and property taxes do not constitute consideration in the same way. Legal descriptions are necessary for identifying the property but do not represent an exchange of value between the parties. Inspection fees are costs incurred during the buying process and do not form part of the contractual consideration between the buyer and seller. Property taxes are obligations imposed by the government and are not related to the direct exchange of value in a real estate transaction. Therefore, the focus on money or valuables as consideration is key to understanding the fundamental prerequisites for a valid contract in real estate dealings.