Contracts
What is 'consideration' in a real estate contract?
AThe agent's commission
BSomething of value exchanged between parties✓ Correct
CThe time allowed to back out of a deal
DThe property inspection period
Explanation
Consideration is something of value given by each party to a contract. In a real estate sale, the consideration is typically the purchase price from the buyer and the property title from the seller.
Related California Contracts Questions
- The doctrine of 'caveat emptor' (let the buyer beware) has been largely replaced in California by:
- What is the parol evidence rule?
- A California residential purchase agreement includes a 17-day inspection contingency. On day 18, the buyer has not removed the contingency or canceled. What is the correct procedure for the seller?
- What is an 'addendum' in a real estate contract?
- A contract signed by a minor (under 18) in California is generally:
- What is a 'bilateral contract' as it applies to a real estate purchase agreement?
- Under California's parol evidence rule, when may extrinsic (outside) evidence be introduced to change the terms of a written contract?
- What does it mean for a contract to be 'void' versus 'voidable'?
Practice More California Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free California Quiz →