Contracts
What is 'consideration' in a real estate contract?
AThe agent's commission
BSomething of value exchanged by both parties that makes the contract binding✓ Correct
CThe buyer's down payment only
DThe seller's willingness to negotiate
Explanation
Consideration is something of value (money, goods, services, or a promise) given by each party to the contract. In a real estate sale, the buyer's consideration is the purchase price and the seller's consideration is the promise to convey title. Without consideration, a contract is generally unenforceable.
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