Contracts
What is 'consideration' in an Idaho real estate contract, and can it be something other than money?
AIt must always be money
BConsideration is anything of legal value exchanged — it can be money, property, services, or even a promise to do or refrain from something✓ Correct
CIt is always the purchase price of the property
DConsideration is required only for listing agreements
Explanation
Consideration is what each party gives in exchange for the other's promise. In real estate, it is typically the purchase price (from buyer) and the property (from seller).
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Key Terms to Know
Listing Agreement
A contract between a property owner and a real estate broker that authorizes the broker to market and sell the property.
Earnest MoneyA deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
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