Contracts
What is 'consideration' in a Kansas real estate contract and what forms can it take?
AOnly money qualifies as consideration
BSomething of value exchanged by each party (money, goods, services, a promise to act or refrain from acting) that is required to make a contract legally binding✓ Correct
CThe property being sold is itself the consideration
DConsideration must exceed $1,000 to be valid
Explanation
Consideration is the bargained-for exchange that supports a contract. In real estate, the buyer's purchase price and the seller's promise to convey title are mutual consideration.
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Key Terms to Know
Earnest Money
A deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
Option ContractA contract giving the buyer the right, but not the obligation, to purchase a property at a specified price within a specified time period.
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