Contracts
In Kentucky, consideration in a real estate contract may consist of:
AOnly money
BAnything of value, including money, other property, or a promise to act✓ Correct
COnly a promise not to sue
DOnly the purchase price of the property
Explanation
Consideration can be anything of legally recognized value — money, other property, services, or a promise to act (or refrain from acting). It need not be equal in value for a contract to be valid.
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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.
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.
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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