Contracts
In a Massachusetts real estate transaction, 'consideration' most commonly takes the form of:
ALove and affection between family members
BMoney (purchase price) paid by the buyer✓ Correct
CA promise to make improvements
DAn exchange of properties
Explanation
In most Massachusetts real estate transactions, consideration is the purchase price (money) paid by the buyer. Consideration is legally required for a contract to be enforceable.
People Also Study
Related Massachusetts Questions
- A Massachusetts buyer offers $5,000 in earnest money on a $415,000 home. What percentage of the purchase price is the earnest money?Real Estate Math
- Which of the following is NOT a required element of a valid real estate contract in Massachusetts?Contracts
- Under Massachusetts practice, the Purchase and Sale Agreement (P&S) is most commonly prepared by:Contracts
- Under Massachusetts contract law, which element is NOT required for a valid real estate contract?Contracts
- In Massachusetts, which form of co-ownership is available ONLY to legally married spouses?Property Ownership
- A Massachusetts buyer's agent negotiates a purchase price $30,000 below asking price. The agent's commission is a percentage of the sale price. The agent has a possible conflict of interest because:Agency
- A Massachusetts lender requires a property appraisal for a purchase loan. The appraisal comes in at $490,000 but the purchase price is $520,000. The lender will typically base the loan on:Finance
- A Massachusetts seller 'carries back' a portion of the purchase price by agreeing to accept payments from the buyer over time. This is called:Finance
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.
Study This Topic
Practice More Massachusetts Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Massachusetts Quiz →