Contracts
What is 'consideration' in a Nevada real estate contract and is it always money?
AConsideration is always a cash payment in real estate contracts
BConsideration is something of legal value exchanged by each party — it can be money, a promise to act, a promise not to act, or anything else the parties agree has value; real estate contracts typically use money as consideration but forbearance or other acts can also qualify✓ Correct
CConsideration is only required for commercial contracts in Nevada
DConsideration is the appraisal of the property's value before closing
Explanation
Consideration is what each party gives to make the contract enforceable — both parties must provide consideration (bilateral contract). In a purchase agreement, the buyer provides the purchase price; the seller provides the property.
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Key Terms to Know
Option Contract
A contract giving the buyer the right, but not the obligation, to purchase a property at a specified price within a specified time period.
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
AppraisalA professional estimate of a property's market value prepared by a licensed or certified appraiser.
DeedA written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).
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