Contracts
In South Dakota, the 'consideration' in a real estate purchase contract typically consists of:
AOnly the purchase price paid by the buyer
BThe purchase price (money) from the buyer and the promise to convey the property from the seller✓ Correct
COnly the earnest money deposit
DThe real estate agent's commission
Explanation
Consideration in a bilateral contract must flow both ways. In a real estate purchase contract, the buyer's consideration is the purchase price (money), and the seller's consideration is the promise to convey title to the property.
Related South Dakota Contracts Questions
- Mutual rescission of a South Dakota real estate contract means:
- In South Dakota, a 'merger clause' (also called an 'integration clause') in a real estate contract means:
- In South Dakota, what is the legal effect of a 'contingency' in a real estate purchase contract?
- In South Dakota, a 'land contract' (contract for deed) is a financing arrangement where:
- A South Dakota purchase agreement requires the seller to provide clean title at closing. If the title search reveals an unresolved mechanic's lien, the seller must:
- In South Dakota, if a buyer backs out of a contract without a valid contingency, the seller may retain the earnest money as:
- In South Dakota, parol evidence rule means:
- An acceleration clause in a South Dakota promissory note allows the lender to:
Practice More South Dakota Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free South Dakota Quiz →