Definition
Something of value exchanged between parties that makes a contract binding.
Example
The earnest money deposit and the mutual promises in the purchase agreement constituted consideration.
Related terms
- Abstract of Title
- Adverse Possession
- Affidavit of Title
- Certificate of Occupancy
- Chain of Title
- Cloud on Title
Frequently asked questions
What does Consideration mean in real estate?
Something of value exchanged between parties that makes a contract binding.
How is Consideration used in practice?
The earnest money deposit and the mutual promises in the purchase agreement constituted consideration.
This definition is provided for educational purposes. Legal and tax terminology can carry jurisdiction-specific meaning — confirm with a licensed professional before relying on it in a transaction.