Posted by Mr. Ed (ATL) on March 14, 2000 at 17:42:44:
Leon-I’m no expert, but all deals I’ve been involved with, and all titles I’ve ever examined require consideration, and it can be nominal amount, i.e. $10.00. For instance, when a grantor (seller) gives a warranty deed to a grantee (buyer), for there to be mutuality of contract (fancy legal term for give and take), the grantee has to give something of value to grantor, albeit something nominal. This must be stated on warranty deed, even if seller is taking back a mortgage, (security deed on separate document).
Long story short, I do not believe there is a contractual situation that cannot involve a nominal amount of consideration. If anyone else knows an exception to this, I’d like to know.
I’m using Bill Bronchicks sandwich lease option forms. I’m using a conglomerate of forms for my actual lease with option though. My question is…in the Bill of Sale which is used with the performance Deed of Trust it calls for a sum of consideration (I’ve inserted $10.00) and the Quit Claim Deed which will also go into escrow calls for a sum (I’ve inserted $10.00). Is it going to be necessary for me to give the seller a $10.00 check and the seller give me one? I know this is a petty detail but I’m just one of those people I guess.
While I’m here, some of the paperwork requires notarization. Do you all run your sellers down to the local notary or what?