Jim Kennedy, No $10 states, yet. - Posted by Brent_IL

import · January 24, 2002, 11:05am

Posted by Jim Kennedy - Houston, TX on January 25, 2002 at 06:26:28:

.

import · January 24, 2002, 11:05am

Posted by Brent_IL on January 24, 2002 at 12:05:26:

So far I’ve spent about 7 hours in the law library searching for the states that have a minimum consideration of $10 cash for real estate contracts, but I haven’t found the right reference.

Yet.

I have to wade through the state-by-state changes in the UCC and the statutes. I’ll try again because I know I didn’t dream this, but right now Mathew Bender and I are estranged.

If anyone else can jump in with some state input I would appreciate it.

Brent

import · January 24, 2002, 10:55pm

You Won’t Find It… - Posted by J.P. Vaughan

Posted by J.P. Vaughan on January 24, 2002 at 23:55:32:

Read John Beck’s article, “Legal Consideration vs Earnest Money.”

http://www.creonline.com/art-111.htm

As I stated in my editor’s note, this law is uniform
among the states. I would be surprised to see a statute
to the contrary. Any statute to the contrary would be
thwarting basic contract law. Why would a legislature do
that? It’s worked very well for hundreds of years.

import · January 24, 2002, 10:07pm

I’d bet it is case law - Posted by JD

Posted by JD on January 24, 2002 at 23:07:22:

Can’t say that I have seen the case, or that this has ever been a subject that I have ever paid much attention to. But it is my recollection that $10 rule does not originate from Statue, but from case law.

import · January 24, 2002, 8:46pm

WOW!! What Persistence!! - Posted by Jim Kennedy - Houston, TX

Posted by Jim Kennedy - Houston, TX on January 24, 2002 at 21:46:52:

Brent,

WOW!! 7 Hours. You’ve got a lot more patience and persistence than I have. I’d have given up after the first hour. To me, that stuff is soooo boring. While I’d really like to know the exact statute, I certainly don’t expect you to spend all your time doing legal research. Particularly since the only compensation you’re gonna receive is the satisfaction of a job well done, my grateful words of appreciation, and perhaps a beer or three on me at the convention. Maybe some of the legal experts who visit here (Bronchick, Hyre, or others) can jump in and point us in the right direction.

Best of Success!!

Jim Kennedy,
Houston, TX

import · January 24, 2002, 2:23pm

Re: Jim Kennedy, No $10 states, yet. - Posted by Dave T

Posted by Dave T on January 24, 2002 at 15:23:46:

I sold an OH property last year. The deed (prepared by title company) stated the sale price as “$10 and other valuable consideration”.

import · January 24, 2002, 12:49pm

The original statement - Posted by Brent_IL

Posted by Brent_IL on January 24, 2002 at 13:49:21:

Once when I was taking a course on contract law the subject of the mutual exchange of promises as consideration came up. The attorney who was the instructor said that in some states a real estate contract has to have a minimum of $10 cash exchange hands because the state defined “value” that way in their statutes.

That’s all I know.

In a short reply to a post about consideration I suggested that the sender check his state statutes. Jim asked what states I was referring to, but I didn’t know the answer. Thus, the research game was afoot.

import · January 24, 2002, 12:04pm

Re: Jim Kennedy, No $10 states, yet. - Posted by GL

Posted by GL on January 24, 2002 at 13:04:32:

Here in Ontario I see many documents at the registry office that say “$2 and other good and valuable considerations”. I have also seen $1 in some cases.

I have also seen a transfer from mother to son for “natural love and affection”, no money mentioned.

I’m not sure if you are saying no state demands more than $10 or no state demands less?

import · January 24, 2002, 11:59am

Re: Jim Kennedy, No $10 states, yet. - Posted by ccreia-nc

Posted by ccreia-nc on January 24, 2002 at 12:59:15:

In NC you have to have $10.00 consideration for a contract to be enforceable in court. If you are buying and there is no monies changing hands at contract signing then you couldnt sue for specific performance.

CCREIA
HMC
www.ccreia.org

import · January 24, 2002, 11:54am

Re: Jim Kennedy, No $10 states, yet. - Posted by Rob FL

Posted by Rob FL on January 24, 2002 at 12:54:45:

I’m not an attorney, but why does consideration have to take on any form of cash. I’ve seen deals when the consideration was a trade of land for a Jaguar car. I’ve also done “subject to” transactions where the seller got zippo money. The only consideration was my promise to make the payments from there on out.

I bought some land last year where I traded the seller some delinquent tax certificates for his lots. No money ever changed hands.

import · January 25, 2002, 9:00am

Re: I’d bet it is case law - Posted by JHyre in Ohio

Posted by JHyre in Ohio on January 25, 2002 at 10:00:14:

It’s that, or just “custom”. I’d be quite surprised to see it in a statute, particularly a UCC-based one.

John Hyre

import · January 24, 2002, 7:12pm

Thanks! Can you point us to the cite? - Posted by Jim Kennedy - Houston, TX

Posted by Jim Kennedy - Houston, TX on January 24, 2002 at 20:12:53:

Herb,

Thanks for the information. That’s just what Brent and I were looking for. Can you point us to the NC statute that specifies this?

Thanks in advance.

Best of Success!!

Jim Kennedy,
Houston, TX

import · January 24, 2002, 12:50pm

Thank you, thank you, thank you! NTXT - Posted by Brent_IL

Posted by Brent_IL on January 24, 2002 at 13:50:56:

nt

import · January 25, 2002, 5:14am

Re: Thanks! Can you point us to the cite? - Posted by ccreia

Posted by ccreia on January 25, 2002 at 06:14:43:

My atty showed me one time. Ill call him it might take him a week or to get back with me.

HMC