Option consideration - Posted by Matthew Chan

Posted by B.L. Renfrow on May 28, 1999 at 10:46:59:

Feel free to correct me if I’m wrong, but I believe it depends upon your state. I’ve discussed this with two attorneys here in NY and their opinion is that “consideration received” does not have to be cash; it can be whatever you and the other pary agree upon, i.e. your word, $1, whatever. For the record, I’ve taken several options to purchase property and have never paid a dime to the sellers in option consideration. They never asked and I never offered. Of course, these have all been properties with motivated sellers in a slow market. In a hot market, I might not get away with this.


Option consideration - Posted by Matthew Chan

Posted by Matthew Chan on May 27, 1999 at 21:32:39:

In working to place a property under an option contract, I noticed the amount of consideration to be $100.00 in sample contracts. Yet, I see consideration amounts to be some token amount ($1 or $10) in other documents.

I seem to remember a comment that there hass to be some minimum amount for an option to be “legitimate”. Is that correct? Or does that vary from state to state? (I am in GA)


Re: Option consideration - Posted by chris

Posted by chris on May 28, 1999 at 24:55:47:

I remember Bronchick as saying somebody(s) decided that $10.00 wasn’t enough anymore. Hopefully someone else will answer your query better than I. I’ve a related queston above.