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.
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)
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.