When someone is about to sign a deed, have you ever had them ask what this line means?
“…for and in consideration of the sum of $10.00 (ten) and other valuable considerations…”
In real estate, you see it over and over … but for a customer who has not seen it before, it can be confusing.
The best way to describe it to them is that it is simply a legalism. It even has a cute name; a peppercorn.
In legal terms, the $10 is a “peppercorn consideration.” It is an actual common law term to make it clear that an actual enforceable transfer is taking place and not a promise.
To make a contract enforceable it needs a little “real” value as consideration; hence, “in consideration of ten dollars and other valuable consideration….” This is considered the “form” of the exchange of valuable consideration. The actual value is immaterial, it could say ten dollars, it could be one dollar… one famous judge has said that it can be something as small as a “peppercorn”… which is why this is often called “peppercorn consideration.”
If they really want to get in the weeds they can google the Real Estate Closing Deskbook: A Lawyer’s Reference Guide & State-by-state Summary by the American Bar Association, page 65.
Oh, and tell them they can keep the $10 in their wallet, you don’t need that.
My Agent Greg 