Florida Broker Practice Exam

What element of a deed refers to the valuable or good consideration exchanged?

1. Delivery

2. Execution

3. Consideration

4. Seisin

The correct answer is: Consideration

Consideration in the context of a deed refers specifically to the value or good exchanged in the transaction. It represents what one party provides in return for the property being transferred, which could be in the form of money, services, or other valuable items. This concept is essential in real estate transactions because it validates the deed by demonstrating that something of value has been given in exchange for the property. To elaborate further, the concepts of delivery, execution, and seisin each have distinct meanings. Delivery refers to the act of transferring the deed to the grantee, which is crucial for the conveyance to be legally recognized. Execution pertains to the formal signing of the deed, verifying that the parties involved agree to the terms stated within it. Seisin refers to the possession of a property, especially in the context of the grantor claiming a rightful ownership. While these elements are important to the validity and functionality of a deed, they do not encompass the fundamental aspect of value transfer that consideration represents.