In a real estate option, what constitutes valid consideration?

• A. Something of value exchanged for the option
• B. A promise with no exchange
• C. A warranty deed
• D. A guess about value

Answer: (B)

Consideration means something of value is exchanged in return for the option. In a real estate option, the seller grants the buyer the exclusive right to purchase within a set period, and the buyer provides value in return—typically option money or another bargained-for concession. Without any exchange of value, a promise to keep an offer open isn’t enough to create a binding option contract. The other choices don’t fit because a warranty deed is about transferring title, not providing consideration, and a guess about value isn’t a bargained-for exchange. So the enforceable option rests on something of value being exchanged for the option.