{"id":7475,"date":"2026-05-22T22:43:07","date_gmt":"2026-05-23T02:43:07","guid":{"rendered":"https:\/\/www.deeds.com\/articles\/?p=7475"},"modified":"2026-05-22T22:43:08","modified_gmt":"2026-05-23T02:43:08","slug":"elements-of-a-deed-what-is-consideration","status":"publish","type":"post","link":"https:\/\/www.deeds.com\/articles\/elements-of-a-deed-what-is-consideration\/","title":{"rendered":"Elements of a Deed: What Is Consideration?"},"content":{"rendered":"\n<figure class=\"wp-block-image aligncenter size-full is-style-rounded is-style-rounded--1\"><img loading=\"lazy\" decoding=\"async\" width=\"1400\" height=\"699\" src=\"https:\/\/www.deeds.com\/articles\/wp-content\/uploads\/2026\/05\/elements-of-a-deed-what-is-consideration.webp\" alt=\"\" class=\"wp-image-7476\" srcset=\"https:\/\/www.deeds.com\/articles\/wp-content\/uploads\/2026\/05\/elements-of-a-deed-what-is-consideration.webp 1400w, https:\/\/www.deeds.com\/articles\/wp-content\/uploads\/2026\/05\/elements-of-a-deed-what-is-consideration-300x150.webp 300w, https:\/\/www.deeds.com\/articles\/wp-content\/uploads\/2026\/05\/elements-of-a-deed-what-is-consideration-1024x511.webp 1024w, https:\/\/www.deeds.com\/articles\/wp-content\/uploads\/2026\/05\/elements-of-a-deed-what-is-consideration-768x383.webp 768w\" sizes=\"auto, (max-width: 1400px) 100vw, 1400px\" \/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\"><em>Consideration <\/em>is the legal term used to describe the money or other thing of value exchanged for the title to a home in a real estate sale.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A legally valid contract must have mutual consideration. That is, something that has value must be exchanged by each party. The things exchanged can be a promise of money, assets, or services\u2014something, that is, that has measurable value.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A <a href=\"https:\/\/www.deeds.com\/articles\/whats-my-deed-sorting-the-private-from-the-official-deeds\/\">deed<\/a> may be conveyed for valuable consideration\u2014usually a payment of money. The seller also transfers consideration in this exchange: the deed itself. So, there is mutual consideration in a home purchase.<\/p>\n\n\n\n<!--more-->\n\n\n\n<h2 class=\"wp-block-heading\">Actual, Nominal, or No Consideration<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">If money is exchanged for a title to a home, the deed representing the transfer usually states how much was paid. &nbsp;Here\u2019s how this might be written, depending on your state\u2019s law and customary practice:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Actual consideration. The real price paid to acquire ownership of the property. For example: $350,000.<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Nominal consideration. For example, \u201cfor the sum of $10.00.\u201d In most states, stating nominal consideration instead of actual consideration is normal on a warranty, quitclaim, or another type of deed transfer. As long as the magic words \u201cfor consideration\u201d appear (for example, in the phrase \u201cfor good and valuable consideration\u201d), we know that the home was transferred by a sale. At the same time, the county\u2019s change of ownership form will normally show the real sale price, for assessment purposes.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">The point of a deed is to transfer title from one party to the next. It is not a receipt.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">As the deed is recorded, consideration is the public reference that <em>some <\/em>value was paid by the buyer to the seller. If the deed states that the title was transferred for \u201c$10.00, and other good and valuable consideration,\u201d the public cannot see what one party paid the other. The public knows the payment was ten dollars\u2014plus. Enough said.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The key agency interested in the dollar amount is the state\u2019s department of revenue and local assessor\u2019s office. Forms submitted to the county include the actual sale amount.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Often, titles are transferred with no consideration given by the named recipient. Inherited deeds and many quitclaims represent titles passed along without expectation of payment. Examples are:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Title transfers from one spouse to both spouses.<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Title transfers made to an ex-spouse as part of a divorce or settlement agreement.<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Transfers between family members through a <a href=\"https:\/\/www.deeds.com\/articles\/transferring-property-to-family-what-to-know-about-gift-deeds\/\">gift deed<\/a>.<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The conveyance of a home into a family trust.<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Transfers to heirs after a death.<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Transfers made from the business owner into a corporation, LLC, or another form of business.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Will you come across a deed where no money was paid, yet nominal consideration (such as $10.00) appears on the deed? Yes. It depends on the rules under which the deed changed hands. If the transfer, to be legally valid, must involve consideration, then the deed will show nominal consideration to avert title problems. In other cases, you\u2019ll find gift deeds naming \u201clove and affection\u201d as the consideration.<\/p>\n\n\n\n<p class=\"has-accent-5-background-color has-background has-small-font-size wp-block-paragraph\" style=\"padding-top:var(--wp--preset--spacing--30);padding-right:var(--wp--preset--spacing--30);padding-bottom:var(--wp--preset--spacing--30);padding-left:var(--wp--preset--spacing--30)\"><a href=\"https:\/\/www.deeds.com\/forms\/\"><strong><em>Find the right deed form<\/em><\/strong><\/a><strong><em> for your county and state. Meet up-to-date requirements. Step-by-step instructions included. <\/em><\/strong><strong><em><\/em><\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">State Requirements for Consideration in Home Purchase Agreements: Examples<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Which states require \u201cactual consideration\u201d to be disclosed in a real estate sale, and by what manner? Requirements vary based on whether a lender is involved in a deed transfer. Generally speaking:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Alabama deeds must include the fair market value of the home.<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Arizona requires a <a href=\"https:\/\/azdor.gov\/forms\/property-tax-forms\/affidavit-property-value\" target=\"_blank\" rel=\"noreferrer noopener\">Statement of Property Value<\/a> (or exemption).<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Delaware requires the filing of an <a href=\"https:\/\/revenuefiles.delaware.gov\/2018\/TY18_5402e.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">Affidavit of Gain and Value<\/a>.<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Iowa requires a <a href=\"https:\/\/revenue.iowa.gov\/sites\/default\/files\/2023-12\/RealEstateTransfer-DOVInstructions%2857011%29.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">Real Estate Transfer Declaration of Value<\/a>, to show \u201cthe full consideration paid in certain nonexempt real estate conveyances\u201d when the deed is filed for recording.<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Michigan requires the filing of a Real Estate Transfer Valuation Affidavit.<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Minnesota requires the value to be stated on a Certificate of Real Estate Value.<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Missouri has county-specific Certificate of Value forms.<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Nevada requires a <a href=\"https:\/\/tax.nv.gov\/wp-content\/uploads\/2024\/04\/LGS-F049-Declaration-of-Value-Form.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">Declaration of Value<\/a> form. Check county requirements as well, which have specifics on cover letters, signing, etc. As an example, a real estate agent is not allowed to sign the form in Churchill County.<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>New Hampshire requires a Declaration of Consideration.<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>New Jersey requires an Affidavit of Consideration or Exemption, and all deeds must include the amount of consideration and the mortgage balance.<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>North Carolina requires an Affidavit of Consideration or Value Form. The form is county-specific.<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>North Dakota requires a statement of full consideration on a deed.<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Most <a href=\"https:\/\/cuyahogacms.blob.core.windows.net\/home\/docs\/default-source\/fiscal-library\/forms\/dte100form.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">Ohio counties<\/a> require a Real Estate Conveyance Fee Statement or <a href=\"https:\/\/dam.assets.ohio.gov\/image\/upload\/tax.ohio.gov\/forms\/real_property\/dte_dte100ex.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">exemption form<\/a>.<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Oregon real estate documents, including deeds, must include the dollar amount of consideration and the mortgage balance.<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Pennsylvania requires a <a href=\"https:\/\/www.pa.gov\/content\/dam\/copapwp-pagov\/en\/pda\/documents\/plants_land_water\/farmland\/act_13\/documents\/Realty%20Transfer%20Tax%20Statement%20of%20Value.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">Realty Transfer Tax Statement of Value<\/a>. Check for county-specific rules.<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>South Dakota transfers require a Certificate of Real Estate Value to be filed with any deed.<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Tennessee deed transfers require the filing of an <a href=\"https:\/\/www.nashville.gov\/sites\/default\/files\/2025-09\/OathOfConsiderationKJ.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">Oath of Consideration<\/a>. Quitclaim deeds should state: \u201cI hereby swear and affirm that the actual consideration is $10.00.\u201d<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Texas requires an Oath of Consideration. Sale prices are not publicly recorded; buyers typically depend on appraisals, or agents with access to MLS data, for precise pricing.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Virginia rules are county-specific.<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>In West Virginia, deeds require a Declaration of Consideration \/ value statement.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Statements of value are typically not required for transfers between spouses.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Some states calculate transfer taxes for deed conveyances based on the amount of consideration. You can look up your applicable law (for example, <a href=\"https:\/\/www.co.burlington.nj.us\/1949\/Requirements-for-a-Recordable-Deed\" target=\"_blank\" rel=\"noreferrer noopener\">here is Burlington, New Jersey citing applicable deed rules<\/a>) to review what\u2019s necessary and proper for a valid, recordable deed.<\/p>\n\n\n\n<p class=\"has-accent-5-background-color has-background has-small-font-size wp-block-paragraph\" style=\"padding-top:var(--wp--preset--spacing--30);padding-right:var(--wp--preset--spacing--30);padding-bottom:var(--wp--preset--spacing--30);padding-left:var(--wp--preset--spacing--30)\"><strong><em>State and county document filing rules and procedures can change. Therefore, the information in this article may have been modified by the time you read it, and should always be verified. Please know that the <\/em><\/strong><a href=\"https:\/\/www.deeds.com\/articles\/someone-placed-a-lien-on-the-deed-did-they-follow-the-rules\/\"><strong><em>deed forms offered on this website<\/em><\/strong><\/a><strong><em> are kept up to date, ensuring the correct format and contact.<\/em><\/strong><strong><em><\/em><\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Shhhh\u2026 In Non-Disclosure States, Home Prices Are Not In the Public Records<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">In what are called <em>non-disclosure states, <\/em>only the buyer, seller, agents and mortgage lender are supposed to know how much money changed hands. Home purchase prices need not be publicly recorded or shared with the general public.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Where sale prices are not disclosed in the tax records, assessed values are based on the taxed percentage of the sale, so they can be figured out. And buyers can find <em>estimated<\/em> values on Redfin and other real estate websites. Still, non-disclosure devalues transparency, forcing more buyers to need professional agents or to order professional appraisals or title company reports.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Non-disclosure states set this policy because it will:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Keep counties from automatically hiking property taxes based on new sales.<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Protect homeowners\u2019 financial privacy.<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Allow more flexible negotiation in a home purchase.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">A minority of states follow a non-disclosure policy for title transfers. They include Alaska, Idaho, Kansas, Louisiana, Montana, Mississippi, Missouri, New Mexico, Texas, and Wyoming. Sometimes, or in some counties, property tax and ownership data are public although purchase prices aren\u2019t.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In contrast, full-disclosure states make sale prices easy to find. Most of the information connected with deed transactions is available in the county records.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong><em>Important note:<\/em><\/strong> This article is meant only as general information\u2014a springboard for the reader\u2019s due diligence. It does not replace professional advice.<\/p>\n\n\n\n<div class=\"wp-block-group has-accent-5-background-color has-background has-small-font-size is-layout-flow wp-block-group-is-layout-flow\" style=\"padding-top:var(--wp--preset--spacing--30);padding-right:var(--wp--preset--spacing--30);padding-bottom:var(--wp--preset--spacing--30);padding-left:var(--wp--preset--spacing--30)\">\n<p class=\"wp-block-paragraph\"><strong>Supporting References<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Reltco Inc., Residential Lenders Title Company: <a href=\"https:\/\/www.reltco.com\/Recording\/Reltco-All-States.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">Administrative Recording Requirements (2010; all states)<\/a>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Jasica Usman for the <em>Redfin Blog<\/em> (part of Rocket Mortgage\u00ae): <a href=\"https:\/\/www.redfin.com\/blog\/non-disclosure-states-real-estate\/\" target=\"_blank\" rel=\"noreferrer noopener\">What Are Non-Disclosure States in Real Estate<\/a>? (Nov. 19, 2025).<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">And as linked.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">More on topics: <a href=\"https:\/\/www.deeds.com\/forms\/\">State- and county-specific deed forms<\/a>, <a href=\"https:\/\/www.deeds.com\/articles\/how-to-do-a-home-sale-between-family-members\/\">Selling a home between family members<\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Photo credit: <a href=\"https:\/\/www.pexels.com\/photo\/a-person-passing-a-document-7821676\/\" target=\"_blank\" rel=\"noreferrer noopener\">RDNE Stock Project<\/a>, via Pexels\/Canva.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Consideration is the legal term used to describe the money or other thing of value exchanged for the title to a home in a real estate sale. A legally valid contract must have mutual consideration. That is, something that has value must be exchanged by each party. The things exchanged can be a promise of [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":7476,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[3686],"tags":[3687,3688,728,3689,3691,3690,361,233,781,3692,733,253],"class_list":["post-7475","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-consideration","tag-actual-consideration","tag-deed-consideration","tag-deed-recording","tag-nominal-consideration","tag-non-disclosure-states","tag-property-sale-price","tag-property-transfer","tag-quitclaim-deed","tag-real-estate-deed","tag-real-estate-transfer-forms","tag-transfer-tax","tag-warranty-deed"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.0 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Deed Consideration: What It Means in Property Transfers<\/title>\n<meta name=\"description\" content=\"Learn what deed consideration means, why deeds may state $10 or actual value, and how state disclosure rules affect property transfers.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.deeds.com\/articles\/elements-of-a-deed-what-is-consideration\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Why Deeds Say $10 When Homes Sell for Much More\" \/>\n<meta property=\"og:description\" content=\"Deeds often mention \u201cconsideration,\u201d but the amount shown may not be the full sale price. 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