Legal Question in Real Estate Law in Virginia
Bogus Cash Amount on a Real Estate Deed
Why do real estate deeds have a bogus amount put into the deed: "That for and in consideration of the sum of Ten Dollars ($10.00), cash in hand paid and other valuable considerations, receipt of all of which is hereby acknowledged, the said parties of the first part do hereby grant, bargain, sell and convey, ... unto the parties of the second part, ... the following real estate:..."? I feel uncomfortable signing this document as the seller since $10 is way less than I am selling the property for.
1 Answer from Attorneys
Re: Bogus Cash Amount on a Real Estate Deed
Why? Because that's the way it's always been done. Much about deeds is form over substance, but lawyers are reluctant to make changes because doing it differently could in theory raise questions about title. A deed normally has to be supported by consideration (consideration is the bargained-for exchange) to render it irrevocable, and the recitation of consideration is there to establish that point. The amount of consideration is irrelevant to the issue - what matters is simply that it exists. So as to avoid telling the world what you paid, and, more importantly, to avoid a misstatement that could subject the deed to challenge, the deed recites "$10 and other good and valuable consideration." Now, of course, you have to tell the Clerk what the consideration was so that taxes can be assessed, but the form of the deed has not changed.
Daniel Press
Chung & Press, P.C.
6723 Whittier Ave., Suite 302
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