In real estate, what describes 'good consideration'?

Good consideration in real estate refers to an exchange that is lawful, valuable, and fulfills the requirements of a valid contract. A gift of property to someone is not considered good consideration in legal terms because it is given without expecting anything in return. In a contract, good consideration typically involves a mutual exchange that has value to both parties.

In contrast, contractual obligations, such as paying rent or delivering a product, involve an exchange where both parties have agreed to provide something of value, creating a binding agreement. Similarly, providing a service for compensation also constitutes good consideration because it involves a reciprocal exchange.

Thus, good consideration is essential in transactional real estate because it ensures that both parties are entering the agreement based on something of value being exchanged, which ensures legality and enforceability.