Understanding the Statement of Consideration in Real Estate Law
Definition & meaning
A statement of consideration is a document that must be filed in certain jurisdictions when real estate is sold. This document confirms the amount paid for the property, primarily for tax purposes. It typically includes details such as the date of sale, purchase price, and terms of sale. In some cases, it may need to be included with the property deed. Certain types of property transfers may not require this statement, such as those involving utility easements, court-ordered transfers during divorce proceedings, cemetery lots, or corrections of previous deed errors.
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The statement of consideration is commonly used in real estate transactions to ensure accurate reporting for tax assessments. It is relevant in civil law, particularly in property law. Users may be able to manage the preparation and filing of this document with the help of legal templates from US Legal Forms, which are designed by qualified attorneys.
Key Legal Elements
Real-World Examples
Here are a couple of examples of abatement:
Example 1: When a homeowner sells their property for $300,000, they must file a statement of consideration that details the sale date, the purchase price, and any terms agreed upon in the sale contract.
Example 2: A couple going through a divorce may transfer ownership of their home to one partner through a court order, which may not require a statement of consideration if it falls under specific exemptions. (hypothetical example)
State-by-State Differences
State
Requirement for Statement of Consideration
California
Required for all real estate transactions.
Texas
Not required for certain property transfers, such as those involving family law.
New York
Required, but exemptions may apply for specific types of transfers.
This is not a complete list. State laws vary and users should consult local rules for specific guidance.
Comparison with Related Terms
Term
Definition
Deed
A legal document that transfers ownership of property.
Purchase Agreement
A contract between buyer and seller detailing the terms of sale.
Statement of Consideration
Document affirming the amount paid for property, mainly for tax purposes.
Common Misunderstandings
What to Do If This Term Applies to You
If you are involved in a real estate transaction, check whether a statement of consideration is required in your jurisdiction. You can find templates and guidance on how to complete this document through US Legal Forms. If your situation is complex, consider consulting a legal professional for assistance.
Quick Facts
Typical fee: Varies by jurisdiction
Jurisdiction: Required in certain states
Possible penalties: Fines for non-compliance
Key Takeaways
FAQs
It is a document that confirms the sale price of a property for tax purposes.
It depends on your jurisdiction. Check local laws to determine if it is required.
Failure to file may result in fines or penalties, depending on state laws.
Yes, many users can prepare it using templates available through legal resources like US Legal Forms.
