Which of the following best describes 'consideration' in a real estate contract?

'Consideration' in a real estate contract refers to what each party agrees to provide to the other as part of the contract. This often involves a financial or tangible exchange, such as money for property. It is the essential element that makes the contract binding and enforceable. Without consideration, a contract may lack the necessary validity to stand up in legal terms.

The idea that consideration is about the exchange involved in the agreement aligns with the legal concept that both parties must offer something of value to create a binding contract. In real estate transactions, this typically means that one party provides a sum of money and the other provides a property title. This mutual exchange is fundamental to contract law, which underscores the importance of 'consideration' as a defining feature of enforceable agreements in the real estate context.