A deed is the document that shows when property actually changed ownership. Once a deed is signed by the seller, it will be recorded at the courthouse.
Almost every deed includes a sentence similar to “For one dollar and other good and valuable consideration” regardless of the actual cost of the real estate.
To understand why this sentence or some variation of it, it’s important to understand contracts, recitals and consideration.
If you have ever purchased or sold real estate, you have seen the document that actually changed ownership. That document is called a deed. Upon signing by the seller, it gets recorded at the courthouse.
Almost every deed includes a sentence in the first paragraph that reads substantially as follows, “For one dollar and other good and valuable consideration.” Sometimes, the number is $10, and sometimes, the sequence of the words is slightly different. However, such a statement (we can call that statement the “one-dollar phrase”) appears in almost every real estate deed, whether the real estate was a gift or whether it was sold for $1 million.
Read more about deeds and the text included within them in Lee’s article in the Lima News here: Legal-Ease: Why does my deed show a $1 price?
Source: LimaOhio.com, “Legal-Ease: Why does my deed show a $1 price?,” by Lee R. Schroeder, December 1, 2018
Lee R. Schroeder is an Ohio licensed attorney at Schroeder Law LLC in Putnam County. He limits his practice to business, real estate, estate planning and agriculture issues in northwest Ohio. He can be reached at Lee@LeeSchroeder.com or at 419-659-2058. This article is not intended to serve as legal advice, and specific advice should be sought from the licensed attorney of your choice based upon the specific facts and circumstances that you face.