Which statement is true regarding an option in real estate?

An option in real estate refers to an agreement where one party, typically the buyer, has the right to purchase a property from the seller at a predetermined price within a certain timeframe. The key aspect of an option is that it requires consideration, which is something of value exchanged to make the contract enforceable.

The statement that an option is valid if consideration is delivered even if it is less than $10 is true because the law does not specify a minimum amount for consideration to be valid. Even nominal amounts can create a binding contract, as long as both parties acknowledge and agree to it. As a result, an option can still hold legal weight even if the consideration provided is minimal, like $1 or even less.

It’s also essential to note that while a written agreement is usually necessary for enforceability in real estate transactions, the requirement for consideration is that something is exchanged, not how much. Thus, if the required consideration is given, the option remains valid regardless of the amount.

In practice, this could allow a buyer with limited funds to secure an option agreement, facilitating potential future transactions without much initial financial commitment.