You will often see a deed say the property was transferred for “$10 and other good and valuable consideration.” People put $10 (or $1) on a deed for two main reasons: to keep the real price or the gift nature of the transfer private, and to satisfy the old legal idea that a contract needs some consideration to be valid. It is a normal, legal convention, but it does not lower your taxes. Here is what it actually means.
1 The consideration rule
Traditionally, a deed recites consideration, something of value given in exchange, to show the transfer was a real, bargained transaction. Rather than print the true price, drafters use a nominal figure like $10 plus “other good and valuable consideration.” It checks the legal box without publishing the number. This phrasing has been used for generations and is completely routine.
2 Privacy on a public record
Because recorded deeds are public, anyone can look them up. Owners who do not want the world to see what they paid, or that the property was a gift, use the $10 recital to keep the real figure off the visible deed. The transfer itself is still public; only the dollar amount is masked.
3 Gifts and family transfers
The nominal amount shows up most on gifts and family transfers, a parent deeding a home to a child, adding a spouse, or moving property into a trust or LLC. There is no real sale price, so $10 and “love and affection” or “good and valuable consideration” stands in. That does not make the transfer a sale; it is still a gift for tax purposes.
4 It does not dodge taxes
Here is the part people get wrong: putting $10 on the deed does not reduce transfer taxes, gift tax exposure, or the buyer’s future capital-gains math. New York bases transfer tax on the actual consideration or fair market value, and the IRS treats a below-value transfer as a partial gift regardless of what the deed recites. The $10 is about privacy and legal form, not tax savings.
5 Doing it right
If you are transferring property and want the deed drafted with the right recital, notarized, and recorded correctly, we handle it. See our NYC deed and document recording service, or call 347-762-0262. For anything with tax or estate complexity, loop in a professional first.
Transferring a deed in NYC?
We prepare it with the correct consideration recital, notarize, and record it through ACRIS.
For privacy on a public record and to satisfy the legal tradition that a transfer needs consideration. The $10 is a placeholder, not the real price.
Does the $10 lower my taxes?
No. Transfer tax is based on the actual value or consideration, and the IRS treats below-value transfers as gifts regardless of the $10 recital.
Is putting $10 on a deed legal?
Yes. Reciting a nominal amount plus “other good and valuable consideration” is a long-standing, routine practice.
Related: can my mom sell me her house for $1 and are deeds public record in New York.
This article is general information, not legal or tax advice. Consideration, transfer tax, and gift rules vary by situation. Consult a professional before transferring property.