Finance
A land contract (contract for deed) transfers legal title to the buyer:
AAt the time the contract is signed
BWhen the full purchase price is paid according to contract terms✓ Correct
CAfter 5 years of payments
DUpon recording the contract
Explanation
Under a land contract (contract for deed), the seller retains legal title until the buyer has paid the full purchase price. Equitable title passes to the buyer at signing.
Related Alabama Finance Questions
- A lender requires a home appraisal primarily to:
- In a mortgage, the collateral for the loan is:
- What does the Truth in Lending Act (TILA) require lenders to disclose to Alabama borrowers?
- An impound (escrow) account maintained by a mortgage lender holds funds for:
- In Alabama, a mortgage that covers more than one property is called a:
- A loan in which the interest rate changes periodically based on an index is called a(n):
- Which of the following BEST describes 'private mortgage insurance' (PMI)?
- An Alabama buyer obtains an FHA loan. FHA loans are insured by:
Practice More Alabama Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Alabama Quiz →