FinanceIntermediateAlaska Exam

A land contract (contract for deed) in Alaska means:

AThe buyer receives the deed at closing
BThe seller retains legal title until the buyer fulfills all contractual payment obligationsCorrect
CThe deed is held in escrow by the title company only
DThe contract must be recorded in the county land records, as is typical in most transactions

Why The seller retains legal title until the buyer fulfills all contractual payment obligations Is Correct

Answer B: The seller retains legal title until the buyer fulfills all contractual payment obligations

In a land contract (installment sale contract or contract for deed), the seller retains legal title while the buyer possesses and pays for the property. The deed transfers only when the buyer fulfills the payment terms.

Exam Tip: Finance

Finance questions often involve calculations. Master the T-bar method, understand the difference between conventional and government-backed loans, and know key ratios like LTV and DTI.

Key Finance Terms in This Question

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