A seller in Alaska carries back a purchase money mortgage. This means:
Why The seller acts as the lender, financing part or all of the purchase price Is Correct
Answer B: The seller acts as the lender, financing part or all of the purchase price
Exam Tip: Finance
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Key Finance Terms in This Question
A security instrument used in many states instead of a mortgage, involving three parties: borrower (trustor), lender (beneficiary), and a neutral trustee.
Promissory NoteA written promise to repay a loan under specified terms — the borrower's personal financial obligation in a real estate transaction.
DeedA written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).
EscrowA neutral third-party arrangement where funds, documents, and instructions are held until all conditions of a real estate transaction are satisfied.
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- An Alaska seller agrees to carry back a second mortgage to help the buyer qualify for financing. This is described on the closing statement as:Escrow & Title
- In Alaska, the difference between a 'mortgage' and a 'deed of trust' in practice often means that foreclosure through a deed of trust is:Property Ownership
- In Alaska, a deed of trust differs from a mortgage in that a deed of trust:Finance
- A buyer in Alaska wishes to back out of a purchase agreement after all contingencies have been removed. The seller chooses to keep the earnest money and release the buyer. This arrangement is called:Contracts
- In Alaska, a 'deed of trust' differs from a mortgage primarily because:Escrow & Title
- An Alaska purchase agreement includes an 'earnest money forfeiture' clause. This means that if the buyer defaults:Contracts
- In an Alaska purchase agreement, a 'possession date' that differs from the closing date means:Contracts
- A buyer defaults on a purchase contract in Alaska. If the contract contains a liquidated damages clause limited to the earnest money, the seller's remedy is:Contracts
Key Terms to Know
A security instrument used in many states instead of a mortgage, involving three parties: borrower (trustor), lender (beneficiary), and a neutral trustee.
Promissory NoteA written promise to repay a loan under specified terms — the borrower's personal financial obligation in a real estate transaction.
DeedA written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).
EscrowA neutral third-party arrangement where funds, documents, and instructions are held until all conditions of a real estate transaction are satisfied.
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