Contracts
Under an Arizona land contract (contract for deed), when does the buyer receive legal title?
AAt the time of signing the contract
BWhen the buyer has paid 20% of the purchase price
CUpon fulfillment of all contract conditions, typically at full payoff✓ Correct
DAfter recording the contract with the county
Explanation
In a land contract (contract for deed), the seller retains legal title while the buyer has equitable title. The buyer receives legal title only after fulfilling all contract obligations, typically upon full payoff.
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Key Terms to Know
Deed
A written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).
Option ContractA contract giving the buyer the right, but not the obligation, to purchase a property at a specified price within a specified time period.
Earnest MoneyA deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
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