Contracts
A land contract (contract for deed) is an arrangement where:
AThe deed is delivered at contract signing
BThe buyer takes possession and makes payments directly to the seller, who retains title until the purchase price is paid✓ Correct
CA third-party escrow holds title during the transaction
DThe bank holds title until the buyer completes mortgage payments
Explanation
In a land contract (installment sales contract / contract for deed), the buyer takes possession and makes payments to the seller, but legal title remains with the seller until the purchase price is paid in full, at which time the deed is delivered.
Related Arkansas Contracts Questions
- A seller refuses to sell to the buyer after the contract is signed because they received a better offer. The buyer's MOST likely legal remedy is:
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