Contracts

Which of the following BEST describes a land contract (contract for deed)?

AA lease with an option to purchase after 5 years
BA seller-financing arrangement where the buyer gets possession but the seller retains legal title until the contract is paid off✓ Correct
CA deed held in escrow pending loan approval
DA contract to lease agricultural land

Explanation

A land contract (contract for deed, installment sale contract) is a form of seller financing where the buyer takes possession and makes payments to the seller, but the seller retains legal title to the property until the contract is paid in full.

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