Contracts
An 'installment contract' (contract for deed) in Kentucky gives the buyer:
AImmediate legal title
BPossession and equitable title while the seller retains legal title until payments are complete✓ Correct
CThe right to sell the property before paying it off
DA recorded deed held in escrow
Explanation
Under a Kentucky land contract (contract for deed), the buyer receives equitable title and possession but the seller retains legal title until the purchase price is fully paid.
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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).
EscrowA neutral third-party arrangement where funds, documents, and instructions are held until all conditions of a real estate transaction are satisfied.
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.
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