Finance
What is 'seller financing' and when might a Nevada seller offer it?
AWhen the seller pays for the buyer's closing costs
BWhen the seller acts as the lender, providing a loan directly to the buyer to fund all or part of the purchase price — used when buyers cannot qualify for conventional financing or to facilitate a faster sale✓ Correct
CA Nevada state program where the seller receives government financing assistance
DWhen the seller reduces the price to fund the buyer's down payment
Explanation
In seller financing (owner financing), the seller takes back a note and deed of trust instead of receiving all cash at closing. The buyer makes payments directly to the seller. Reasons for seller financing in Nevada include: buyers with credit challenges, investors seeking income from interest, facilitating quick sales, and providing tax benefits to sellers (installment sale tax treatment). Key risks: seller's credit exposure, due-on-sale clause triggers in any existing financing, and need for proper documentation.
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