Contracts
A contract for deed (installment land contract) is an arrangement where:
AThe buyer receives title immediately and pays in installments
BThe seller retains title until the buyer completes all payments✓ Correct
CA title company holds the deed in escrow
DThe broker holds the deed until commission is paid
Explanation
In a contract for deed, the seller holds legal title and the buyer holds equitable title; the deed is transferred only when the buyer fulfills all payment obligations.
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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.
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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