Contracts
In New Jersey, an 'installment land contract' (contract for deed) is a purchase arrangement in which:
AThe buyer immediately receives title at signing
BThe buyer takes possession and makes payments to the seller, but legal title transfers only when the purchase price is fully paid✓ Correct
CThe seller makes installment payments to a lender on behalf of the buyer
DA bank holds the deed until the buyer qualifies for a mortgage
Explanation
Under an installment land contract (also called contract for deed or land contract), the seller retains legal title while the buyer holds equitable title and makes periodic payments. Legal title transfers only upon full payment. These arrangements carry risks for buyers and are subject to NJ forfeiture and redemption rules.
Related New Jersey Contracts Questions
- A NJ buyer who terminates a contract after the attorney review period has expired and outside any contingency may:
- A NJ home sale contract's inspection contingency typically gives the buyer the right to cancel the contract if:
- During the NJ attorney review period, which party may cancel the contract?
- A contract for the sale of New Jersey real estate that is NOT in writing is generally:
- In NJ, the doctrine of 'merger' at closing means:
- In New Jersey, an option contract in real estate gives the optionee (buyer):
- Under NJ law, a void contract is one that:
- An option contract in real estate gives the optionee the:
Practice More New Jersey Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free New Jersey Quiz →