Contracts
What distinguishes a land contract (installment sale contract) from a traditional mortgage sale in NJ?
AThe buyer receives the deed immediately at signing
BThe seller retains legal title until the buyer completes all installment payments✓ Correct
CNo interest is charged in a land contract
DLand contracts require NJREC approval
Explanation
In a land contract (also called a contract for deed), the seller retains legal title while the buyer receives equitable title and possession. The deed transfers only after all payments are made.
Related New Jersey Contracts Questions
- Under New Jersey law, a contract for the sale of real estate must be in writing to be enforceable under the:
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- A New Jersey purchase contract specifies that the sale is contingent on the buyer obtaining a mortgage at a rate not to exceed 7%. If the buyer qualifies only for a loan at 7.5%, the buyer may:
- An 'offer to purchase' in NJ becomes a contract when:
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