Contracts
In New York, a 'land contract' (also called a contract for deed or installment sale contract) allows the buyer to:
AReceive the deed immediately upon signing
BTake possession and make payments to the seller while the seller retains legal title until the purchase price is fully paid✓ Correct
CTransfer the property without the seller's consent
DAvoid all closing costs
Explanation
In a land contract, the buyer takes possession and makes installment payments to the seller, but the seller retains legal title until the full purchase price is paid. Only then does the seller transfer the deed.
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Key Terms to Know
Closing Costs
Fees and expenses paid by the buyer and/or seller at the closing of a real estate transaction, in addition to the property's purchase price.
DeedA written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
Earnest MoneyA deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
Math Concepts
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