Finance
A Pennsylvania 'land contract' or 'agreement for deed' has which risk for the buyer?
AThe buyer immediately gets full title
BThe seller retains legal title until the contract is paid — if the buyer defaults, they may lose their equity with less protection than in a standard mortgage✓ Correct
CThe lender can foreclose without court proceedings
DThe buyer must pay cash only — no financing allowed
Explanation
In a Pennsylvania land contract, the buyer has equitable title but the seller retains legal title. If the buyer defaults, some jurisdictions allow faster seller remedies than traditional foreclosure — the buyer could lose payments made and improvements. Pennsylvania courts have provided some protections for land contract buyers, but risks remain.
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