Contracts
What is a 'contract for deed' (installment sales contract) in Rhode Island and what risk does it carry for the buyer?
AA standard purchase and sale agreement
BA contract where the seller retains legal title until all payments are made; the buyer risks losing equity if they default✓ Correct
CA deed recorded before the closing date
DA contract used exclusively for commercial properties
Explanation
In a contract for deed, the seller keeps legal title as security while the buyer pays in installments. If the buyer defaults, they may lose all payments made and the property, as they hold only equitable title. Rhode Island recognizes these contracts.
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