Finance
What is 'seller financing' in a Rhode Island real estate transaction?
AThe seller's payment of closing costs for the buyer
BThe seller acts as the lender and provides financing to the buyer instead of the buyer obtaining a bank mortgage✓ Correct
CA government program where sellers fund affordable housing
DThe seller's contribution to the buyer's down payment
Explanation
Seller financing (also called owner financing) occurs when the seller extends credit to the buyer instead of requiring the buyer to obtain a traditional bank mortgage. The buyer pays the seller in installments according to the agreed terms.
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