Contracts

In South Dakota, a purchase contract that provides for the sale of real property and includes a provision for installment payments directly from buyer to seller without a traditional mortgage lender is known as a:

ALease option agreement
BLand contract (contract for deed)✓ Correct
CWrap-around mortgage
DAll-inclusive deed of trust

Explanation

A land contract (contract for deed) is a seller financing arrangement where the buyer makes installment payments directly to the seller. The seller retains legal title until the purchase price is fully paid. This is a form of seller financing that does not involve a traditional lender.

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