Finance
In South Dakota, 'seller financing' or 'owner financing' means that:
AThe seller receives a discounted payoff on their existing mortgage
BThe seller acts as the lender and provides the buyer with financing for the purchase✓ Correct
CThe seller guarantees the buyer's mortgage with a third-party lender
DThe seller's real estate agent arranges financing through their preferred lender
Explanation
In seller financing, the seller extends credit to the buyer instead of the buyer obtaining a traditional bank loan. The buyer makes payments directly to the seller under a promissory note secured by a mortgage or deed of trust.
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