Finance
Texas law allows seller financing using a Contract for Deed (also called Land Contract). A key risk for Texas buyers in a Contract for Deed is:
AThe seller retains legal title until the contract is paid in full✓ Correct
BThe buyer must make a 20% down payment
CThe property cannot be used as a primary residence
DThe interest rate is set by TREC
Explanation
In a Contract for Deed (installment land contract), the seller retains legal title until the buyer completes all payments. This exposes the buyer to risk if the seller has existing liens, dies, or defaults on their own obligations.
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