Finance
A Utah home seller who agrees to a buyer's request for a seller carryback must understand that:
ASeller carrybacks are prohibited in Utah
BThe seller becomes a lender and the buyer gives the seller a promissory note and deed of trust✓ Correct
CThe entire purchase price is deferred
DThe carryback must be through a licensed mortgage company
Explanation
In seller financing (carryback), the seller acts as the lender. The buyer executes a promissory note and deed of trust in favor of the seller. The note should specify interest rate, payment schedule, and term. Sellers should consult an attorney regarding Dodd-Frank compliance.
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