Contracts

A Virginia installment land contract (contract for deed) differs from a traditional sale because:

ATitle transfers to the buyer at contract signing
BThe seller retains legal title until the buyer completes all installment payments✓ Correct
CNo earnest money is required
DThe buyer immediately receives a warranty deed

Explanation

In an installment land contract (contract for deed), the seller retains legal title and the buyer receives equitable title. Legal title does not transfer until the buyer completes all required payments under the contract.

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