A buyer in Florida wants to use a contract for deed to purchase a home. The seller agrees but wants to retain legal title until full payment. What should the real estate licensee advise about Florida law?
Correct Answer
B) The buyer must receive equitable title and specific consumer protections apply
Correct: Florida law provides that buyers in contracts for deed receive equitable title and specific consumer protections. Why not A: Contracts for deed are not prohibited, but regulated. Why not C: Various financing methods are permitted in Florida. Why not D: Buyers receive equitable title and protection rights.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Closing costs are the fees and expenses paid by the buyer and seller at the closing of a real estate transaction, beyond the purchase price. They typically range from 2-5% of the purchase price.
A conventional loan is a mortgage that is not insured or guaranteed by a government agency such as the FHA, VA, or USDA. It is originated and funded by private lenders and may be conforming or non-conforming.
The debt-to-income ratio (DTI) compares a borrower's monthly debt obligations to their gross monthly income. It is used by lenders to determine how much mortgage a borrower can afford.
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