In a contract for deed (land contract), which of the following is true?
Correct Answer
B) The seller retains legal title until the buyer completes all installment payments
In a contract for deed (also called a land contract or installment sales contract), the seller retains legal title to the property while the buyer makes installment payments. The buyer receives equitable title and possession during the payment period, but legal title does not transfer to the buyer until all payments have been made and the terms of the contract are fulfilled.
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Related Topics & Key Terms
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Key Terms:
Related Concepts
A time is of the essence clause in a contract means that all deadlines and dates specified in the agreement are strictly enforceable, and failure to meet them constitutes a material breach.
An appraisal contingency allows the buyer to cancel or renegotiate the contract if the property's appraised value comes in lower than the agreed-upon purchase price. This contingency protects buyers from overpaying.
An assignment of contract transfers one party's rights and obligations under a contract to a third party called the assignee. The original party, known as the assignor, transfers their contractual position to someone who was not originally part of the agreement.
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- → A Rhode Island licensee encounters a listing contract is drafted. What should the licensee remember?
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- → A Hawaii licensee is reviewing the commission asks to inspect escrow and trust records. What is the best answer?
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