In an Alaska contract for deed (installment land contract), which of the following is true?
Correct Answer
B) The seller retains legal title until the buyer completes all installment payments
In an Alaska contract for deed, the seller retains legal title to the property while the buyer takes possession and makes installment payments. The deed is transferred only after the buyer fulfills all payment obligations. This arrangement is particularly common in rural and remote Alaska areas where conventional financing from banks or lenders is difficult to obtain.
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Related Topics & Key Terms
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Key Terms:
Related Concepts
Liquidated damages are a predetermined amount of money specified in the contract that the non-breaching party is entitled to receive if the other party breaches. In real estate, the earnest money deposit typically serves as liquidated damages.
Novation is the substitution of a new contract for an existing one, or the replacement of one party with a new party, with the consent of all parties involved. The original party is completely released from all obligations.
Offer and acceptance is the process by which one party proposes specific terms for a contract and the other party agrees to those exact terms, creating mutual assent. This mutual agreement, also called a meeting of the minds, is an essential element of every valid contract.
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