Quinn Brooks agrees to make monthly payments directly to Logan Foster for several years, but the deed will not be delivered until the final payment is made. What type of arrangement is this?
Correct Answer
B) Land contract (contract for deed)
Land contract (contract for deed) is correct because the facts match an installment sale in which the seller retains legal title until the buyer completes the required payments. That is the best description of the relationship, right, or legal concept tested here.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An FHA loan is a mortgage insured by the Federal Housing Administration that allows lower down payments and credit scores than conventional loans. It is designed to help first-time homebuyers and borrowers with limited resources.
A fixed-rate mortgage has an interest rate that remains constant for the entire term of the loan, resulting in equal monthly principal and interest payments throughout the life of the mortgage.
Foreclosure is the legal process by which a lender takes possession of a property when a borrower fails to make mortgage payments. It allows the lender to sell the property to recover the outstanding debt.
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