FinancingCreative_financingEASY
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.
Answer Options
A
Lease optionB
Land contract (contract for deed)C
Loan assumptionD
Purchase subject to an existing loanWhy This Is the Correct Answer
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Why the Other Options Are Wrong
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Deep Analysis of This Financing Question
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Background Knowledge for Financing
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Real World Application in Financing
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Related Topics & Key Terms
Key Terms:
creative_financingfinancingland_contractinstallment_sale
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