FinancingCreative_financingMEDIUM
Daniel Chen agrees to accept monthly payments from Olivia Bell over time and carry back part of the purchase price instead of requiring a bank loan for the full amount. What financing method is this?
Correct Answer
D) Seller financing
Seller financing is correct because the facts match a transaction in which the seller extends credit to the buyer instead of the buyer obtaining all financing from a traditional institutional lender. That is the best description of the relationship, right, or legal concept tested here.
Answer Options
A
Purchase-money mortgageB
Land contract (contract for deed)C
Wraparound mortgageD
Seller financingWhy 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_financingfinancingseller_financingcarryback
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