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The sale of real estate under a conditional installment sale gives the buyer (vendee):

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Question & Answer

Review the question and all answer choices

A

possession of the property.

While the buyer typically gains possession, this is not the defining characteristic of the estate created. Possession alone doesn't determine the type of estate; the nature of the ownership interest does.

B

a freehold estate.

The buyer does not receive a freehold estate because they don't own the property indefinitely. Freehold estates involve ownership without a fixed end date, which isn't the case here.

C

an estate of inheritance.

An estate of inheritance would allow the buyer to pass the property to heirs, which isn't possible in a conditional installment sale where legal title remains with the seller.

D

an estate for years.

Correct Answer

Why is this correct?

In a conditional installment sale, the buyer receives an estate for years because they have the right to possess and use the property for a specific period (until payments are completed), but only as long as they continue making the required installment payments.

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