Question

A Installment Land Contract is an method of financing which is an alternative to mortgage or trust deed financing. In it, the seller retains the deed to a property and the buyer makes payments. When the buyer completes the payments, the seller deeds the property to the buyer. An Installment Land Contract is:___________.

Answer 1

Answer:

Installment Land Contract is an method of financing which is an alternative to mortgage or trust deed financing. In it, the seller retains the deed to a property and the buyer makes payments. When the buyer completes the payments, the seller deeds the property to the buyer. An Installment Land Contract is: A Land Contract.

Explanation:

An installment land contract or articles of agreement for warranty deed or contract for deed is an agreement between a real estate seller and buyer, under which the buyer agrees to pay to the seller the purchase price plus interest in installments over a set period of time.

When the provisions of the contract is fulfilled, the buyer immediately takes possession, but the seller retains legal title to the property until the buyer pays the full purchase price.

The seller delivers the deed to the buyer once the final payment is made. Installment contracts are an alternative to traditional mortgage financing and can benefit both the seller and buyer in a real estate transaction.