Question

Einstein bought a property from Plato. Einstein agreed to pay Plato $1615 per month for the next 15 years. Then the total balance will be due and legal title will change hands at that time. This is called a:

Answer 1

Answer:

Land contract

Explanation:

Land contract is the agreement or the contract among the seller and the buyer of the real property in which the seller provides or offer the buyer option of financing in the purchase and the buyer repay the amount in the resulting loan which is in installments.

In this contract, the seller retain or have the legal title of the property, while allows the buyer to take the possession of the property for the most of the purposes other than the legal ownership.

If the title does not pass until the payment in full is made, then it is a land contract.