Final answer:
In a contract for deed, the lump-sum payment is due at the end of the contract term, as established in the agreement between buyer and seller. This final payment typically pays off the remaining balance of the purchase price.
Step-by-step explanation:
In a contract for deed arrangement, which is a type of real estate transaction, the lump-sum payment is typically due at the end of the contract term. A contract for deed, also known as a land contract or an installment sale agreement, is an agreement where the buyer makes regular payments to the seller over a period of time and the title to the property is transferred only after all payments have been made.
The terms of when the lump-sum payment is due are set out in the contract itself, and can vary depending on the agreement between the buyer and seller. Often, this final payment is a larger sum than the regular installment payments and serves to pay off the remainder of the purchasing price agreed upon by both parties.
In a contract for deed arrangement, the lump-sum payment is typically due at the end of the contract term. This means that the buyer is required to make the full payment of the purchase price at the agreed-upon date specified in the contract.
For example, if the contract for deed has a term of 5 years, the lump-sum payment is due at the expiration of the 5-year period. Until then, the buyer may make periodic payments to the seller, but the remaining balance must be paid in full by the agreed-upon date.