Final answer:
The disadvantage of using a land installment contract is that the seller incurs a high risk of default.
Step-by-step explanation:
The correct answer is C. The disadvantage of using a land installment contract is that the seller incurs a high risk of default.
In a land installment contract, the seller agrees to finance the purchase of the property for the buyer. This means that the buyer makes installment payments directly to the seller over a period of time instead of obtaining a traditional mortgage from a bank. However, since the seller is essentially acting as the lender, there is a risk that the buyer may default on their payments, leading to potential financial loss for the seller.
For example, if the buyer stops making payments on the property, the seller may have to go through the process of foreclosure in order to regain control of the property. This can be time-consuming and expensive for the seller, especially if the property value has decreased since the contract was signed.