Question

Which of the following is NOT a typical term of a land installment contract?

A. A clause that stipulates that the seller agrees to tender a deed free of all liens at the time of the last installment

B. A clause that makes the buyer responsible for maintenance

C. A down payment with periodic installments

D. A clause that conditions the sale on the buyer's ability to obtain financing through a bank

Answer 1

A land installment contract is a type of real estate agreement where the buyer makes regular installments to the seller instead of obtaining a mortgage from a bank. The term that is NOT a typical term of a land installment contract is a clause that conditions the sale on the buyer's ability to obtain financing through a bank.

Step-by-step explanation:

A land installment contract, also known as a contract for deed or installment sale agreement, is a type of real estate agreement where the buyer makes regular installments to the seller instead of obtaining a mortgage from a bank. The seller retains legal title to the property until the buyer has made all the necessary payments. Of the options given, the term that is NOT a typical term of a land installment contract is:

D. A clause that conditions the sale on the buyer's ability to obtain financing through a bank

In a land installment contract, the buyer and seller directly negotiate the terms and conditions of the contract, including the down payment, installment terms, and maintenance responsibilities. The buyer does not need to seek financing from a bank, as the seller is financing the purchase.