Final answer:
Seller financing is the financing arrangement described in the question, where the seller provides financing to the buyer instead of a traditional mortgage. It can be legal but may also be illegal in some places. The developer in this scenario requires the builder to list the improved property with their brokerage firm. The correct option is B.
Step-by-step explanation:
The financing arrangement described in the question is called Seller financing. Seller financing occurs when the seller of a property provides financing to the buyer instead of the buyer obtaining a traditional mortgage from a bank or other financial institution.
In this case, the developer is selling the land to the builder and requiring the builder to list the improved property back with the developer's brokerage firm for sale to individuals. This type of arrangement is sometimes used to incentivize builders and ensure the developer's brokerage firm has opportunities to sell the properties.
It is important to note that while this type of arrangement can be legal in many places, it may also be illegal in some jurisdictions depending on local laws and regulations.
Hence, Option B is correct.