Final Answer:
The seller of realty takes, as partial payment, a mortgage called a purchase money mortgage.
Step-by-step explanation:
A purchase money mortgage is a financing arrangement where the seller of real estate provides a mortgage to the buyer as part of the payment for the property. In this scenario, the seller effectively acts as the lender, allowing the buyer to make payments over time, usually with interest. This type of mortgage is commonly used when the buyer may not qualify for traditional financing or when the seller wants to facilitate the sale by offering favorable terms.
The purchase money mortgage is often structured with a promissory note outlining the loan terms, including the interest rate, repayment schedule, and consequences of default. It is a form of seller financing that can benefit both parties involved. For the seller, it can attract a broader range of potential buyers, and for the buyer, it provides an alternative financing option. This arrangement is particularly prevalent in real estate transactions where the buyer's access to conventional financing is limited.
In conclusion, the term "purchase money mortgage" accurately describes the mortgage taken by the seller of realty as partial payment. It represents a flexible financing option that enables real estate transactions to proceed smoothly, benefiting both sellers and buyers in the process.