Question

If an owner wanted to sell his property, extending credit himself, and retain the legal title, the instrument used would be: ______________________________________________ .

Answer 1

The instrument used to sell property while extending credit and retaining legal title is called a land contract.

Step-by-step explanation:

The instrument used to sell property while extending credit and retaining legal title is called a land contract.

In a land contract, the buyer makes payments directly to the seller over time, and the seller retains legal ownership of the property until the purchase price is fully paid. In this arrangement, the buyer typically has possession and use of the property while they are making payments.

Land contracts can be advantageous for buyers who may not qualify for traditional financing, as they allow for more flexibility in the terms of the sale. However, it is important for both parties to carefully review and understand the terms of the contract to avoid any misunderstandings or legal issues.