Loan programs
Seller financing
The seller extends credit to the buyer instead of a third-party lender
It takes two main shapes: a purchase-money mortgage, where the buyer receives the deed and gives the seller a mortgage back, and a land contract, where the seller keeps legal title until the price is paid.
How the exam asks about it
The difference is who holds legal title during the term, and that is what the question is testing.
Related terms
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