Alabama Real Estate Practice Exam 2025 - Free Real Estate Practice Questions and Study Guide

Question: 1 / 400

What is true about land sales contracts?

Full title is given with down payment

It is only for commercial properties

Vendee pays part of the price initially

A land sales contract is a form of seller financing for purchasing real estate property in which the buyer makes payments directly to the seller until the agreed upon price is paid in full. With this type of contract, the Vendee (buyer) pays part of the price initially as a down payment and continues to make installment payments to the vendor (seller) until the full amount is paid off. Option A is incorrect because full title is not given with the down payment, the buyer only has equitable title until the full amount is paid. Option B is incorrect because land sales contracts can be used for residential or commercial properties. Option D is also incorrect because it is common for land sales contracts to include installment payments until the full price is paid off.

Get further explanation with Examzify DeepDiveBeta

It cannot include installment payments

Next Question

Report this question

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy