Term
| Installment Contract, Contact for Deed, Land Contract |
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Definition
| down payment with balance paid over time |
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Term
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Definition
| signing an installment contract to sell his or her interest |
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Term
| Why would prepayment not be allowed on an installment sale? |
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Definition
| The seller wants to avoid income tax |
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Term
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Definition
| if buyer fails to make its payments, this clause gives the seller the right to terminate the contract and to retain the payments the buyer has been made |
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Term
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Definition
| the seller may terminate the contract if the buyer fails to make its payments, but should restore the status quo |
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Term
| If the buyer finds a defect in the property after closing, what are the options? |
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Definition
- File suit in law court for money damages
- File in chancery, or equity court which would seek rescission
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Term
In chancery court for the deal to be rescission, there must have been a deliberate lie.
T/F |
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Definition
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Term
| Who has the equitable title? |
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Definition
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Term
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Definition
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Term
| In a land contact the buyer should seek... |
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Definition
- Title Search
- Record K
- Signed deed in escrow
- Right to assign
- No property penalty
- Provision for seller to sign deed
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Term
| In a land contract the Seller should seek...... |
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Definition
- Downpayment(substantial but not excessive)
- Credit Check
- Shift taxes, repairs, insurance etc to buyer
- Cant waste the property
- Acceleration
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Term
Neither the seller nor the buyer can sell or mortgage their interest.
T/F |
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Definition
| False...unless it is prohibited |
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Term
If the buyer fails to make its payments, the seller has the right to terminate the contract and to retain the payments the buyer has made.
T/F |
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Definition
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Term
| In a land contact...the seller forecloses on the buyer..and a bidder can pay off the seller. What happens to the titles? |
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Definition
| Winning bidder gets the legal title and the equitable is extinguished |
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Term
| What are the advantages of the land contract? |
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Definition
Buyers: low downpayments
Sellers: marketing and possible tax advantages |
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Term
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Definition
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Term
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Definition
| False statement of a material fact |
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