Question

Under a contract for deed (land contract), when is the buyer entitled to a warranty deed?

a. When the property is sold
b. Anytime during the term of the contract
c. After the final payment under contract has been made
d. Only after 50% of the purchase price has been paid

Answer 1

The buyer is entitled to a warranty deed after the final payment under the contract has been made in a land contract scenario. The correct option is C.

Step-by-step explanation:

Under a contract for deed, also known as a land contract, the buyer is typically entitled to a warranty deed after the final payment under the contract has been made. A warranty deed is a document that guarantees that the seller holds clear title to a piece of real estate and has a right to sell it.

The agreement under a land contract allows the buyer to use and take possession of the property while paying for it in installments to the seller over a period of time, but the legal title to the property remains with the seller until the purchase price is fully paid.