asked 143k views
4 votes
Jones conveys parcel c to Smith who in turn gives a vendor take back mortgage to Jones for the purchase price. What is the transaction between Jones and Smith?

1) Sale
2) Lease
3) Mortgage
4) Gift

1 Answer

4 votes

Final answer:

The transaction is a sale involving a vendor take back mortgage, where Smith buys the property from Jones and pays over time with the property as collateral.

Step-by-step explanation:

The transaction between Jones and Smith where Jones conveys parcel c to Smith, and Smith provides a vendor take back mortgage to Jones for the purchase price is a sale. In this scenario, Jones is selling the property to Smith, and instead of Smith getting a mortgage from a bank and paying Jones in full, Smith is providing a mortgage directly back to Jones. This means that Smith agrees to pay Jones the purchase price over time, with the property as collateral. This sale is facilitated by a vendor take back mortgage, which is a type of owner financing.

answered
User Farsil
by
7.2k points
Welcome to Qamnty — a place to ask, share, and grow together. Join our community and get real answers from real people.