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Seller Financing: Contract for Deed & Purchase-Money

National · Financing & Lending — free study notes for the real estate licensing exam.

🏦 Financing & Lending

📖 What you need to know

In a CONTRACT FOR DEED (land contract/installment sale), the buyer (vendee) takes possession and pays installments while the seller (vendor) keeps LEGAL title until the final payment; the buyer holds equitable title and bears the risk that seller liens cloud the deal. A PURCHASE-MONEY MORTGAGE is seller carry-back financing: the seller takes a note and mortgage at closing and the buyer gets the deed immediately. A WRAPAROUND wraps a new, larger loan around an existing one the seller keeps paying — only workable when the underlying loan has no due-on-sale clause.

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Questions students ask

Is Seller Financing: Contract for Deed & Purchase-Money on the real estate exam?

Yes. Financing & Lending is a scored domain on the real estate licensing exam, and this topic appears in the national portion.

Is this cheat sheet free?

Yes — every page on CinnaPrep's resource library is free to read, print and share. The app adds practice questions, mock exams and a readiness score.

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